New Zealand
New Zealand New Zealand
Consumers make most of their payments by internet banking
  • 74%
    BFSI
  • 70.5%
    TELCO
  • 54.5%
    RETAIL
  • 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
Australia
Australia 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
Indonesia
Indonesia 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
Singapore
Singapore 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
Vietnam
Vietnam Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months
  • 55%
    TELCO
  • 54.5%
    RETAIL
  • 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
Thailand
Thailand 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
India
India India as standalone
Consumers have the largest number of shopping app accounts in the region
India
  • Average of three accounts per person
  • Impact: Highest exposure to online fraud
Hong Kong
Hong Kong 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
China
China 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
alert
Japan 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

Get help to identify those facing financial hardship

Get help to identify those facing financial hardship

It does not need repeating that 2020 has been an incredibly challenging year, with many people and businesses feeling undue financial pressures. In particular, businesses that provide services which are paid for in instalments, or on a subscription basis, will undoubtedly have encountered customers struggling to make ends meet as non-payment or part-payment can be an obvious sign of hardship.

 

Many customers may hold a feeling of anxiety and discomfort towards admitting they are facing financial hardship. Businesses, therefore, should take a proactive and customer-centric approach in order to identify and support those in real need of their assistance.

 

Spotting those in need

 

Experian works extensively with Local Government and through this work we have seen that many of those at risk of financial hardship can often be the last to ask for help. Due to either embarrassment, adopting a wait and see approach or even a lack of understanding that help is available, this vulnerable group can represent a large contingent of an organisation’s customer base.

 

The ability for an organisation to pre-emptively reach out and offer assistance through discounts, delayed payment options or downgraded services can make all the difference to securing a long-term customer and ensuring cash flows remain predictable and constant.

 

Audience profiling for financial hardship in action

 

Experian has partnered with one of the largest utilities providers in Australia to help them understand the financial health of their customers. The project, which involved detailed audience profiling and data enrichment, would provide the organisation with the key indicators needed to better assess which clients needed their support most.

 

During the profiling exercise a customer was identified due to the irregularities in their water usage versus previous months, where it had increased dramatically. The utilities provider contacted the customer to enquire about their water usage and the health of their finances.

 

During the conversation it became very apparent the customer had made no major changes to their water usage and was nervous about the impending bill. The utilities provider was able to suggest a free pipe inspection during the call as any leak would explain the sharp increase in usage.

 

The inspection took place and a leak was found. It was repaired, and the customer was afforded significant bill relief due to the leak driving up the perceived usage. Truly a fantastic client outcome all round.

 

Support clients, protect revenues

 

It typically costs five times more to acquire a customer than to retain an existing one. Losing a customer now because they were not shown support during this time of uncertainty can likely mean they will just not return. Therefore, the incentive for businesses to help their customers is not just humanitarian but financial.

 

Another issue is the possibility of customers ‘masquerading’. This is where, typically more savvy customers, will attempt to take advantage of goodwill and hardship support mechanisms to benefit themselves. By not separating those who are in actual need versus those who would like to take advantage of a generous concession, a company can quickly find themselves in a difficult and unprofitable situation.

 

Using key indicators of financial hardship

 

A number of indicators are often needed to determine financial hardship. The difficulty from the perspective of an organisation can be trying to acquire these indicators from their customers. It can often be deemed invasive, and the activity holds the potential to do more harm than good. For example, asking your customers about their employment status can be an extremely sensitive conversation and one that could have a severe impact on your reputation if not handled with care.

 

Utilising third-party data, such as that provided by Experian, and a varied range of indicators help in correctly identifying those who are in most need of assistance. From here customers can be prioritised and supported in a way that is both beneficial to the customer and to the business.

 

It’s safe to say that customers will remember an organisation that supported them through the more challenging times.

 

For more information on identifying financial hardship in your customer base please complete your details below.

Read full article

Experian

By Experian 12/22/2020

Related Articles

Fuel quicker growth, with deeper customer insight
Fuel quicker growth, with deeper customer insight

When looking to support business growth, typically a great place to start for organisations is to understand who has purchased from them before. On the surface that might seem obvious…

Learn more
How to find new customers with a personalised engagement strategy
How to find new customers with a personalised engagement strategy

Earlier this year we began looking at the idea of Data Enrichment becoming a core pillar of an organisation’s broader data management strategy. In our first article, ‘Better audience profiling…

Learn more
Better data management is the beating heart of rapid business transformation
Better data management is the beating heart of rapid business transformation

In this, the first of three articles summarising our 2021 Global Data Management Research Report, we take a look at how the pandemic has caused untold disruption but has also…

Learn more
  • Submit
By providing your personal information you agree that we may collect and process it in accordance with our Privacy Statement.