Customers Value Fraud Protection When Opening New Account

Fraud protection is one of the main considerations for consumers when choosing a new financial service provider, according to a FICO survey.

The report found that 69% of consumers rank good fraud protection in their top three considerations when opening an account, with 32% of consumers ranking it as their most important consideration.

The growing need for increased security is also leading to more customers choosing a traditional brick-and-mortar bank to open a new account over an online alternative.

According to the survey, only 28% of app users and 24% of website users reported finding the information and advice they need as an advantage of using an account online, compared to 65% rating access to advice and information as an advantage of using a branch.

This suggests that face-to-face interactions strengthened by personalized experiences can lead to better outcomes for customers, according to FICO.

Adam Davies, vice president of product management at FICO, said:  “Providing a curated and personalized customer experience, whether in digital channels or in branch, can not only build trust but could reduce customer churn and lead to better outcomes that lower fraud losses.”

The report also revealed that customers expect a fast service with nearly 70% of customers expecting to spend less than 30 minutes opening a checking account.

Meanwhile, almost a quarter (24%) of consumers will abandon the application if the identity verification process is too time-consuming.

Another source of frustration stems from the number of questions asked during the application process, with 51% saying they are only prepared to answer up to 10 questions.