Future-proofing Fraud Prevention in Digital Channels: APAC FI Study

GBG and The Asian Banker surveyed 324 respondents from financial institutions (FIs) in six key Asia-Pacific markets including Australia, China, Indonesia, Malaysia, Thailand, and Vietnam to better understand emerging and future fraud prevention trends in an increasingly digital world specifically for financial institutions. This study aims to gauge the digitalisation priorities of financial institutions based in the Asia Pacific and also assess their key fraud challenges and gaps in fraud control and mitigation.

Trends and priorities of APAC Financial Institutions in the digital age

Key features of digital offerings

FIs maintain a strong digital proposition for their customers predicated on a robust e-banking solution and mobile banking application. A significant majority of FIs have already introduced these facilities for their customers to enable a smooth, convenient, and safe customer journey. The next-gen digital offerings have not caught up with FIs in APAC yet, with relatively few FIs offering features such as fraud prevention alerts and instant payment stop (21%), voice-activated fund transfers (22%), and mobile phone voice assistant (25%) services.

Priorities in digitalisation

From the research, FIs are going beyond creating a digital presence, but are ramping up the availability of digital instant gratification series of financial products. Products to help customers transact instantly are the second highest in planned online products; instant bank account application and instant loan each are in the plans for 31% of the respondents. Instant credit cards are also coming up fast on planned rollouts (29%).

On-the-go banking (mobile banking app and e-wallet / mobile wallet) has already been implemented by over 52% of the respondents. Device integrated financial service like e-wallet is becoming a hygiene factor for financial institutions to compete for consumer share of voice, focused by 90% of respondents (57% currently implemented and 33% planned adoption). Respondents are considering new ways to augment mobile banking, one of the offerings which would be rolled out include P2P payment and fund transfer using mobile number (29%).

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