Aug 9, 2024
By: Prerna Tyagi
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India’s digital banking landscape is expanding rapidly, but complex identity checks are causing frustration among consumers. Discover how this issue is leading to a high rate of abandoned bank accounts and credit card applications.
Indians value ease of use above everything else when opening a new financial account. A significant 58% will abandon the process if they have to answer more than 10 questions. Simplification is key to retaining customers.
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If more than five questions are asked, 1 in 4 Indians will immediately drop out of the application process. The longer the process, the higher the chance of losing potential customers.
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No matter how many questions are asked, time is a critical factor. One in four Indians will give up on a personal bank account application if it takes more than 10 minutes to complete. Speed matters in digital banking.
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Identity theft is a growing concern, leading to increased identity checks by banks. However, this has caused frustration, with 40% of consumers reducing or stopping the use of their accounts due to cumbersome verification processes.
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Consumers show varying levels of patience depending on the financial product. While 56% abandon savings account applications due to complex checks, only 33% are frustrated enough to quit mortgage applications. Understanding these nuances is crucial.
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Despite the convenience, only 16% of Indians feel comfortable opening a mortgage account online. A significant 34% still prefer to apply for personal loans in person at a branch. Trust in digital channels needs to be strengthened.
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While ease of use (73%) and speed (68%) are seen as the main benefits of digital applications, 75% of Indians believe in-branch applications provide better security. Banks need to balance these factors to meet consumer expectations.
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Consumers are not willing to compromise on security. They demand smarter, more efficient onboarding processes that combine ease of use with robust anti-fraud measures. Banks must focus on intelligent identity verification.
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To retain and attract customers, banks must simplify account opening processes without compromising security. Leveraging technologies like open banking, improved ID verification, and transaction history analysis is essential.
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FICO’s survey highlights the growing expectations for ease of use in digital banking. However, banks must carefully balance these demands with strong security measures to prevent fraud and retain customer trust.
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