Financial fraud on the rise, share of victims doubled to 37 percent

FIS’ fifth annual PACE report highlights that Indians have embraced digital transactions, but they are yet to learn the do’s and don’ts of sharing personal information, as social engineering and phishing emails are rampant.

There is a dramatic correlation in India between booming adoption of mobile apps, digital payments and increasing rate of financial fraud: 96% of Indian consumers who were victimized by financial fraud during the last year had switched to a mobile app and digital payments, from cash as mode of payment, significantly impacting the country’s efforts towards financial integration.

Mobile apps now serve as the digital ‘face’ for many banks, and a record 41% of bank interactions are now performed via mobile device. Mobile has become the default banking channel across all age groups. Looking ahead, Indian consumers want banks to invest in password-free and biometric-based banking, voice banking and wallets.

Customers of top 50 global banks and private sector banks are less satisfied than they were in 2018. However, public sector banks, traditionally seen as slow to react – saw their proportion of ‘extremely satisfied’ customers climb considerably, rocketing from the worst performing category to the best. It’s clear that innovation is no longer restricted to a certain set of banks. About 28% of young Gen Yers (18-26) and 35% of older consumers (53+) are not satisfied with their banks.

Customers’ trust in their banks is not just a feeling or an emotion but an objective decision based on a number of expectations. However, banks can earn customers’ trust if they focus on safe and secure transactions, fraud prevention and privacy of personal information, said Ramaswamy Venkatachalam, Managing Director, FIS, India.