Key stat: UK shoppers are demonstrating more awareness of and understanding around identity checks while shopping online this year, as last year they suffered from £15.3 million ($18 million) in losses due to identity fraud during the 2021 holiday season.
The data comes from FICO’s Fraud, Identity, and Digital Banking Consumer Survey, which polled 1,000 UK adults in August 2022.
Additional findings: The survey asked UK consumers about their experiences with identity checks, and why they think identity checks are important.
Best way to perform an identity check: Performing an identity check can be burdensome and time-consuming, but the survey asked participants about their preferences on how to go about checking identity.
Our take: Consumers are increasingly understanding why identity checks are important. That’s a great relief for banks, as customers are likely to be more patient with going through them. Biometric features will ease some of the cumbersome process, and the research from FICO supports findings from other reports.
FICO’s data also aligns with one of our predictions for the banking industry in 2023: We expect data security and protection, including identity protection, will become table stakes for financial service providers. Financial institutions that focus on data privacy now will gain a major competitive advantage with consumers, who will prioritize it when choosing a financial services provider.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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