1 in 2 Indians Abandon Bank Account Opening If Process Is Cumbersome Shows Study
Mumbai: A cumbersome verification process would result in more than half (58 per cent) of Indians abandoning a savings account application if it required answering more than 10 questions, revealed the FICO Global Consumer Fraud Research report released on Wednesday.
Consumers in India have a low tolerance for inefficient digital experiences when opening an account via a mobile app or website, showed the study. The ease of use is the top priority for Indians, followed by fraud protection and then value.
Three in five consumers expect to answer 10 questions or less or they will abandon a savings account application. Identity checks are on the rise but two in five Indians will stop or reduce the use of existing personal bank accounts and credit cards if the identity verification experience is poor, showed a study by FICO, a global analytics software company.
“Indian consumers are clearly embracing digital banking, but they demand a seamless and hassle-free account opening experience,” said Aashish Sharma, APAC segment leader for risk lifecycle and decision management at FICO. “Our research indicates that financial institutions need to simplify these processes to retain customers and enhance satisfaction.”
The survey found that “Friction Frustration” exceeded “fraud worries”.
In the past year, nearly seven in ten Indians have noticed more identity checks when they logged in to bank accounts (64%) or make an online purchase (67%). This increase in identity checks by Indian banks is a direct response to the significant issue of identity theft in the country. Alarmingly, one in ten consumers has either confirmed (13%) or suspects (12%) that their identity has been fraudulently used to open an account. Despite this, frustration with identity checks alter consumer behaviour.
Additionally, only 16 per cent of Indian consumers feel comfortable opening a mortgage account through digital channels, while a significant 34 per cent prefer to apply for personal loans in person at a branch, rather than opting for online alternatives.
When asked about the benefits of opening an account digitally – via the provider’s app or website — ease of use was identified as the top advantage (73%) followed by speed (68%). In contrast, three in four (75%) Indians believe in-branch applications offer better security, with only three in five (61%) counting security as a benefit of digital account applications.
“Consumers expect banks to save them time by leveraging technologies like improved identity verification, transaction history analysis, open banking and government databases,” added Sharma.
