PACE Find­ings 2019

Banking Frontiers - - Consumer Insights -

FIS’ an­nual Per­for­mance Against Cus­tomer Expectatio­ns (PACE) Sur­vey 2019 of In­dian con­sumers rates the per­for­mance of bank­ing providers against 10 key per­for­mance in­di­ca­tors. Some of the key find­ings of the sur­vey:

Dig­i­tal trans­ac­tions are grow­ing, so are cy­ber­crime, iden­tity theft

Dig­i­tal trans­ac­tions - es­pe­cially around on­line, mo­bile and per­son-to-per­son (P2P) pay­ments - con­tinue to take an ever-big­ger role in defin­ing the bank­ing ex­pe­ri­ence and adoption. At the same time, how­ever, fi­nan­cial fraud is in­creas­ing. In fact, data shows a cor­re­la­tion be­tween the adoption of mo­bile apps and dig­i­tal pay­ments and the rate of fraud. For ex­am­ple, 96% of In­dian con­sumers who were vic­tim­ized by fraud in the last year switched from us­ing cash and cards for pay­ments to us­ing a mo­bile app.

Trust in banks may fal­ter as fraud surges

Fi­nan­cial fraud has gone from bad to worse, with the share of vic­tims dou­bling to 37% of re­spon­dents and all age seg­ments fall­ing vic­tim to fraud­sters. While In­di­ans have em­braced dig­i­tal trans­ac­tions, they have yet to learn the do’s and don’ts of shar­ing per­sonal in­for­ma­tion, and so­cial en­gi­neer­ing and phish­ing emails are ram­pant. ATM skim­ming is also com­mon, which may be con­tribut­ing to the rapid adoption of mo­bile pay­ments, potentiall­y cre­at­ing a circle of dis­trust.

Fraud is also wreak­ing havoc on bank­ing op­er­a­tions, but the Re­serve Bank of In­dia has taken steps to ad­dress it and cre­ate aware­ness. In this land­scape, bank­ing providers need to in­vest sub­stan­tially in se­cu­rity, fraud pre­ven­tion and cus­tomer ed­u­ca­tion or risk a sub­stan­tial se­cu­rity breach and ir­repara­ble dam­age to their rep­u­ta­tion and brand.

Just as im­por­tantly, it can also im­pact trust­wor­thi­ness, which is

Mo­bile pay­ments are now main­stream

While cash and cards are still the pre­ferred way to pay, mo­bile pay­ments are rapidly gain­ing trac­tion, es­pe­cially among GENYERS. Con­ve­nience and a user-friendly in­ter­face, cou­pled with rapidly im­prov­ing, low-cost mo­bile data con­nec­tiv­ity and mer­chant ac­cep­tance, are driv­ing the growth of mo­bile pay­ments. Mo­bile wal­lets that of­fer cash back and other in­cen­tives are also spurring adoption. The gov­ern­ment is pro­mot­ing in­stant pay­ments tech­nolo­gies. UPI 2.0 is a boon for mer­chants and moves mo­bile pay­ments into the small and medium en­ter­prise seg­ment. In­dia is far ahead of US, UK and Ger­many in mo­bile pay­ment adoption. con­sumers’ top pri­or­ity when choos­ing a bank. How­ever, banks can earn cus­tomers’ trust if they fo­cus on safe and se­cure trans­ac­tions, fraud pre­ven­tion and pri­vacy of per­sonal in­for­ma­tion.

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