New Experian research highlights that 67% of Singapore consumers value ‘security’ as the most important element of their online experience
SINGAPORE, 23 April 2019 – As organisations and consumers increasingly interact over digital channels, both parties must find ways to establish mutual trust. Based on insights from almost 6,000 consumers and 590 businesses across Asia-Pacific (APAC), Experian’s Global Identity and Fraud Report APAC edition highlights that trusted online relationships are based on businesses providing both a secure environment and seamless consumer experiences. 510 consumers and 59 businesses from Singapore participated in the study.
The report found that the majority (67%) of Singapore consumers valued ‘security’ as the most important element of an online experience, followed by ‘convenience’ (24%) and ‘personalisation’ (9%). It also found that 63% of Singapore businesses had experienced an increase in online fraud-related losses over the past 12 months. This includes account takeover attacks and fraudulent account openings. As a result, 63% of Singapore consumers surveyed felt that the trade-off for convenience in today’s digital society was privacy, with 58% of businesses in Singapore collecting more personalised data to develop a more tailored user experience, targeted products and offers.
“With interactions between businesses and consumers increasingly taking place over digital channels, building an environment characterised by security and mutual trust should be a leading priority,” said Dev Dhiman, Managing Director, Southeast Asia and Emerging Markets, Experian. “It will be imperative for business leaders to invest in identity verification and fraud management capabilities to realise the full potential of Singapore’s digital economy.”
Data serves as an enabler of digital services such as e-commerce, a sector forecasted for exponential growth in Singapore and Southeast Asia1. Beyond consumer convenience, positive developments in data will also be vital to drive Singapore’s digital potential beginning with its Smart Nation initiative2, which is anticipated to accelerate digitalisation and data use across the country.
While existing security methods used by organisations are still more traditional in nature, report findings revealed that new technologies and advanced authentication solutions are viewed favourably by consumers. In fact, Singapore consumers who have encountered physical or behavioural biometrics during online banking showcased confidence in these security measures: 69% had high confidence in physical biometrics, while 57% indicated high confidence in behavioural biometrics3 .
“Consumers are increasingly looking to organisations to implement measures to enhance security and protection in digital interactions, and they are also looking to them for a more simplified approach. One approach that has proven both effective and well received among consumers is biometrics, which speeds up and simplifies the identity verification process for consumers”, said Mr Dhiman.
Trust among Singapore consumers in government agencies in handling their personal data was also among the highest in APAC: 61% of Singapore consumers surveyed indicated high levels of trust. This may have been due to the active role the government plays in shaping regulation and initiatives that promote data privacy and security, which is likely to have improved their perception among consumers.
Transparency is another key determinant in building mutual trust. The report found that 74% of Singapore consumers expected full transparency from businesses on how their information is used. Recognising this need, 56% of Singapore businesses surveyed have invested more into programs designed to increase transparency in the last six months, with 51% having plans to invest more into such initiatives. Examples of these initiatives include educating consumers, communicating terms more concisely and helping consumers feel in control of their personal data.
The full Global Identity and Fraud Report – Asia-Pacific edition can be downloaded here.
Experian’s identity and fraud business comprises of nearly 300 fraud experts around the world working to protect people’s identities and fight fraud for businesses across multiple sectors, including financial services, telecommunications, retail/e commerce, insurance, government and healthcare.
[1] Google-Temasek: e-Conomy SEA 2018
[3] According to the 2019 Experian Identity and Fraud Report, examples of behavioural biometrics include speech patterns, keystroke dynamics, signature analysis, etc.