FSI firms in HK rank low in digital trust

FSI companies in Hong Kong are facing growing number of fraud incidents (Credit: yuoak/iStockPhoto)

FSI companies in Hong Kong, together with their counterparts in Singapore, Thailand and Indonesia, ranked low in the digital trust index from the APAC-focused Fraud Management Insights 2017 Report.

Developed to provide a meaningful way to measure trust between customers and organizations, the index reviews a selection of criteria across industries and countries to determine the level of trust consumers have for digital services and offers a snapshot of consumer behavior and expectations.

FSI companies in these four markets received scores between 3.8 and 2.9 out of 10, while their counterparts in New Zealand received 8.02, Japan got 6.86 and Australia received 5.84. A higher score indicates that consumers are satisfied with their digital transaction experience, while a lower score indicates a failure of trust.

The report, which covered 10 markets in Asia Pacific, surveyed 3,200 consumers and over 80 organizations from the FSI, telecommunications and retail sectors, each of them has revenues of at least US$10 million.

About 38 FSI companies from Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand, Singapore, Thailand and Vietnam participated in the study, which was jointly conducted by IDC and global information services company Experian.

The FSI industry has a digital trust average of 4.95 out of 10, which is higher than the retail and telecommunication sectors, both of which received an average of 2.40 and 2.14 respectively.

Meanwhile, the report said that 44% of FSI companies in the region have noted a growing number of fraud incidents. The reports warned companies to look out for these top five fraud types: online fraud, card fraud (including card not present fraud), malware in online channels, identity theft and malware in mobile channels.

“Across the board, companies are seeing the scale and variety of fraud growing into 2018. And with customers expecting seamless and fast digital transactions, they require proactive measures to balance security and customer experience,” said Mohan Jayaraman, regional managing director, decision analytics & business information, Experian Asia Pacific.

He said: “Financial services companies are focusing on the real-time detection of fraud because they are at the frontline of attacks, and they realized that it is no longer enough to mitigate incidents only after it happens.”