Consumer adoption of online transactions was trending well before the COVID-19 crisis — but has significantly accelerated in its wake. While many organisations view this digital uptick as a saving grace, it’s provided fraudsters a host of new opportunities. For consumer-facing businesses, there’s a clear and urgent need to deliver a truly friction-right user experience: One that simultaneously enables smooth digital transactions and applies strong authentication and fraud prevention measures.
In a recent study sponsored by TransUnion, the Economist Intelligence Unit surveyed 1,610 executives from 12 different economies across 5 continents to better understand how businesses are navigating an evolving digital landscape marked by increased fraud. The results were revealed in a global report — New Dimensions of Change: Building Trust in a Digital Consumer Landscape.
John Cannon, Managing Director of Fraud and ID at TransUnion in the UK explains, “Protecting consumers and minimising the fraud risks they face is crucial to earning their trust, and our research shows businesses view biometrics, AI and digital IDs as the key to trusted digital commerce going forward. Implementing the right tools and technology, alongside robust policies and processes, can help businesses strike the right balance between fraud prevention and a seamless customer experience. As this research shows, that’s no longer just desirable, it’s going to be critical for survival.”
For the UK audience, there’s a country-specific report ‘New Dimensions of Change: UK’ which details how businesses view the future of digital transactions — from strengthened data protection and privacy regulations to the growing presence of artificial intelligence and biometric innovations. It also explores emerging technologies and whether they’re poised to help businesses overcome hurdles (or perhaps introduce new ones) when it comes to building digital trust.
Primary themes covered in the New Dimensions of Change report
1. The impact of national digital IDs and biometrics on businesses and consumers
Many national digital ID programmes — which ensure each resident has a digital identity — rely on biometric data for authentication. The UK report asked UK business leaders:
- How they felt about the government’s plans to enable the use of digital identity
- Who could benefit most from these developments?
- What are their expectations for the future of biometrics?
2. Ensuring customer confidence to enable better fraud prevention
Companies are quickly realising their customers need to feel safe and secure in order to fully engage in the digital economy. Nearly three in four UK executives surveyed agreed there are benefits of a national digital ID to validate consumer transactions — suggesting this could be a way to widen the scope of fraud prevention and detection solutions. However, the research also indicates UK executives have concerns that consumers could resist digital adoption where there are suspicions their data could be used for alternative purposes.
3. Digital transformation and AI: Perception vs. reality
Regarding UK companies’ technology stacks, the survey reveals a gap between perceived digital maturity levels and actual digital transformation processes. Read the report to find out which areas of transformation in the UK are more advanced than their global peers.
4. Super-apps and digital payments — the future of digital commerce in the UK
Super-apps like WeChat could be a game-changer for consumer-facing brands. However, our research suggests UK ecommerce executives’ attitudes are more cautious than their global peers when considering the future usage and adoption of super-apps.
Regarding payments, 61% of UK consumers say they’re happier using contactless payments now than in 2019.* The report provides more details on the proportion of UK executives who are relatively convinced biometrics will be used to authenticate the vast majority of payments over the next 10 years.
Get key takeaways to help you plan for 2021
Today’s consumers expect safe, smooth transactions. As such, businesses should deliver digital experiences that are as seamless, convenient and inclusive as they are private and secure. While adopting new technologies and investing in digital transformation is now imperative for companies, it often comes with a level of risk. That’s why TransUnion is committed to offering effective solutions that can help businesses build trust and long-term loyalty with consumers.
Download the UK report New Dimensions of Change for a deeper understanding of how companies are currently managing growth and risk, and what technologies and strategies senior leaders deem to be “essential to business survival.”
* How COVID-19 is impacting consumer payment preferences, Paysafe, https://www.paysafe.com/en/blog/how-covid-19-is-impacting-consumer-payment-preferences/ 04/05/2020