iovation, a TransUnion (NYSE:TRU) company, today announced the results of its “2019 Financial Services Fraud and Consumer Trust Report” at Money 20/20 USA. The report includes the analysis of tens of billions of global online financial services transactions that iovation and TransUnion have screened for fraud, as well as a survey of 1,604 consumers.

“Our research determined three key market drivers that will shape the financial services industry in 2020,” said Melissa Gaddis, iovation’s senior director of customer success. “Consumer trust is a competitive difference, fraud is going mobile mirroring consumer behavior and customer satisfaction is driven by the mobile platform.”

Some of the financial services findings in the report include:

Consumers go mobile

●      Mobile device usage as a percentage of all online transactions has increased from 28% in 2014 to 61% so far in 2019.

●      Mobile app usage grew at twice the rate of mobile web usage, from 15% in 2014 to 39% in 2019. Mobile web transactions went from 14% in 2014 to 22% in 2019.

●      62% of mobile consumers used iPhones, 34% Android devices, and just 4% iPads between September 2018 and September 2019.

Fraudsters go mobile too

●      Since 2017, the percentage of suspected fraudulent transactions from mobile devices increased 138%. This far outpaced the growth in overall mobile transactions which only grew in the same time by 30%.

●      So far in 2019, 50% of suspected fraudulent transactions were from mobile devices. In 2018 that statistic was 41% and in 2017 it was 21%.

Trust and security influence which financial institutions consumers use

●      3 out of 4 consumers (72%) say account security and privacy are primary factors in deciding which institution they bank with/have a credit card with.

●      2 out of 3 consumers (64%) would switch financial services companies for one that has more advanced security protocols in place.

●      2 out of 5 consumers (39%) have already closed an account with an online financial services company due to security and fraud concerns.

“Sorting out fraudsters—who try to camouflage themselves with behavior that looks very similar to good customers—is always going to be a challenge in the mobile space,” said Mary Ann Miller, head of fraud strategy at customer Varo Money. “In building our security systems, we put a lot of thought into the right balance of customer experience and safety. Otherwise we’re putting up walls at the expense of good customers.”

“It’s clear consumers have taken notice of the thousands of global breaches exposing hundreds of millions of people’s personal information each year,” said Don Bergal, senior vice president of marketing at partner Temenos. “iovation’s findings bring to light just how crucial security and privacy is for both protecting consumers and benefiting banks’ bottom lines.”  

The complete iovation “2019 Financial Services Fraud and Consumer Trust Report” is available Nov. 5. Register to receive it here. To discuss the findings at Money 20/20 USA, find iovation at booth 4126.

Methodology

The financial services transactions iovation analyzed include those from day-to-day banking, credit cards, investments and loans for industries like automotive and e-commerce. The transactions iovation have analyzed so far in 2019 span from Jan. 1 to September 24, 2019. Between September 17 and 22, 2019, iovation collaborated with Insights West to survey 802 consumers from the United Kingdom and 802 consumers from the United States.