PACE Findings 2019
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.