UK banks need to focus on building confidence in the security of real-time payments, global analytics software leader FICO has urged following its latest international survey.
According to the FICO survey, three-quarters of consumers in the UK say they have sent (79 per cent) and received (73 per cent) real-time payments (RTP). However, nearly a quarter (23 per cent) say they do not know if RTP processes include enough security checks.
FICO also found that UK usage of RTP is lower than the global average. Seventy-nine per cent of UK consumers have sent RTP, while 73 per cent have received RTP, compared to 91 per cent and 89 per cent average for all 14 countries surveyed. Meanwhile, just 16 per cent of respondents have sent RTP from a business to a person, compared to the global average of 31 per cent.
The survey of 12,000 individuals across 14 countries revealed that 59 per cent of UK consumers will maintain their RTP usage while 28 per cent have plans to increase. However, with only 35 per cent considering RTP to be more secure than a credit card, FICO says there is a significant amount of work required to build consumer confidence.
“While there remains some slight uncertainty in the UK market around RTP security, it is clear to us that, based on global and local consumer trends, banks should expect usage to continue to increase and diversify,” explained James Roche, principal fraud consultant for FICO in EMEA. “At the same time, however, there needs to be more education around the benefits of RTP, how they counterbalance fraud checks and regulatory changes. This presents an opportunity for banks to communicate risks and warnings to their customers while providing a strong scam defence.”
Driving RTP education
FICO’s RTP survey also looked at global opinions comparing the payment method to other forms of transactions. Thirty-five per cent of UK consumers consider RTP to be more secure than a credit card, well below the global average of 51 per cent, while 49 per cent view the two payment methods as safe as each other. Just six per cent of UK consumers consider RTP less secure than a credit card.
“There is plenty of room for RTP use to grow in the UK market, and banks can expect to see an accelerated rate of adoption when they explain the benefits of the payment method to their customers,” added Roche. “As the UK RTP volume increases and begins to match global averages, there will, however, be a rise in scam threat.”
Banks that use scam protection technology will put themselves and their customers in the best position to protect their finances. Additionally, they need to be flexible and customer-focused in their use of communication channels. As RTP usage continues to grow, consumers expect their banks to equip them with the tools, education, and automated fail-safes to help prevent scam losses.
Finding the right method of communication
“One of the most fundamental ways banks can build consumer confidence and help to prevent losses is by knowing what method of communication their customers prefer,” Roche said. “More UK consumers prefer to receive sensitive communications through their bank’s app than any other method (37 added). As banking apps provide a much more secure channel for communications and transactions than text messages or emails, they can be a key channel for banks to help improve consumer confidence and fight scams.
“But no one channel is right for every customer, and banks should be able to select the most effective channel for each person to ensure UK consumers are getting the most out of RTP.”
