FICO Survey: Banks' Identity Checks Have Pushed One in Four Brits to a Competitor

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FICO

08 Jun, 2021, 08:00 GMT

FICO survey underscores the need for flexible customer journeys and the role biometrics can play

LONDON, June 8, 2021 /PRNewswire/ --

Highlights:  

  • 23 percent of UK respondents would go to a competitor if asked to visit a branch or post documents as part of applying for a financial account 
  • Younger age groups are less tolerant of disruption in opening accounts
  • 79 percent are open to some use of their biometric data for security
  • Biometric familiarity increasing but banks must explain how it is used 

New data from FICO, the global analytics software provider, reveals the levels of consumer tolerance to new account opening security checks. With 23 percent of UK respondents admitting to going to a competitor if asked to visit a branch or post documents as part of the digital application process, it's clear that financial services providers need to get the balance right on security checks and a smooth customer journey.

More information: https://www.fico.com/en/latest-thinking/ebook/united-kingdom-consumer-survey-2021-identity-proofing-and-digital-banking

According to the FICO data, if asked to visit branches or post documents, only just over half of customers (52 percent) will complete the process as soon as possible, while nearly one in three (31 percent) will give up completely or go to a competitor.

The risks of abandonment continue when customers are asked to scan documents and email them or use an identity portal. When asked to do so, 17 percent have gone to a competitor, and 8 percent have quit the process.

Generation Y Wants to Stay Digital

Consumers between the ages of 25-34 – millennials – are the least tolerant to disruption caused by the ID checking process. 42 percent would abandon the process if it required them to mail documents or visit a branch. If required to scan and email documents or use a separate identity portal, 35 percent would leave the application.

"Our data shows intuitive but flexible customer journeys are required," said Matt Cox, vice president for fraud in EMEA at FICO. "Some people are happy to provide selfies, others want to scan documents. What individuals can do – or can be encouraged to do – is personal. This makes intuitive apps and education crucial if financial services providers are to be successful at new customer acquisition."

FICO has released two podcasts for the UK featuring FICO's fraud experts and Iona Bain, founder of the pioneering Young Money Blog, the UK's foremost blog dedicated to young people's finances: Identity Theft, COVID-19 and Digital Acceleration and Digital Natives, Disruption and Application Abandonment.

About FICO  
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. Learn more at https://www.fico.com  

FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.  

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