56%
52%
It is really hard to understand how companies use my data
51%
If I want access to a product or service, I am willing to accept that my data is used
48%
I don’t think companies have enough security measures in place to protect my data
I feel my personal data is already being shared between companies
57%
51%
50%
45%
54%
52%
45%
49%
55%
53%
42%
51%
57%
55%
50%
51%
Welcome to experian’s 2022 business and consumer insight report
57%
51%
46%
47%
Consumer snapshot
Business snapshot
Consumer financial
health, attitudes to
data, and the impact
on Open Banking
1
The challenge of
rising fraud vs
a seamless digital
experience
2
Cloud, Advanced Analytics and the rise of Machine Learning
3
The future: business
investment plans and budget prioritisation
4
I feel my personal data is already being shared between companies
I don’t think companies have enough security measures in place to protect my data
It is really hard to understand how companies use my data
If I want access to a product or service, I am willing to accept that my data is used
I feel my personal data is already being shared between companies
I don’t think companies have enough security measures in place to protect my data
It is really hard to understand how companies use my data
If I want access to a product or service, I am willing to accept that my data is used
I feel my personal data is already being shared between companies
I don’t think companies have enough security measures in place to protect my data
It is really hard to understand how companies use my data
If I want access to a product or service, I am willing to accept that my data is used
I feel my personal data is already being shared between companies
I don’t think companies have enough security measures in place to protect my data
It is really hard to understand how companies use my data
If I want access to a product or service, I am willing to accept that my data is used
I feel my personal data is already being shared between companies
I don’t think companies have enough security measures in place to protect my data
It is really hard to understand how companies use my data
If I want access to a product or service, I am willing to accept that my data is used
Would be willing to change their mind for the right reason:
To ensure they don’t have to send physical paperwork
To get a preferential offer (e.g., a better loan rate)
To guarantee a faster application
BASE AND SOURCE
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Abandoned an application for finance in the last 12 months
Unlikely to use a company with a
slow application
process again
Are concerned about fraud when interacting online
Think that digital identity checks are convenient
Happy to provide information if it means they are less likely to be a victim of fraud
Live paycheck to
paycheck
Borrowing more than they used to
Feel anxious about their financial situation
Consumer snapshot
Businesses are ‘expanding or upgrading’ adoption of cloud based software
Planning to
adopt in the next 12 months
Adopted but not expanding or upgrading
Increased costs
of using multiple types of fraud prevention software is the main fraud challenge
Business snapshot
3,629 consumers in EMEA & APAC
750 EMEA & APAC decision makers from Financial Services and Telecommunications firms
A commissioned study conducted by Forrester Consulting on behalf of Experian, August 2022
49%
of consumers are very likely or likely to share their financial information via banking app
21%
are unlikely to share their transaction data
BUT
The real opportunity for Open Banking lies in the “value exchange” and the extent to which consumers see the benefits from shared data in the form of improved services or experiences
Spain
South Africa
Italy
Netherlands
Germany
Denmark
EMEA
56%
I feel my personal data is already being shared between companies
I don’t think companies have enough security measures in place to protect my data
It is really hard to understand how companies use my data
53%
47%
If I want access to a product or service, I am willing to accept that my data is used
48%
Consumer financial health, attitudes to data, and the impact on Open Banking
1.
Planning to invest
Planning to invest
Already invested
Planning to invest
22%
Planning to invest in next 12 months
39%
Invested already
Fraud prevention and customer experience are the top business priorities over the next 12 months
Base:
Risk assessment
Affordability assessment
Income verification
Employment verification
Identity verification
How much of a priority are the following Open Banking use cases for your organisation?
Spotting vulnerability in customer management
Personal finance management
Payment services
The priority use cases for Open Banking is ‘risk assessment’ and ‘payment services’ with 66% of businesses highlighting these use cases as a critical or high priority. Looking at the risk assessment use case, the depth of the data accessible from Open Banking means that businesses can use the transactional data to develop a standalone risk assessment score, which is comprehensive enough to be used instead of a bureau-based score. However, many businesses are in fact blending multiple data sources to provide even greater accuracy.
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Open Banking is creating huge opportunities, with 52% of the businesses surveyed already seeing significant value from their Open Banking projects.
52%
The challenge of
rising fraud
vs a seamless
digital experience
2.
63% of consumers are concerned about fraud when interacting online, and 39% have been the victim of a data breach. In an increasingly digital world, fraudulent attacks are becoming more sophisticated. Device emulation, credential stuffing, and remote access trojans are just some of the modern attack methods used to target individuals and businesses. As a result, consumers are wary, and businesses are fighting to stay ahead of these emerging threats.
36%
41%
32%
Increased delays and costs associated with referrals
Difficulties managing multiple types of fraud prevention software
66%
66%
65%
63%
62%
62%
61%
61%
Most consumers are concerned about fraud in their online interactions and more than 1 in 3 have been the victim of a data breach
Firms increasing their budgets for ‘Digitisation of internal user tools and processes’
Financial Services
Firms planning to adopt Machine Learning in the next 12 months
Telecoms
Firms planning to adopt Machine Learning in the next 12 months
Source:
Top challenges preventing firms from successfully managing costs and risks of increased fraud
WE ASKED:
Thinking about getting a loan or credit card, what are the most important factors in your decision?
49%
52%
50%
46%
41%
52%
Cost of borrowing
(loan rate or fees)
Cloud, Advanced Analytics
and the rise of
Machine Learning
3.
of businesses believe that Artificial Intelligence and Machine Learning are already radically changing the way they do business
62%
45%
Data management
41%
44%
Top 3 areas which organisations are leveraging
Artificial Intelligence and Machine Learning
of businesses find the explainability of complex Machine Learning models to be their biggest challenge when adopting Artificial Intelligence
33%
WE ASKED:
What factors are making it difficult for your organisation to make credit risk and affordability decisions?
49%
Ensuring I can afford the repayment plan
50%
Simple application process
46%
Feeling secure
about the provider
41%
Speed of access to the funds
There is no doubt that the current landscape is complex and uncertain. But business continues, and the challenges and opportunities remain. In this report, we uncover those big business challenges and reveal how firms are planning to combat them. We then look at consumers and what they expect from businesses, how these expectations are changing, and what impact this has on firms looking to improve the customer experience.
This year, we explore business and consumer views on a range of topics, including data privacy, data sharing, customer experience, fraud, technology investment, advanced analytics, and much more. We’ve surveyed 750 Financial Service and Telecoms business decision-makers and more than 3,600 consumers across eight markets – Denmark, Germany, Italy, Netherlands, South Africa, Spain, Turkey, Australia and New Zealand. The findings reveal a common set of challenges and perspectives across geographies.
The future: business
investment plans and
budget prioritisation
4.
Need for more advanced ...
More intense regulatory...
South Africa
37%
40%
38%
29%
17%
47%
41%
39%
36%
More intense regulatory pressure
73%
Investing to improve protection against fraud
73%
Improving the experience of customers
Most firms have invested or are planning to invest in Open Banking
DISCOVER THE TOP 5 PRIORITIES AND THE COMPARISON WITH 2021
Improving the experience of customers
Investing in software-as-a-service (SaaS)/cloud technology and systems
Investing in digitalisation of core business processes
Growing through new customer acquisition
Investing to improve protection against fraud
Top 5 business priorities over the next 12 months shows fraud has become more important
Fraud has become a greater priority for businesses. Improving the experience of customers sits alongside fraud protection as the highest priority, as businesses continue to invest in ways to differentiate the customer experience from competitors.
67%
70%
67%
69%
73%
70%
Businesses plan to expand or upgrade cloud-based software adoption
In terms of technology adoption, the findings suggest that many businesses have already invested in cloud-based software, but 44% are actively expanding or upgrading what they have. This highlights a cloud focused strategy for many firms with clear expansion plans for cloud-based software components. Machine Learning is the biggest technology area for expected investment, with 31% of businesses planning to invest in the next 12 months.
2021
2022
CLOUD-BASED
SOFTWARE
MACHINE
LEARNING (ML)
ARTIFICIAL
INTELLIGENCE (AI)
OPEN BANKING
Expanding or
upgrading adoption
18%
44%
28%
27%
24%
25%
26%
25%
20%
31%
37%
38%
Adopted, not expanding/upgrading
Planning to adopt in the next 12 months
Tech priorities: what are your organisation’s plans for the following?
Year-over-year budget increase for the next 12 months
Advanced analytics
South Africa
Italy
Denmark
52%
54%
47%
48%
62%
55%
49%
45%
53%
EMEA
Germany
Australia /
New Zealand
Netherlands
Turkey
Spain
Fraud prevention
Digitalisation of customer experience
Digitalisation of internal user tools and processes
Customer insight
1
2
3
4
Q
1
Consumer financial health...
2
The challenge of rising...
3
Cloud, Advanced Analytics...
4
The future: business...
Q
Take the quiz
Download the report
Financial
Services
43%
Telecoms
32%
49%
48%
46%
58%
36%
63%
58%
63%
47%
33%
43%
44%
26%
18%
Investing to
improve protection against fraud is the top business priority
in the next 12 months
(4th in 2021)
73%
41%
52%
31%
30%
Australia /
New Zealand
I feel my personal data is already being shared between companies
I don’t think companies have enough security measures in place to protect my data
It is really hard to understand how companies use my data
If I want access to a product or service, I am willing to accept that my data is used
57%
48%
49%
47%
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Financial
Services
19%
Telecoms
27%
Fraud risk decisioning
Credit risk models
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Italy
Denmark
EMEA
Germany
Australia /
New Zealand
Netherlands
Turkey
Spain
43%
44%
42%
42%
38%
50%
42%
51%
47%
EMEA
Denmark
Germany
Italy
Netherlands
South Africa
Spain
Turkey
Australia /
New Zealand
Need to update risk and fraud models in faster cycles
41%
38%
48%
44%
26%
39%
47%
46%
41%
EMEA
Denmark
Germany
Italy
Netherlands
South Africa
Spain
Turkey
Australia /
New Zealand
Need for more advanced analytical models to better assess customers
South Africa
Italy
Denmark
EMEA
Germany
Australia /
New Zealand
Netherlands
Turkey
Spain
50%
50%
49%
51%
60%
44%
51%
42%
48%
South Africa
Italy
Denmark
EMEA
Germany
Australia /
New Zealand
Netherlands
Turkey
Spain
49%
43%
39%
54%
52%
50%
55%
53%
43%
South Africa
Italy
Denmark
EMEA
Germany
Australia /
New Zealand
Netherlands
Turkey
Spain
48%
53%
41%
44%
45%
49%
52%
47%
51%
South Africa
Italy
Denmark
EMEA
Germany
Australia /
New Zealand
Netherlands
Turkey
Spain
47%
45%
48%
50%
51%
44%
47%
47%
49%
Digitalisation of internal user
tools and processes
Digitalisation of customer experience
Fraud prevention
Advanced analytics
Customer insight
Download the full report for to get more insights and a complete view
Inability to align fraud strategies with revenue growth strategies
More intense regulatory...
Need for more advanced ...
Need to update risk and...
Need to update risk and...
66%
73%
71%
1
2
3
4
Q
Download the report
Q
Take the quiz
4
The future: business...
3
Cloud, Advanced Analytics...
2
The challenge of rising...
1
Consumer financial health...
1
2
3
4
Q
Download the report
Q
Take the quiz
4
The future: business...
3
Cloud, Advanced Analytics...
2
The challenge of rising...
1
Consumer financial health...
1
2
3
4
Q
Download the report
Q
Take the quiz
4
The future: business...
3
Cloud, Advanced Analytics...
2
The challenge of rising...
1
Consumer financial health...
1
2
3
4
Q
1
2
3
4
Q
EMEA
Denmark
Germany
Italy
Netherlands
42%
South Africa
Spain
Turkey
Australia /
New Zealand
South Africa
Spain
Turkey
Australia /
New Zealand
EMEA
Denmark
Germany
Italy
Netherlands
1
2
3
4
Q
CLOUD-BASED SOFTWARE
Expanding or
upgrading adoption
Adopted, not expanding/upgrading
Planning to adopt in the next 12 months
MACHINE LEARNING (ML)
Expanding or
upgrading adoption
Adopted, not expanding/upgrading
Planning to adopt in the next 12 months
ARTIFICIAL INTELLIGENCE (AI)
Expanding or
upgrading adoption
Adopted, not expanding/upgrading
Planning to adopt in the next 12 months
OPEN BANKING
EMEA
Denmark
Germany
Italy
Netherlands
South Africa
Spain
Turkey
Australia /
New Zealand
EMEA
Denmark
Germany
Italy
Netherlands
South Africa
Spain
Turkey
Australia /
New Zealand
EMEA
Denmark
Germany
Italy
Netherlands
South Africa
Spain
Turkey
Australia /
New Zealand
EMEA
Denmark
Germany
Italy
Netherlands
South Africa
Spain
Turkey
Australia /
New Zealand
Digitization of internal user tools and processes
Digitization of customer experience
Fraud prevention
Advanced analytics
Customer insight