Switch to digital banking increases risk

Aussies are turning away from bank branches to do their banking online, a shift driven by the Covid-19 pandemic, according to global fraud technology specialist GBG and data intelligence firm RFi Group.

They found that 88% of consumers can’t see themselves going back to using a branch, while 40% indicated that during the pandemic they completed digitally a banking task that they otherwise would have done at a branch.

“It’s clear that, unlike going back to a favourite restaurant or visiting a local cinema, Australians aren’t looking forward to returning to physical bank branches,” says Carol Chris, regional general manager, Australia, at GBG.

“The pandemic gave Australians an opportunity to explore how financial services could be accessed more conveniently through digital and mobile products, and consumers are now demanding financial institutions find ways to make these products the new norm, in even more efficient, easy-to-use and frictionless ways.”

Yet the move to digital banking is not without risk. “While digital-first approaches allow financial institutions to more deeply engage with customers and streamline their product delivery, a digital-first consumer is exposed to more identity fraud and financial crime threats than ever before,” says Alex Boorman, managing director of consulting at RFi. “Financial institutions will continue to be challenged by the need to simultaneously keep customers protected, sustain digital trust and deliver frictionless customer