New India Study Finds Smooth Digital Transactions
“Essential to Business Survival” During and After Pandemic
- 93% respondents in India believe a national digital ID gives low-income groups access to consumer services they would have previously been excluded from
- Economist Intelligence Unit report for TransUnion highlights which emerging technologies could present challenges for and increase fraud prevention, economic inclusion and consumer privacy
A new global and India study by the Economist Intelligence Unit for TransUnion (NYSE: TRU) has overwhelmingly found the key to whether or not companies go out of business hinges on providing consumers friction-right digital transactions. About 94% of India and 85% of global executives surveyed as part of the study said they believe smooth transactions are “essential to business survival” rather than merely a competitive edge.
“COVID-19 has dramatically accelerated digital transformation with 61% of our global survey respondents saying their organization has changed their digital transaction process due to the pandemic,” said Shaleen Srivastava, executive vice president and head of Fraud, Solutions and Alternate Data at TransUnion in India. “But all of this digital progress will be wiped out if we can’t remove these barriers to building bilateral digital trust. For instance, two-thirds of global executives in the study who said their company changed their digital transaction process as a result of the pandemic experienced glitches."
The report, “New Dimensions of Change: Building Trust in a Digital Consumer Landscape,” included responses from 162 executives from India, and 1,448 executives in Brazil, Canada, Chile, China, Colombia, the Dominican Republic, Hong Kong, the Philippines, South Africa, the U.K. and the U.S. The research uncovered how technologies like artificial intelligence (AI), national digital IDs and super-apps can help overcome hurdles and possibly create new challenges to building digital trust.
Artificial Intelligence (AI), Biometrics and National Digital IDs Will Play an Increasingly Important Role in Fraud Prevention
Overwhelmingly respondents answered that: 1) biometrics will be the dominant payment customer authentication method; 2) improved fraud detection and security is the greatest benefit to using AI; and 3) a national digital ID system will help prevent consumer fraud.
Approximately 93% of India and 85% of global executives say biometrics are likely to be used to authenticate the vast majority of payments in the next 10 years. About 37% of India and 43% of global respondents noted that improved fraud detection and security is the greatest benefit to using AI. This was the top selection by far with smoother customer experience being the second most used answer globally at 29% worldwide and 27% in India. Furthermore, the vast majority of executives, 95% in India and 79% globally, think national digital IDs will help fraud prevention in consumer transactions.
“Ensuring consumer trust starts with preventing fraud. Our research overwhelmingly showed that biometrics, AI and national digital IDs aren’t just a fad for consumer fraud prevention. They are key for trusted commerce for the foreseeable future,” said Shaleen.
National Digital IDs Hold the Key to Economic Inclusion
Seven in 10 executives globally and 93% in India believe a national digital ID gives low-income groups access to consumer services they would have previously been excluded from. By industry worldwide, respondents from consumer lending and telecommunications think such IDs give lower-income groups access to services they might otherwise lack. Both industries have led the way over the last decade in reaching the community of financially-underserved customers, manifested in innovations like microfinance and mobile money.
Executives Believe Consumers are Comfortable Sharing Personal Data
About 91% of India and 73% of global executives believe consumers are comfortable sharing personal data with private companies. Nearly 71% of worldwide and 93% of India executives believe consumers are comfortable sharing personal data with governments. Brazilian, Chinese and Dominican Republican executives have vastly differing views about whether or not consumers are willing to share data with private companies versus government bodies (more than 10% difference in each country between sharing with governments and companies). Chinese respondents believe consumers are much more comfortable sharing personal data with government bodies than companies. Brazilian and Dominican Republican executives have the opposite belief.
“Technological innovations like AI, biometrics and national digital IDs paired with proven fraud prevention methods like device intelligence can provide a more convenient and inclusive way for consumers to transact that still protects security and privacy,” Shaleen concluded.