Avoid the Segmentation Trap

New Zealand
Consumers make most of their payments by internet banking

74%
BFSI
70.5%
TELCO
54.5%
RETAIL

AP Average

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

Observations

Focus will be on additional analytics and more fraud automation.

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

Observations

BFSI have the most superior capabilities in fraud management–in speed of detection, accuracy, and contextualization.

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

Observations

Spurt in digital activity in the recent past has initiated investment in new technologies (i.e., robotics, AI, machine learning, biometrics) for better fraud detection and improved contextual marketing. The industry is working in collaboration with third-party agencies on alternative data sources, and is open to work with fintech companies.

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

Observations

BFSI seeks to increase consumer trust by investing in data quality and data management issues, and in new technologies (e.g., AI, biometrics).

Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months

55%
TELCO
54.5%
RETAIL

AP Average

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

Observations

The rapid deployment of fiber to the home and LTE mobile broadband is accelerating the need for customer analytics and collections and fraud management by telcos; retailers are most concerned about employee fraud, because ofiine is a larger sales channel.

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

Observations

Companies are generally weak in fraud management, but could be inﬂuenced by customers being more tolerant of fraud.

India as standalone
Consumers have the largest number of shopping app accounts in the region

Average of three accounts per person
Impact: Highest exposure to online fraud

Observations

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

Observations

Majority of companies realize that they have moderate capabilities in fraud detection.

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

Observations

Companies have moderate capabilities in fraud detection, but majority believe that improvements are required in areas of fraud resolution for better assistance to victims of fraud as consumers increasingly face more fraud risks.

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

Observations

Jan 12 2018 /

Experian

Avoid the Segmentation Trap

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