The Global Analytics Software Leader FICO Uncovering the latest global consumer fraud the studyIt highlights how complex identity verification procedures are impeding the progress of digital banking in Singapore.
Many consumers are opting to apply for mortgages and loans in person due to the cumbersome digital experience of opening an account via a mobile app or website.
A survey by a global analytics software leader reveals that Singapore consumers prioritize strong fraud protection, ease of use and value when choosing a financial account.
Nearly two in three consumers (63%) expect to answer 10 questions or fewer when applying for a personal bank account, and will abandon the application if this isn’t the case.
About one in three (29%) will abandon their application if asked more than five questions. Moreover, about one in three Singaporeans will give up on applying for a personal bank account after 10 minutes, regardless of the number of questions.
Identity challenges have become more frequent over the past year, with 53% of respondents saying they have had to challenge their identity more when logging into their bank account and 48% saying they have had to challenge their identity more when making online purchases.
The increased identity checks by Singapore banks are a direct response to the significant problem of identity theft in the country.
Survey participants ranked the financial crimes they were most worried about
Despite the rise in identity theft, only 6% have confirmed that their personal information has been fraudulently used to open an account, while 25% suspect it.
Frustration with identity verification processes is affecting consumer behavior, with one in five bank customers abandoning or reducing the use of existing personal bank accounts or credit cards due to tedious and time-consuming verification.
Singaporean consumers show different levels of patience with various account opening procedures.
They are most likely to abandon personal bank accounts, insurance policies and savings accounts (25% each) because identity verification is complicated or time-consuming.
Additionally, one in four (24%) have abandoned a credit card application, and nearly one in five (17%) have abandoned a mortgage application for the same reason.
of people have stopped or reduced use of existing accounts because identity verification was difficult or took too long
For certain financial products that require thorough due diligence, some consumers are willing to tolerate a detailed process, but expectations for ease of use remain high.
When it comes to digital applications, the most prominent benefits cited were the ability to open an account at any time (65%) and speed (59%).
Similarly, Singaporeans cited the ability to open an account at any time via a provider’s website (64%) as the biggest advantage, followed by speed (60%).
However, security concerns remain, with two in three Singaporeans (68%) believing in-branch applications are more secure than digital channels.
Nearly two in five (37%) cited security as a benefit of applying for a digital account via a provider’s app, compared with just over one in three (35%) who cited security when applying via a provider’s website.
The survey was conducted in November 2023 by an independent research firm adhering to research industry standards, and surveyed 1,000 adults in Singapore and approximately 12,000 consumers in other countries, including Canada, the United States, Brazil, Colombia, Mexico, Philippines, Indonesia, Malaysia, India, Thailand, the United Kingdom and Spain.
Aashish Sharma
“Consumers are looking for smarter onboarding processes and identity checks that don’t compromise security or fraud prevention. They want smarter processes, not riskier ones.”
Technologies such as improved identity verification, transaction history analysis, open banking and government databases can save time without compromising security. Finding the right balance between security and ease of use is key, especially for high-value products and interactions.”
“FICO is committed to delivering the highest level of customer satisfaction,” said Aashish Sharma, APAC segment leader, Risk Lifecycle and Decision Management, FICO.
