Businesses with priorities to acquire and retain customer loyalty should be prioritizing technology investments that improve the digital customer experience as well as prevent fraud and better manage consumer credit risk. In our latest survey of consumers globally, we found that the increase in online activity between June and October 2020 has sustained itself for the past year with little sign of digital fatigue. Consumers report that they’re online 25% more today than they were just a year ago.
Many lenders and retailers have transformed their operations and met consumers’ needs for accessing goods and services online throughout the pandemic; however, customer expectations for their digital experience may be outpacing those efforts. Our same study found that customer loyalty toward businesses during the pandemic was at an all time high, but now starting to slip. 61% of consumers reported continuing to engage with the same companies they did a year ago, down 6% in twelve months. Consumers cite security, privacy, and convenience as their top priorities for engaging online.
As companies adopt more digital processes and automation to deliver on the real-time financial transactions of their customers, they’re looking to access advanced capabilities for more accurate fraud prevention and credit risk management. Globally, the adoption of artificial intelligence in credit risk decisions is trending up, and 60% of businesses intend on increasing their analytics budgets. Similarly, 65% of companies are increasing their fraud prevention
Scalable solutions are creating opportunities for businesses of all sizes to compete for the digital customer. What this means to a mid-size bank, credit union, building society, Fintech and neo-bank is greater accessibility to cloud-based credit risk decision management software. Decades of decisioning best practices coupled with leading edge analytics and technology can help more companies achieve their growth ambitions by attracting, acquiring, and engaging more customers. In fact, confidence in on-demand, cloud-based decisioning has grown to 81%, up from 72% in the past twelve months.
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Other key insights:
- Consumers report that they are online 25% more now than they were just a year ago
- 42% of consumers have increased concern for the safety banking and shopping transactions
- 61% of consumers say they’re transacting with the same businesses, down 6% from last year
- Consumers rank their priorities online: security #1, privacy #2, convenience #3
- Business adoption of advanced analytics has increased over last year – AI is up from 69% to 74%
- Confidence in on-demand, cloud-based credit risk decisioning is trending up from 72% to 81%
- Businesses globally say improving digital engagement and customer acquisition is their top priority
- 75% of consumers feel the most secure using physical biometrics
- #1 Digital investment is decisioning software, followed by AI and digital enablement for staff
- Businesses plan to increase budgets for fraud prevention (65%) and consumer credit analytics (60%)
In our latest research, we surveyed 3,000 consumers and 900 businesses across Australia, Brazil, Germany, India, Italy, Japan, Singapore, Spain, United Kingdom, and United States. This report is part of a longitudinal study and published series that started in June 2020 through October 2021 exploring the major shifts in consumer behavior and business strategy throughout Covid-19.
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