BROOKFIELD, Wis.–As consumers have embraced online and mobile methods to pay bills and keep track of finances, new research is revealing opportunities for organizations to increase
consumer knowledge of services and security to improve the financial experience.
Among the key findings: a belief by consumers that the regular USPS mail is the most secure way to conduct financial business, bringing new importance to “a multi-channel strategy that gives consumers choices for how and when they receive and pay their bills to build trust.”
The findings related to the importance of “trust” echo what Experian also recently found, as CUToday.info reported here.
While Fiserv’s “Expectations & Experiences: Consumer Payments” consumer survey found the majority of consumers (59%) paid bills online in the past 30 days, which was similar to 2017 findings, “steady use of payment services may be driven by convenience rather than comfort, with nearly half who are involved in managing bills expressing concerns about security.”
At the same time, interest in new features and functionality is growing, but nearly half of consumers are confused by the different financial products and services available today, Fiserv reported.
‘Raising the Bar’
“Consumers are continually raising the bar for what they need and expect when it comes to moving and managing their money, and these results reinforce that payments are more than a transaction and central to the brand experience,” said Devin McGranahan, senior group president, Fiserv, in a statement released with the research findings. "Even as consumer preferences evolve and new innovations gain traction, consistency and execution remain the hallmarks of billing and payments strategy. Billers and financial institutions can meet their customers where they are with intelligent payments experiences that drive relationships and satisfaction.”
Other Findings
Among the other findings:
- 53% agree they like to be connected to the Internet at all times, yet an equal number (53%) say they strongly distrust Internet security or privacy. “Generally, concern over security is a commonly cited factor hindering digital financial services adoption, and an opportunity for financial services to both remind and educate consumers about security steps and best practices,” Fiserv said in the report.
- Half of consumers involved in bill management report overall concerns related to paying bills, a number that rises to 64% for early Millennials (ages 18-26). Among those consumers involved in bill management, 30% reported increased concern with paying bills online due to security.
- Among those who have not used mobile banking in the past 30 days, security remains the top concern (57%), and is also a factor in why some consumers have not used person-to-person (P2P) payments through a financial institution, Fiserv said. In contrast, concern about online security and protecting personal information (24%) ranked third behind preference for other payments methods (44%) and unwillingness to pay a fee (38%) as reasons for not using P2P payments.
The United States Postal Service is viewed as a more secure way to receive bills than other methods among just over half of consumers involved in bill management (52%), while websites (33%) are the next most reported method as more secure compared to other methods for paying bills. “This suggests the continued importance of a multi-channel strategy that gives consumers choices for how and when they receive and pay their bills to build trust,” Fiserv said.
Payments Usage Steady, Engagement Increases
In addition, consumers report using more mature services such as online bill pay (59%) and electronic bills (53%), followed by relatively newer services like mobile bill pay (27%), P2P through a financial institution (17%) and digital wallets (15%).
Active online and mobile payments service usage, measured by use of the service in the past 30 days, remained steady year-over-year. However, current users report increased use over the past year across digital wallets (53%), mobile bill pay (48%), financial institution-based P2P service (44%), and electronic bills (32%), the Fiserv research found.
Address Confusion to Increase Adoption
Meanwhile, in what the Fiserv research suggested is a signal of an opportunity to increase broader awareness and adoption, some consumers expressed confusion about available financial services usage. Nearly half (46%) said they were confused about the various products and services available today. One in three (33%) consumers said there are mobile banking features they would like to use, but don’t know how.