New Experian research highlights that 77% of Malaysia consumers value ‘security’ as the most important element of their online experience
As organisations and consumers increasingly interact over digital channels, both parties must find ways to establish mutual trust. Based on insights from almost 6,000 consumers and 590 businesses across Asia-Pacific (APAC), Experian’s Global Identity and Fraud Report APAC edition highlights that trusted online relationships are based on businesses providing both a secure environment and seamless consumer experiences. 501 consumers and 51 businesses from Malaysia participated in the study.
The report found that the majority (77%) of Malaysia consumers valued ‘security’ as the most important element of an online experience, followed by ‘convenience’ (12%) and ‘personalisation’ (11%): the value that Malaysia consumers place on security is the second highest in APAC, after China consumers. It also found that 57% of Malaysia businesses had experienced an increase in online fraud-related losses over the past 12 months. This includes account takeover attacks and fraudulent account openings. As a result, 64% of Malaysia consumers surveyed felt that the trade-off for convenience in today’s digital society was decreased privacy, with 65% of businesses in Malaysia collecting more personalised data to develop a more tailored user experience, targeted products and offers.
“With interactions between businesses and consumers increasingly taking place over digital channels, building an environment characterised by security and mutual trust should be a leading priority,” said Dev Dhiman, Managing Director, Southeast Asia and Emerging Markets, Experian. “It will be imperative for business leaders to invest in identity verification and fraud management capabilities to realise the full potential of Malaysia’s digital economy.”
Data serves an enabler of digital services such as e-commerce; a sector that is forecasted to grow more than threefold from 2018 to 2025 in Malaysia. Beyond consumer convenience, positive developments in data will be vital to drive Malaysia’s digital potential and its Digital Transformation Acceleration initiative, anticipated to accelerate the country’s growth through digitalisation.
While existing security methods used by organisations are still more traditional in nature, report findings revealed that new technologies and advanced authentication solutions are viewed favourably by consumers. In fact, Malaysia consumers that have encountered physical or behavioural biometrics during online banking showcased confidence in these security measures: 85% had high confidence in physical biometrics, while 86% indicated high confidence in behavioural biometric.
“Consumers are increasingly looking to organisations to implement measures to enhance security and protection in digital interactions, and they are also looking to them for a more simplified approach. One approach that has proven both effective and well received among consumers is biometrics, which speeds up and simplifies the identity verification process for consumers”, said Mr Dhiman.
Transparency is another key determinant in building mutual trust. The report found that 81% of Malaysia consumers expected full transparency from businesses on how their information is used. Recognising this need, 53% of Malaysia businesses surveyed have invested more into programs designed to increase transparency in the last six months, with 61% having plans to invest more into such initiatives. Examples of these initiatives include educating consumers, communicating terms more concisely and helping consumers feel in control of their personal data.
Experian’s identity and fraud business comprises of nearly 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.