Experian releases 2020 Global Identity and Fraud Report
Beijing, April 23 2020 — Businesses in Mainland China might feel confident in identifying customers and engaging with them digitally, but consumers don’t feel the same way. Research from the 2020 Global Identity and Fraud Reportreleased by Experian – the world’s leading global information services company – shows that Chinese businesses ranked the third highest in Asia Pacific at 98 per cent in being confident in identifying and recognising their customers digitally, after Indonesia and India, where companies felt 100 per cent confident in their ability.
Experian interviewed 6,500 consumers and 650 businesses across 14 countries worldwide for the report, including Mainland China, India, Japan, Indonesia, Australia, United States, United Kingdom, Germany/Austria, France, Spain, the Netherlands, Brazil and Columbia. Experian’s 2020 Global Identity and Fraud Report explores inconsistencies between businesses’ views of their ability to meet their customers’ needs, and customer experiences with those businesses.
Globally, while 95 per cent of businesses are confident in their ability to identify customers digitally, more than half of consumers across the globe do not feel recognised when engaging with businesses online.
In addition, fraud poses significant challenge for businesses worldwide, with 57 per cent of businesses seeing rising year-on-year fraud losses linked to account opening and account takeover fraud, often rising from the inability to recognise customers.
Two thirds of consumers globally said security is still the most important factor when deciding to engage a business.
Businesses need to recognise consumer priorities to build trust
In China, consumers want security and convenience whereas businesses are prioritising personalisation.
For the fourth year in a row, Chinese consumers cited security as the most important factor when deciding to engage with a business online, followed by ease of access to their accounts.
78 per cent of Chinese consumers see the value of providing their personal information, the third highest in Asia Pacific and globally, if it provided them with benefits. 92 per cent of Chinese consumers enjoyed having a personalised customer experience after sharing their data, compared to 88 per cent globally.
When consumers feel assured about security, businesses get a win-win relationship further driven by convenience, with personalisation enabling a business to maximise its potential.
“Our research has revealed two inconsistencies between Chinese businesses and consumers. The first involves businesses having high confidence in their ability to identify customers, and consumers not feeling the same way. The second is how businesses prioritise personalised offers, while customers place emphasis on data security,” says Huang Jian, Managing Director of Experian Greater China. “The false confidence that companies have in identifying and re-recognising customers online is contributing to higher fraud losses. On the consumer front, it’s leading to a lack of trust. For companies to be truly customer-centric, they need to recognise that consumers are prioritising data security, and balance this with their own business needs, which is the first step in building trust and having meaningful online interactions.”
From July to November 2019, Experian conducted research among 6,500 consumers ages 18-69 and 650 businesses across banks, card and payment providers, telecommunications providers, online and mobile retailers in 14 countries including United States, United Kingdom, Germany/Austria, France, Spain, the Netherlands, Brazil, Colombia, Mainland China, India, Japan, Indonesia and Australia. Findings were further validated by over 26 in-depth phone interviews with senior executive leaders with decision making responsibilities for the strategic planning process for digital customer experience, technology and innovative, or fraud risk management across a range of functions, including product, marketing, operations, information technology, general management and finance. This is the fourth year of the study.
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