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article imageSecurity and CX hold back digital bank account opening

By Tim Sandle     Apr 6, 2020 in Business
A survey of businesses finds that half of all respondents rate the security of their current digital account opening application process as only somewhat or not secure. These types of findings indicate why some a reluctant to full embrace digital banking.
The new survey relating to business banking trends comes from OneSpan - "The State of Digital Account Opening Transformation 2020" (who provide digital security and anti-fraud solutions) the company has undertaken its third-annual survey, looking into banking trends. The trends match those of earlier surveys, confirming that poor customer experience and security is still a barrier that is holding back digital account opening.
Digital banking is the digitization (or moving online) of all the traditional banking activities and programs that historically were only available to customers when physically inside of a bank branch, facilitating all functional levels of banking on all service delivery platforms.
The poll is based on a survey conducted of banking and security leaders, drawn from over 100 financial institutions. Among the key findings drawn from the survey are concerns about the process of opening a new account online. Here it was found that nearly half of all respondents (at 49 percent) rated the security of their current digital account opening application process as only somewhat or not secure.
Main concerns cited relate to legacy systems, manual identity verification processes, authentication friction, and an inability of the bank to detect fraudulent identities.
The main concern with the security surrounding account opening related to concern about scams and other types of fraud. By a very high margin, 85 percent of respondents said they had experienced fraud in their digital account opening process,. Furthermore, just over 50 percent of respondents cited the process of opening an account online as the primary cause of fraudulent activity taking place.
Another reason for the reticence about opening an online business bank account was that 60 percent of respondents said that poor customer experience was the another key reason, either from chatbots or in terms of direct communication with bank employees. This issue around customer service was reported to be a reason why applicants tended to drop out of the onboarding process.
More about digital banking, Greek banks, fintech, Finance
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