New Zealand
New Zealand New Zealand
Consumers make most of their payments by internet banking
  • 74%
    BFSI
  • 70.5%
    TELCO
  • 54.5%
    RETAIL
  • 46.5%
    BFSI
  • 39.6%
    TELCO
  • 40.7%
    RETAIL
  • A higher percentage make payments via internet banking to banks and insurance companies, telcos, and retailers, respectively, compared to the regional average
  • Impact: Anti-fraud capabilities critical to the increased digital transaction frequency and customers’ trust in banks
Australia
Australia Australia
Consumers are most satisfied with the post-fraud service of banks and insurances companies
  • More than 70% satisfaction rate compared to 59.7% on average
  • Impact: Increased trust in BFSIs
Indonesia
Indonesia Indonesia
Consumers that encountered most fraud incidents in the past 12 months
49%
34.7%

AP Average

  • 49.8% have experienced fraud at least once compared to 34.7% on average
  • Impact: Overall anti-fraud capabilities need improvement
Singapore
Singapore Singapore
Consumers have the highest trust towards government
AP Average
  • 75.5% choose government agencies, compared with 51.7% on average
  • Impact: Trust of personal data protection is centered around government agencies
Vietnam
Vietnam Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months
  • 55%
    TELCO
  • 54.5%
    RETAIL
  • 32.8%
    TELCO
  • 35.2%
    RETAIL
  • 55% and 54.5% have experienced fraud at least once in retail and telco, respectively, compared to 32.8% and 35.2% on average
  • Impact: Overall anti-fraud capabilities need improvement
Thailand
Thailand Thailand
Most Thai consumers believe speed and resolution are severely lacking (response/ detection speed toward fraud incidents)
AP Average
  • 60.5% think it is most important, compared to 47.7% on average
  • Impact: Response time as one of key factors to fraud management to retain customers and gain their trust
India
India India as standalone
Consumers have the largest number of shopping app accounts in the region
India
  • Average of three accounts per person
  • Impact: Highest exposure to online fraud
Hong Kong
Hong Kong Hong Kong
The least percentage of consumers with high satisfaction level toward banks and insurance companies’ fraud management
AP Average
  • Only 9.7% are most satisfied compared to 21.1% on average
  • Impact: effective response towards fraud incidents to be improved
China
China China
Consumers are the most tolerant toward submitting and sharing of personal data
AP Average
  • 46.6% compared to the AP average of 27.5% are accepting of sharing personal data of existing accounts with other business entities
  • Impact: higher exposure of data privacy and risk of fraud
alert
Japan Japan as standalone
Consumers most cautious on digital accounts and transactions
50.7% Actively maintain digital accounts’ validity
27% AP Average
45.5% Do not do online bank transfers
13.5% AP Average
  • More than 70% did not encounter fraud incidents in past 12 months, compared to 50% on average
  • Impact: Relatively low risk of fraud

Online spending will continue: Blending the virtual with the real

Online spending will continue: Blending the virtual with the real

Australia experienced a huge shift in the way it purchased goods and services in 2020. According to Australia Post’s December Inside Australian Online Shopping[1], November was the largest online shopping month ever recorded in our country with online purchases up 20.8% compared to the same time in 2019.

 

This trend is set to continue this year.

 

Further research released in Experian’s second Global Insights Report indicated a third of Australians anticipate their online spending habits will increase over the next 6 to 12 months.

 

For brick and mortar businesses the challenge has, and will continue to be, how to migrate the real-life experience to a virtual one.

 

Bringing the physical online

 

The logistics may on paper seem straightforward, but for independents and large retailers alike, the focus should be on consumer experience. Our research shows with increased online traffic, the bar has also been raised with just over half of Australians saying they now have higher expectations of their digital experiences. A virtual experience that matches, if not surpasses that of real life, is what could make or break a sale.

 

Let’s take a jewellery store for example. How best can they capture a wonderfully designed showroom filled with beautiful pieces sparkling brightly on a web page; how can a welcoming smile be built into a chat bot; and how can deep product knowledge and a considered, tailored recommendation be delivered online? Or an electronics store, transferring the guidance of a sales assistant online for when the choice of products can be overwhelming, and customers rely on humans to help navigate their decisioning process.

 

Consider the customer’s transition journey

 

If a customer doesn’t know a business exists online, they won’t be able to find it. Furthermore, those who are familiar with brick and mortar may have difficulty navigating to online pages or using them effectively. It’s vital to consider a strategy to migrate these existing customers over to the online platform by raising awareness and offering instructions on how they can engage with the virtual brand.

 

Speed is key

 

When a customer enters a store, they see the item they want, they purchase it, they take it home. With online there is a delay, and not just for delivery.  Our research has shown that less than half of Australian consumers are willing to wait more than 60 seconds before abandoning an online shopping cart. It takes only a click and they can shift to a competitor. Having a robust user experience from the home page to payment to delivery is essential to attract and retain customers.

 

Watertight security

 

Lastly, as consumers and businesses increased their reliance on online throughout 2020, we have also witnessed an increased number of cyberattacks on companies and individuals. This shone through in our research - 43% of Australians said they felt like they were more of a target for online fraud now than pre-COVID.

 

While businesses can be perilous to the more complex cyberattacks, protection against the smaller scale fraudsters at each stage of the customer lifecycle is entirely possible, and crucial. At the end of the day, mutual trust is required to forge healthy, long-term customer relationships and an incidence of fraud can undermine this trust and have irrevocable impacts on businesses. 

 

Making predictions for 2021 feels little novel given what happened with 2020. However, the statistics say online spending will only increase, and those businesses who can blend their brick and mortar with a virtual presence and continue to invest in this experience, while ensuring the best online security for themselves and their customers, will set themselves up for success.

 

Take a look at our second Global Insights Report and infographic here.

 

If we can assist you in any way, please get in touch with us using the form below.

 

By Mathew Demetriou, General Manager Decision Analytics, Experian A/NZ

 


 

[1] Australia Post’s December Inside Australian Online Shopping update report

Read full article

Mathew Demetriou

By Mathew Demetriou 02/04/2021

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