New Experian research examines key factors important for gaining consumer trust and confidence
Den Haag, The Netherlands, 5 January 2019 — Digital commerce has changed the way consumers interact with businesses, moving from face-to-face transactions to anonymous relationships built on trust. Difficult to achieve and earned over time, trusted online relationships are based on businesses providing a secure environment and a great customer experience. Released today, Experian’s Global Identity and Fraud Report found that 65 percent of Dutch consumers see security as the most important element of their online experience, followed by convenience (30 percent). To develop the study, Experian® interviewed more than 10,000 consumers and more than 1,000 businesses across 21 countries around the world.
While businesses often have invested in one at the expense of the other, consumers across the globe expect both. So much so that 74 percent of them are willing to share more personal data with the organisations they interact with online, particularly when they see a benefit such as greater online security and convenience.
“Security and convenience are the bedrocks of a dynamic digital marketplace that effectively manages risk and delivers a seamless experience,” said Steve Pulley, Experian’s executive vice president and general manager of Global Identity & Fraud Solutions. “The availability of information consumers share with businesses makes this possible, but it’s the same information that puts them at a greater risk for fraud, making trust more important than ever.”
Findings from the study also reveal that consumers and business leaders agree that security methods enabled by new technologies and advanced authentication solutions instill online trust. In fact, globally consumer confidence grew from 43 percent to 74 percent when physical biometrics was used to protect their accounts. Businesses also are beginning to embrace the changing technology. Half of organizations globally (and 52 percent of Dutch organisations) reported an increase in their fraud management budget over the past 12 months.
“Trust begins with a business’s ability to deliver more from the information they already have and to use advanced technologies to identify their customers and provide a relevant experience without increasing their risk exposure,” added Pulley. “In other words, consumers really can expect both — security and convenience.”
The report went on to discuss how many businesses are proactively sharing with customers how they use their personal information. The report found that nearly 80 percent of consumers say the more transparent a business is about the use of their information, the greater trust they have in that business. Forty percent of Dutch businesses plan to invest more in transparency-inspired programs such as educating consumers, communicating terms more concisely and helping consumers feel in control of their personal data.
“Fraud risk remains a constant and growing threat in today’s digital landscape. In the past 12 months, in EMEA (including the Netherlands), businesses experienced an increase of 53% online fraud losses,” says Béatrice Larrègle, Experian’s Market President Benelux and France.
“Experian helps businesses better identify their customers, enhances fraud detection and prevention, while delivering great customer experiences and keep both businesses and customers safe.”
Download the full Global Identity and Fraud Report.
Experian’s identity and fraud business comprises more than 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.