Financial services report webinar v4
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What are the trends transforming the financial services industry in 2019? And how can businesses stay relevant and profitable in 2020? Get answers to these questions and more as we walk through the highlights of the 2019 iovation Financial Services Fraud and Consumer Trust Report. Join iovation, a TransUnion company, as we provide key findings from analyzing 5.9 billion financial services transactions protected by iovation, 1604 consumer interviews both in the U.S. and the U.K., and the impact of fraud on consumers’ perceptions and buying decisions. Through our conversations with industry leaders and interviews with consumers, we answer three main questions in the report, and expand upon them in this webinar: How is fraud changing for banking and lending? As consumers shift to mobile, are fraudsters following? Is consumer trust a priority over consumer experience? Register today and then share back with your team, these new findings on the key market drivers that will shape the financial services industry in 2020.
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Financial services report webinar v4
- 1. Presented by: Molly Hetz, Product Marketing Manager Highlights Webinar 2019 Financial Services Fraud and Consumer Trust Report
- 2. © iovation. All RightsReserved 2 iovation was founded with one mission: To help businesses deliver a safer and more valuable digital experience to consumers.
- 3. © iovation. All RightsReserved 3 1 billion worldwide consumer records 650 million consumer credit history records 50+ petabytes of data 33 countries 4.8 billion monthly data updates 6 billion devices seen by network 45 billion total transactions protected 26 million transactions protected per day 66 million fraud reports placed by network 35,000 websites and apps protected Unifying personal and digital data Providing a single customer view to build a defined identity strategy
- 4. © iovation. All RightsReserved 4 5.9B Financial services transactions protected in the past year 23M Fraudulent financial services transactions stopped this past year 1.5M Fraud and abuse reports placed by iovation customers in the past year Of all traffic is from financial services Risky transaction stopped in past year 60% 142 M Protecting the Financial Services industry
- 5. © iovation. All RightsReserved 5 2019 Financial Services Fraud and Consumer Trust Report Adapting to Digital Transformation in the Financial Services Industry Requires an Innovative Approach to Fraud Prevention and Customer Authentication. 18-34 year old have opened an account in the past 2 years Traffic in 2019 came from mobile devices 61% 92% 39% Have have closed a financial services account due to fraud concerns.
- 6. 6© iovation. All RightsReserved Trust is a differentiator 50% of risk transactions came from mobile devices in 2019 Mobile fraud has grown by 138% since 2017 Fraudis goingmobile 3 out of 5 consumers didn’t open an online account via mobile because of the hassle and slowness of the application form Financialservices must investin digital 39% have closed an account due to fraud concerns 76% said most important factor is security and privacy Three Market Drivers in Financial Services
- 7. © iovation. All RightsReserved 7 Consumer Insights Survey 1,604 Consumer Surveys • 802 United Kingdom • 802 United States
- 8. © iovation. All RightsReserved 8 consumers conduct banking transactions online at least once a month 9/10 Of 18-34 year old are very interested in a banking app that prevents fraud of 18-34 year old have closed an account due to fraud concerns would be interested in using an app that notifies them of unusual account activity consumers have created at least one financial services account online in past 2 yrs 8/10 55% 64% 4/5 are willing to switch for advanced security protocols and that make security easier for them 51%
- 9. © iovation. All RightsReserved 9 Consumershavea highlevel of awarenessof fraudandanti-fraudtechniques. Preferenceforsecurityprotectionmethodsis divided.Tomeetconsumerexpectations,providersmustprovide optionsforauthenticationmethods. Marketopportunityforfinancial servicescompaniesto offerfraud-mitigatingpushnotificationsis high. 98% 97% 96% 91%Identity theft Credit cardfraud MFA One–time passwords Answering?s Facial & finger recognition One-time passwords Receivepushnotifications whentheytransact Receivepushnotifications whenthereis unusual activity 35% 29% 26% 42% 37%
- 10. © iovation. All RightsReserved 10 Financial Services Digital Transformation
- 11. © iovation. All RightsReserved 11 • Desktop transactions have decreased from 71% in 2014 to 40% in 2019 • Mobile traffic (which includes both mobile web and mobile app) transactions have increased from 28% in 2014 to 61% in 2019 • Mobile app usage grew at twice the rate of mobile web usage, from 15% in 2014 to 39% in 2019 • Mobile web transactions went from 14% in 2014 to 22% in 2019 Financial Services Consumers’ digital behavior is changing: insights from financial services providers over the past 5 years
- 12. © iovation. All RightsReserved 12 Fraudsters Go Mobile
- 13. © iovation. All RightsReserved 13 Growth in mobile usage by fraudsters in financial services • Mobile growth seen in iovation’s global traffic from 2017 has increased 30% (46% to 60%) • Today, 50% of suspected fraudulent transactions seen by iovation are from mobile devices, an increase of 138% since 2017
- 14. © iovation. All RightsReserved 14 Customer Experience as Market Differentiator
- 15. © iovation. All RightsReserved 15 • Eliminate abandonment for new account creation due to high friction forms • Transparently use the phone as a factor of authentication for mobile transactions • Assess risk of mobile numbers used for SMS or real time payments Mobile is the top digital channel for customer interactions Consumers demand seamless and secure access to their accounts from any device, at any time.
- 16. © iovation. All RightsReserved 16 How are you showing customers that your business is keeping them safe?
- 17. © iovation. All RightsReserved 17 Trust and Security Influence Financial Services Buying Decisions
- 18. 18© iovation. All RightsReserved Remain competitive by fostering customer trust 3 out of 4 reported that the most important factor when choosing a financial services account is that it keeps their information secure and private 2 out of 3 consumers are willing to switch to companies that have more advanced security protocols and that make security easier for them 3 out of 4 feel that keeping their personal information private and having excellent security and fraud prevention protections in place are must-have decision factors 7 out of 10 rate trustworthiness as a must-have when deciding which financial institution to use
- 19. 19© iovation. All RightsReserved Q&A
- 20. 20© iovation. All RightsReserved Thank You
Editor's Notes
- For the past 15 years iovation has worked with financial services providers to secure their online operations. Since we began, we’ve protected over 45 billion transactions and helped our banking and lending clients shut down countless fraud rings
- Together with Transunion- we’re unifying personal and digital identity into single customer view to build a defined identity strategy. Our personal and digital fraud solutions lead the industry in stopping fraud and making the internet a safe place for brands and consumers.
- In this webinar, we’ll discuss the results of our analysis of 5.9 billion financial services transactions protected by iovation. Surveys with 1,604 consumers in the U.S. and the U.K. Focus on consumers’ perceptions and buying decisions when selecting a financial services company. This blog post will highlight some of the key findings we found in our report.
- We’ve uncovered 3 market drivers in financial services. Trust is a differentiator Fraud is going mobile Financial services must invest in digital We’ll begin by hearing from the 1,604 consumers we surveyed across the US & UK.
- Between September 17th and 22nd, 2019, iovation, a TransUnion Company, collaborated with Insights West to survey 802 consumers from the United Kingdom and 802 consumers from the United States. The survey focused on their behavior related to online usage of financial services products. Questions focused on the awareness of fraud techniques and their overall trust in financial services providers to keep their information protected and secure.
- Online banking plays a prominent role in meeting the banking needs of U.S. and U.K. adults ages 18-74. 9 out of 10 consumers conduct banking transactions online at least once a month In the past 2 years, 8 out of 10 consumers have created at least one financial services account online When security and fraud demands are not met, consumers are willing to take action and switch institutions 55% of 18-34 year olds have closed a financial account online in the past 2 years due to security and fraud concerns 64% are willing to switch to companies that have more advanced security protocols and that make security easier for them Interest in a banking app that helps prevent fraud is high 4 out of 5 consumers surveyed (81% U.S. and 74% U.K.) say they would be interested in using an app that notifies users of unusual account activity and seeks approval of such transactions 51% of consumers surveyed ages 18-34 are very interested in a banking app that prevents fraud. The older the consumer is the less they care about this functionality (48% ages 35-54 and 37% ages 55-74.)
- Consumers have a high level of awareness of fraud and anti-fraud techniques. There is near universal awareness of identity theft (98%), credit card fraud (97%), multi-factor authentication techniques (97%), and the use of one-time passwords (96%) 93% are aware of account takeover fraud 91% are aware of card not present fraud 90% are aware of synthetic identity fraud Preference for security protection methods is divided. To meet consumer expectations, providers must provide options for authentication methods. Answering security questions is the most preferred security approach overall (35% prefer), followed closely by fingerprint/facial recognition (29%), and delivering one-time passwords via text (26%) Preference for answering security questions is mainly driven by those aged 55-74 (44% prefer), as well as lower income consumers (39% prefer) Younger consumers ages 18-34 and high income earners ($100K+) are more likely to prefer biometrics such as fingerprint and facial recognition methods (35% and 36%, respectively) Market opportunity for financial services companies to offer fraud-mitigating push notifications is high. 80% of consumers say they would be interested in using an app that notifies them of unusual account activity and requests approval of such transactions. However, these types of push notifications are not currently prevalent: 42% of online banking consumers receive a push notification every time they make a transaction, while 37% receive a push notification when there’s unusual activity.
- Consumers around the globe are creating and managing their financial services accounts online with increasing preferences for mobile platforms.
- Consumers aren’t the only ones who prefer mobile devices. Fraudsters are using mobile platforms in ever increasing numbers and fraud controls don’t always match the more mature countermeasures put in place for traditional PCs. Fraudsters are forever adapting their techniques trying to stay ahead of countermeasures and it is tough for financial services companies to keep up. In the 2018 Fraud Detection and ID Verification in Financial Services report with Forrester Consulting, TransUnion found that 70% of providers agree that fraudsters are one step ahead, constantly refining their techniques.
- Implementing the right strategy that balances security and customer experience on mobile devices can set your company apart. Establish an omnichannel method of authorizing payments or other account activities right in your mobile app Reduce the amount of contact center traffic due to time-intensive password resets
- Engage audience in dialogue. Push notification- for every transaction Card block functionality
- Of the 1,604 consumers interviewed, 3 out of 4 reported that the most important factor when choosing a financial services account is that it keeps their information secure and private. Privacy, security and trust are the most important criteria when choosing a financial institution. Although consumers have a high level of trust in their financial institutions, when security and fraud demands are not met, they are willing to take action and switch institutions.
- Open up for questions.