How Seriously Do Banks Take Educating Their Customers Against Risky Behaviour?
Aite Group has just published a research report titled “Global Consumers: Losing Confidence in the Battle Against Fraud”, based on a global survey conducted by ACI Worldwide.
There are many interesting statistics that have come out of this survey from a global perspective, but as I work across the EMEA region, let me focus on the fascinating and, dare I say, somewhat shocking EMEA figures.
There are numerous questions and results related to risky behaviour that really caught my eye, but let's begin with:
- In the last 5 years, have you made a note of your PIN and carried it with you or kept it with your card?
Italy has come out on top at 20%. That isn’t a typo. That’s 1 out of every 5 people! The UAE isn’t far behind at 17%! Staggeringly high. Only the UK and Sweden have a downward trend over recent years.
- In the last 5 years, have you used online banking or internet shopping without security software or on a public computer?
Russia leads the way here with 37%! Only the Netherlands and the UK are below the 10% mark.
- In the last 5 years, have you thrown papers or documents with account numbers (e.g., bank statements) in the trash bin?
Most countries show figures of greater than 20%, with South Africa leading at 31%. Poland, UK and the Netherlands are the lowest, averaging around 15%.
In reading through report and in particular the EMEA statistics, I picked up that the UK and Netherlands responses appear to be better in comparison to Russia, UAE, South Africa and Italy when looking at overall risky behaviour. To confirm this, I generated a league table based on how each country is ranked against each question and scored them accordingly.
The EMEA Risky Behaviour League Table
1. Russia (riskiest consumers)
3. South Africa
10. Netherlands (less risky consumers)
As we can see, based on consumer responses, Russian, UAE and South African consumers appear to be on the riskiest list and the Netherlands and UK consumers are far less risky – why is this?
I can’t speak for all counties that participated in the EMEA poll, but as I reside in the UK and have UK bank accounts, I’m fully aware of how UK banks devise consumer anti-fraud education strategy. Most British Banks take consumer education against fraud and risky behaviour very seriously and invest heavily. There is a sense of ‘help me help you’ mentality from UK banks and it looks like their consumer education strategy to avoid risky consumer behaviour is working well here.
Consumers were also asked if they have confidence in their financial institution to protect them from card fraud. Based on the response, ‘Yes, to an extent, they’re doing what they can’, the UK comes out on top with 72% followed by the Netherlands and Germany, each with 66%.
There is a possible counter argument if we look at the chart, ‘Percentage of respondents who have experienced card fraud in the past five years’. The UK comes in third behind UAE and South Africa (within EMEA).
Education Education Education
According to the report, less than one-third of consumers across EMEA have absolute confidence that their financial institution can protect them from fraud, but there is a contradiction here due to how some consumers behave and don’t protect themselves.
Having worked in fraud prevention roles for over 15 years, specifically in fraud strategy, educating customers against risky behaviour and how they can protect themselves (and the bank) is paramount. To me, the evidence from the report clearly shows that consumer education is falling short within specific EMEA regions and requires improvement.
I like to think I’m vigilant when it comes to keeping myself protected and fully aware of the do’s and don’ts, but having looked at some of the questions put to consumers, I confess; I’m guilty of one or two of them. Do I leave my smartphone unlocked when not using it – guilty! But this is something I’m about to change.
You can view and download the full report here.
Related Blog Posts
Women in Payments: It’s Time to Get Out of Your Comfort Zone
As we gear up for Money 20/20 U.S next month, we are excited to shine a spotlight on Natalia Ruiz, manager, Payments Risk Solutions at ACI Worldwide, who was recently selected to be part of the 2019 Rise Up Academy. This global program created by Money 20/20 addresses the gender imbalance in leadership positions within the Financial Services and Fintech industry.
Universal Confirmations: Get Ready for 2020
With the arrival of universal confirmations, we sit down with some industry experts to find out more about what impact this will have on transforming cross-border payments. We’re welcomed by Fabien Depasse - Head of SWIFT gpi Customer Success at SWIFT and Craig Ramsey - Head of Real-Time Payments at ACI Worldwide.
How to be a Payments Trailblazer – The Seven Habits of Highly Innovative Organizations
The new Culture of Innovation Index from Ovum and ACI identified segments—from banks to intermediaries to merchants to corporates—at the cutting edge (of innovation) across the payments ecosystem. But what is most notable about those segments that have reached ‘trailblazing’ status is the apparent lack of commonality between them. No one segment, nor one region fosters better innovation. In fact, what’s driving these segments/organizations to be best of breed is their own culture of excellence. The only thing they have in common is their attitude.
How will SWIFT gpi Impact Latin America?
As the world continues to transition toward real-time, and technology continues to evolve, new challengers are disrupting the market with value propositions including real-time cross- border payments. The competition has inspired SWIFT to work with the industry and challengers to create the Global Payments Innovation (GPI) program, which radically changes the way banks interact with their correspondents and offers improved transparency and customer service to their customers.
The Middle Eastern payments revolution: Getting Real-Time Ready
The Middle East is developing quickly and considerably. The population has surpassed 410 million and a number of nations, such as Saudi Arabia and the United Arab Emirates (UAE), represent some of the world's most innovative economies. The region has become synonymous with the rise of large infrastructure developments and technological innovation, while tourism continues to grow - 1.4 billion people visited in 2018 alone.
Why India's Payments Players Need to Fight Fraud with Machine Learning
By 2023, experts are predicting 60 billion UPI (Unified Payments Interface) transactions annually, accounting for more than 50 percent of India’s total digital payments transactions. And it’s estimated that today nearly 50 percent of all real-time payment (RTP) transactions globally are processed in India. It’s an exciting market for payments innovation, with a wide range of digital overlay services available to consumers and merchants, thanks to the introduction of UPI.
The Untapped Opportunity of Machine Learning for Real-Time Payments Fraud Prevention
Artificial Intelligence (AI) is among the buzzwords of the moment, but when it comes to tangible innovations that have the potential to drive rapid ROI, machine learning should be part of every bank or processor’s strategy. No matter the size of the institution.
European Banks Have the Right Tools to Stay Ahead – But Will Big Tech Overtake?
Open banking and immediate payments have come a long way, according to the panelists who joined me during the ‘Open Banking in an Instant World’ session at EBAday in Stockholm recently. The building blocks are now falling into place through the introduction of national and regional schemes, open banking initiatives, regulations such as PSD2 and the acceptance and use of APIs.
How UPI is Driving India's Shift from Cash to Digital Payments
The Indian economy has traditionally been heavily dominated by cash, while experiencing low adoption of various online payment systems including National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS) and inter-bank mobile payments. The dominance of cash is evidenced by the ratio of cash withdrawals at ATMs vs debit card usage at Point of Sale (POS)—ATM transaction volume is more than 2x greater than POS.
Regulating for Real-Time: The Role of Government in Payments Modernization
Dr. Leo Lipis and Craig Ramsey, Head of Real-Time Payments for ACI Worldwide, continue their discussion on real-time payments and the findings of the new white paper, Get More from Real-Time.