Filipinos demand a shorter online application process when opening a bank account, with three in five expecting to answer 10 questions or less or they will abandon the process.
This, while one in five Filipinos will forgo opening a bank account through a mobile app or website if asked more than five questions.
This is based on FICO’s 2021 Digital Banking Survey, which was conducted in January 2021 by an independent research company adhering to research industry standards. Specifically, 1,000 Filipino adults were surveyed, as well as 13,000 consumers in the US, UK, Canada, South Africa, Australia, New Zealand, Indonesia, Malaysia, Vietnam , Thailand, Brazil, Colombia and Mexico.
In addition to the aforementioned results, the survey also found that 61% of consumers are more likely to open an account digitally than a year ago, while 26% of Filipinos say financial institutions ask customers too many questions. potentials.
“The pandemic is igniting a digitally-driven mindset in the Philippines, with 61% of consumers more likely to open an account digitally than a year ago,” said Aashish Sharma, senior director of management solutions. decisions for FICO in Asia-Pacific.
“The number of consumers who prefer to open bank accounts digitally has risen to 41% and continues to rise, which is important in a country with a strong branch culture,” he added.
FICO’s survey results focused on how Filipinos had the highest expectations for completing claims in 10 questions or less, for Buy Now Pay Later products (65%), customer accounts. savings (62%) and transaction accounts (60%).
It is interesting to note that this expectation was significantly higher than in the other countries of the survey. For example, only 41% of UK consumers and 51% of Australian consumers expected to answer 10 questions or less when opening a transaction account.
Overall, Filipino consumers want digital experiences that reduce friction and inconvenience. They expect their main bank to know them, 69% want to prove their identity online, and 26% of Filipinos say financial institutions ask too many questions.
“Where there is friction there are opportunities, as the quote says,” Sharma said. “Either you solve it for your customers today, or a competitor will do it tomorrow. Consumers want banks to find answers to application questions through technological approaches such as enhanced identity checks, transaction history analysis, open banking and government databases.
The survey showed that increased friction and security are deemed appropriate by consumers when it comes to applying for and integrating specific high-value financial products.
Despite relatively high levels of ease and confidence in the demand for everyday online financial products such as checking accounts, savings, loans and credit cards, more than half (61%) of customers surveyed ‘expect greater rigor in mortgage loan applications.
Research has shown that only 28% of Filipinos would apply for a mortgage digitally, compared to an average of around one in three (34%). In all countries except the United States and the United Kingdom, branch openings are preferred over online methods. South Africa was a modest outlier with 43 percent of customers preferring online mortgage applications.
Almost two in five Filipinos surveyed said they were prepared to answer 11 to 20 or more questions when it came to applying for a mortgage online.
Meanwhile, Filipinos who open an account digitally prefer to complete the process entirely in any channel of their choice, be it a smartphone or a website. If customers are asked to leave the channel to prove their identity, many of them will abandon the app, either by foregoing opening an account altogether or going to a competitor. Of those who don’t give up immediately, up to an additional 32% will delay the process.
The investigation revealed that any disruption is significant. Asking people to scan and email documents or use a separate identity portal causes almost as much dropout as asking them to visit branches or post documents.
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