Vietnam
Vietnam Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months
  • 55%
    TELCO
  • 54.5%
    RETAIL
  • 32.8%
    TELCO
  • 35.2%
    RETAIL
  • 55% and 54.5% have experienced fraud at least once in retail and telco, respectively, compared to 32.8% and 35.2% on average
  • Impact: Overall anti-fraud capabilities need improvement
Thailand
Thailand Thailand
Most Thai consumers believe speed and resolution are severely lacking (response/ detection speed toward fraud incidents)
AP Average
  • 60.5% think it is most important, compared to 47.7% on average
  • Impact: Response time as one of key factors to fraud management to retain customers and gain their trust
India
India India as standalone
Consumers have the largest number of shopping app accounts in the region
India
  • Average of three accounts per person
  • Impact: Highest exposure to online fraud
China
China China
Consumers are the most tolerant toward submitting and sharing of personal data
AP Average
  • 46.6% compared to the AP average of 27.5% are accepting of sharing personal data of existing accounts with other business entities
  • Impact: higher exposure of data privacy and risk of fraud
New Zealand
New Zealand New Zealand
Consumers make most of their payments by internet banking
  • 74%
    BFSI
  • 70.5%
    TELCO
  • 54.5%
    RETAIL
  • 46.5%
    BFSI
  • 39.6%
    TELCO
  • 40.7%
    RETAIL
  • A higher percentage make payments via internet banking to banks and insurance companies, telcos, and retailers, respectively, compared to the regional average
  • Impact: Anti-fraud capabilities critical to the increased digital transaction frequency and customers’ trust in banks
Australia
Australia Australia
Consumers are most satisfied with the post-fraud service of banks and insurances companies
  • More than 70% satisfaction rate compared to 59.7% on average
  • Impact: Increased trust in BFSIs
Indonesia
Indonesia Indonesia
Consumers that encountered most fraud incidents in the past 12 months
49%
34.7%

AP Average

  • 49.8% have experienced fraud at least once compared to 34.7% on average
  • Impact: Overall anti-fraud capabilities need improvement
Singapore
Singapore Singapore
Consumers have the highest trust towards government
AP Average
  • 75.5% choose government agencies, compared with 51.7% on average
  • Impact: Trust of personal data protection is centered around government agencies
Hong Kong
Hong Kong Hong Kong
The least percentage of consumers with high satisfaction level toward banks and insurance companies’ fraud management
AP Average
  • Only 9.7% are most satisfied compared to 21.1% on average
  • Impact: effective response towards fraud incidents to be improved
alert
Japan Japan as standalone
Consumers most cautious on digital accounts and transactions
50.7% Actively maintain digital accounts’ validity
27% AP Average
45.5% Do not do online bank transfers
13.5% AP Average
  • More than 70% did not encounter fraud incidents in past 12 months, compared to 50% on average
  • Impact: Relatively low risk of fraud

Consumers in APAC continue to struggle with bill payments amid COVID-19

Consumers in APAC continue to struggle with bill payments amid COVID-19

The second wave of Experian’s 2020 Global Insights Report highlights the impact of the global pandemic on consumer spending habits and potential implications for financial institutions

 

SINGAPORE, 19 October 2020: Consumers in Asia Pacific (APAC) have reported difficulties in paying their bills and almost a quarter (23 per cent) are reducing their discretionary spending since the start of the pandemic, according to latest data from Experian. One in five are doing so due to job loss or an anticipated shift in their financial circumstances, and 29 per cent are spending less due to lifestyle changes imposed by social distancing measures such as dining out, entertainment or travel. The survey also found that there has been a 50 per cent increase in the number of APAC consumers who face challenges in paying personal loans and mortgages since COVID-19 started.

 

Experian – a leading global information services company – surveyed 3,000 consumers and 900 executives working in retail banks, e-commerce, consumer technology and telecommunications. Respondents spanned Australia, Brazil, France, Germany, India, Japan, Singapore, Spain, the United Kingdom and the United States. This report is the second of three in a longitudinal study exploring the major shifts in consumer behaviour and business strategy pre- and post-COVID-19, with economic perception at the epicentre.

 

Since the beginning of the pandemic, governments across the region have instituted loan moratoriums for businesses and consumers, observed in several markets including Singapore, Malaysia, Australia, Japan, China and India.

 

Ben Elliott, CEO Asia Pacific, at Experian, says: “This crisis has created huge challenges for everyone. Consumers are doing the right thing to protect their financial health by re-prioritising their spending. For those facing challenges in paying their bills, the loan deferrals available in some markets enables them to discuss a short-term payment suspension, or to defer or reduce payments, and this should not impact their credit history if they agree on the terms with their lender.”

 

The impact of the pandemic on the relationship between consumers and brands that can support them is already visible. Majority (89 per cent) of consumers who have opted for financial assistance or payment deferment support stated that they would recommend these services to others. Moreover, 41 per cent of APAC customers would give an organisation more business if they felt they were treated fairly during the pandemic.

 

Mr Elliott adds: “As customer profiles change rapidly, lenders face the prospect of steep provisioning. We have been helping banks and lenders to understand that during a downturn, it is important for them to utilise a decisioning system to identify financially stressed customers with early-warning indicators, respond quickly to change, predict future customer behaviour, and deliver the right treatment at the right time. We’ve found that this helps with building greater trust and ensuring loyalty in the long run, and also improves their customer retention.”

 

The report found that businesses in APAC are increasingly prioritising investments in analytics to better determine customer affordability and hardship. Sixty-two per cent of businesses are increasing their budget for analytics and customer creditworthiness in the next six months and nearly half (48 per cent) of APAC businesses are looking to recalibrate and improve their existing analytics models.

 

MoneyPlace, one of Australia’s fastest growing personal loan providers, is an example of a fintech company successfully leveraging Experian’s data, cloud-native decisioning platform, and analytics to manage existing and new customers. The technology enables them to identify suitable customers instantaneously, with risk-based pricing to offer low-interest personal loans with fixed rates and no ongoing fees, enabling customers to tide through tighter economic situations. Speed and agility are key to MoneyPlace’s success, as potential customers can obtain a personalised interest rate online in two minutes, with the whole loan application process completed in 10 minutes.

 

Stuart Stoyan, founder and CEO at MoneyPlace, says: “Experian provides us with an enterprise grade, cloud-based platform to combine customer data at the point of application with credit, fraud, and internal data, enabling us to obtain a comprehensive view to make informed decisions quickly. This is especially important during the current environment, where a broad range of data sources are needed to appropriately assess a loan application, whilst fulfilling customer expectations of a seamless online experience.”

 

Read more about findings from the Global Insights Report – Wave 2 here

 

Read full article

Experian

By Experian 10/19/2020

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