Digital banking is threatening the future of tellers: FICO

With the coronavirus pandemic, digital banking has been on the rise in North America as people continue to try and keep their distance from strangers.

FICO’s second-annual Consumer Digital Banking study found that 41% of consumers throughout the U.S. and Canada were more likely to turn to mobile banking applications to open a new account.

Meanwhile, 32% told the credit scoring agency they are less likely to open a new account in person at their chosen banking institution.

GEN Z GETTING A LOT OF FINANCIAL ADVICE FROM SOCIAL MEDIA: SURVEY

In a statement that supports its findings, FICO Vice President Liz Lasher said consumers who use digital banking apps are increasingly placing importance on authentication.

“As a result, consumers’ expectations have shifted, placing a higher priority on having a seamless and engaging digital experience, which includes establishing account security,” Lasher shared. “For financial service providers, this means tomorrow’s success will rely on having the right platform to deliver enhanced customer experiences, improved fraud protection, and financial crime compliance.”

According to FICO’s study, three-quarters of North American consumers are willing to provide their bank biometric data to confirm their identity when managing finances, including facial or fingerprint scanning or voice-matching. For U.S. adults, this identity authentication method is approved by 76%, while Canadian adults approved by 74%.

THIS IS HOW CREDIT MONITORING CAN HELP YOU BOOST YOUR CREDIT SCORE

Consumer demand for digital banking security is seemingly increasing while 11% of Americans and 6% of Canadians report they believe their personal information has been used to open a fraudulent account, which FICO equates to 23 million and 600,000 potentially compromised accounts in the U.S. and Canada, respectively.

When online banking systems ask account holders to use authentication methods that direct them away from the app, more than one-fifth of North American consumers told FICO they would look to a competitor for the sake of convenience.

Twenty-five percent of Americans on average told FICO they’d be willing to ditch their bank if they perceived identity authentication obstacles at their banking institution. Twenty-one percent of Canadians said the same.

4 CREDIT UNIONS TO CONSIDER WHEN REFINANCING STUDENT LOANS

Undesirable identity authentication methods include mailing or scanning and emailing documents, or visiting a bank branch in person, according to FICO’s respondents.

With COVID-19, digital banking has been on the rise in North America as people continue to try and keep their distance from strangers. And this shift has made consumers demand biometric security methods on banking apps. (iStock)

Preferred methods include uploading a selfie (U.S., 37% vs. Canada, 38%) and scanning a QR code (U.S., 41% vs. Canada, 42%) or fingerprint (U.S. and Canada, 41%) through a bank’s app. Meanwhile, North American consumers indicated they don’t mind scanning a passport or driver’s license (U.S., 46% vs. Canada, 47%) as long as they can do so within the app rather than having to email the scanned documents.

Fifty-three percent of American consumers told FICO they have their bank’s app downloaded while 57% of Canadians said the same.

“Consumers embraced the digital-first economy during the past 12 months, but how, when and what digital channels they prefer still varies greatly across demographics,” Lasher said, in a statement. “For banks, it’s critical they understand their customers and deploy solutions and policies that can operate across channels and adapt to their customers evolving preferences.”

Source:-https://www.foxbusiness.com/personal-finance/digital-banking-eclipsing-physical-services-consumers-want-increased-security-fico

RSS Latest Press Release

  • Confort Prestige | Climatisation & Chauffage Announces HVAC Services For Improved Energy Efficiency
    TERREBONNE, QUEBEC- NOVEMBER 14, 2021- Premier heating and cooling company Confort Prestige is excited to share HVAC solutions with domestic customers in the Terrebonne area. These services aim to save customers money on their heating and cooling expenses throughout the year.   Since its debut, Confort Prestige has been committed to customer service. This starts […]
  • Hundreds of Car and Truck Parts Available from Salvage Specialist
    Morganville, NJ – When it comes to finding an auto part for a foreign or domestic vehicle, Trilenium Auto Salvage usually has the answer.   The Morganville, NJ salvage specialist has hundreds, if not thousands, of parts and components at its Tennent Rd premises available.   Trilenium Auto Salvage is one of the busiest salvage specialists […]
  • Flowsent Weed Delivery Offers the Fastest Weed Delivery Service in the Bay Area
    Bay Area, CA - As it becomes easier to get cannabis in different stores and online, weed delivery in Oakland, San Francisco, and other Bay Area cities are becoming more common. People are looking for the easiest way to get their hands on high-quality, safe cannabis, and nothing beats direct to your door.    Many […]
  • Cannamazoo Now Offering the Top Cannabis Concentrates in Michigan
    What are Cannabis Concentrates, Oils, and Extracts?   Kalamazoo, MI - You may be familiar with recreational cannabis in its usual form, but have you ever tried extracts, oils, and concentrates? Each of these forms offers unique effects and benefits that smoking cannabis flowers can't provide. Simple dosing, cleaner effects, and better taste are just […]