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Building trust in a digital consumer landscape is the key to survival

A new global study by the Economist Intelligence Unit and TransUnion, “New Dimensions of Change: Building Trust in a Digital Consumer Landscape,” included responses from 1,610 executives worldwide*. It 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, and also preventing fraud.

The main findings were that:

  1. biometrics will be the dominant payment customer authentication method
  2. fraud detection and improved security will be the greatest benefit to using AI
  3. a national digital ID system will help prevent consumer fraud and holds the key to inclusion of low-income groups
  4. respondents believe consumers are comfortable sharing personal data.

These are unexpected findings with 3) and 4) having huge implications as to how we live and carryout our business. 

Conclusions

The report ends by saying that “The covid-19 pandemic has forced a worldwide shift to digital transactions, accelerating already-existing trends. Consumers crave more simple digital transactions, and businesses must realise that in order to build trust in a Covid-affected world, they must provide them with a more convenient and inclusive way to transact that still protects security and privacy.”

BUT companies looking to up-level their trust propositions in the digital transaction space should keep the following points in mind:

  • National digital IDs, biometrics and super-apps may be promising, but they carry risks
  • The challenges introduced by the pandemic in digital commerce, privacy and security are significant but not insurmountable
  • AI is paying dividends across the digital transformation agenda, especially in fraud prevention.

CTMfile take: This detailed global survey of 100s of executives reminded us all, including corporate treasury departments, that “Building trust in a digital consumer landscape may be challenging, but it will separate the winners from the rest.” Forget that in todays COVID-19 pandemic world and …. 

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* In Brazil, Canada, Chile, China, Colombia, the Dominican Republic, Hong Kong, India, the Philippines, South Africa, the U.K. and the U.S.

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This item appears in the following sections:
ID Systems & Services in Fraud Prevention
Minimizing Fraud Procedures
Minimizing Payment Fraud
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