Financial institutions are prioritising customer experiences and fraud reductions as the demand on remote account opening has increased, a study from cybersecurity company OneSpan claims.
The report also found that 85% of respondents experienced fraud in their digital account opening process and over 50% cited the process itself as the cause.
Nearly three-quarters (72%) of respondents said they were planning on reducing fraud and losses related to application fraud, account takeover and synthetic identities. Worryingly, 49% stated their current security on digital account opening was only somewhat or not secure.
The information comes in a new report titled “The State of Digital Account Opening Transformation.” Information Security Media Group and OneSpan interviewed banking and security leaders in over 100 financial institutions.
One of the other findings was that 80% of respondents claimed streamlining the process to improve the customer experience was one of their objectives this year. Furthermore, 60% of participants agreed that poor customer experience was the top reason applicants dropped out of the process.
OneSpan CEO Scott Clements said “The digital revolution has shifted the way consumers want to engage with their financial institutions, away from in-person toward immediate and convenient remote transactions.”
“There no longer needs to be a trade-off between security and a positive customer experience – partners like OneSpan enable banks to deliver remote transactions, including digital account opening, without sacrificing security.”
Finally around half of the respondents claimed legacy systems, manual identity verification processes, authentication friction and the inability to detect fraudulent identities were key reasons on why they failed to deliver digital account opening. The majority of respondents said they would now be investing in behavioural biometrics, digital identity document verification and electronic signatures to boost customer experience and lower fraud.
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