SAN JOSE, Calif.–FICO has released its second annual Consumer Digital Banking study, showing the degree to which consumers across the U.S. and Canada have embraced digital banking and biometric identity proofing during the COVID-19 pandemic.
The study found 41% of North American consumers are more likely to use digital means to open a financial account than a year ago, while almost a third (32%) are less likely to visit a branch to open a new account.
“Consumers across North America expect a seamless, uninterrupted experience when opening accounts digitally, either using a website or a mobile app,” said FICO in releasing the findings. “They also don’t want to be forced to use another channel to complete tasks, particularly those associated with identity proofing.
‘Higher Expectations’
“Specifically, Canadian consumers have higher expectations about the tasks they should be able to complete digitally than those in the U.S.,” the FICO analysis continued. “Canadians expect to be able to prove their identity (70%), prove where they live (60%) and set up biometric security (45%) within the digital channel they used to make the application. Whereas for Americans, these expectations drop to 62%, 52% and 42% respectively.”
FICO said with the shift towards digital-first banking, identity proofing and biometrics have become increasingly top of mind for consumers as identity theft is a real threat for people across North America. In the U.S., 11% of people believe their identity has been used by a fraudster to open an account, compared to 6% in Canada, which is equivalent to 23 million Americans and 660,000 Canadians, FICO reported. As a result, more than two-thirds of Americans (72%) and Canadians (68%) acknowledge that banks’ identity proofing is vital to protecting them from fraud.
Happy With Biometrics
Once accounts are open, the vast majority of consumers across North America are happy for their banks to use biometrics such as facial scan, fingerprint and/or voiceprint to protect them, according to FICO. The survey found that 76% of Americans and 74% of Canadians would be happy to do this, with over 40% (U.S. 42%, Canada 45%) even expecting biometric account logins to be set as part of the account opening process.
Skillsets Needed
The survey also found that when consumers are asked to move out of channel to prove their identities, for example by mailing documents, visiting branches or even sending scanned documents by email many of them will abandon the application, FICO reported.
On average, 25% of Americans will go to a competitor or abandon the application completely, which dips slightly for Canadians at 21%.
“While a significant portion of consumers can carry out the tasks needed to open a bank account using a mobile app, some will need help; particularly when they need to verify their identity,” FICO reported.
Other Findings
In general, a slightly higher percentage of Canadians say they can carry out these tasks compared to those in the U.S.:
- Download the provider’s mobile app: 53% (U.S.) vs 57% (Canada)
- Provide a selfie: 37% (U.S.) vs 38% (Canada)
- Scan documents such as a passport or driver’s license: 46% (U.S.) vs 47% (Canada)
- Scan a QR Code: 41% (U.S.) vs 42% (Canada)
- Scan your fingerprint: 41% (U.S. and Canada)
"Consumers embraced the digital first economy during the past 12 months, but how, when and what digital channels they prefer still varies greatly across demographics," said Liz Lasher, vice president, FICO. "For banks, it’s critical they understand their customers and deploy solutions and policies that can operate across channels and adapt to their customers evolving preferences."
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