News Article


Equifax research reveals mixed reception for new banking technology

By CreditMan Tuesday, May 24, 2016

Consumers are happy for “big brother” to watch over them if it means they can access their money overseas more easily, according to research from Equifax.

The research, conducted in conjunction with Gorkana, revealed 60% of consumers would be happy for their bank or credit card provider to track their mobile phones abroad in order to confirm card transactions are genuine.

However, not all new banking technology has been so readily accepted. Despite bank’s growing use of fingerprints and other biometrics to verify customers’ identify, the research found traditional passwords are still the preferred method for making online transactions. Just under half (48%) of those surveyed selected passwords as their top choice to make online payments, ahead of fingerprint, voice recognition and selfie authentication.

Fingerprint verification came in a close second, with 42% of respondents choosing this as their preferred method for carrying out payments. Voice recognition and selfie techniques lagged far behind with only 5% and 3% of respondents selecting these options respectively.

John Marsden, Head of ID and fraud at Equifax, said: “Banks are increasingly turning to new technology to improve the customer journey and make transactions more secure. GPS tracking to verify card transactions is a great example of how customers can benefit. People don’t want the hassle of approaching their bank before travelling abroad, or to find transactions are declined unnecessarily while they’re away.

“We expect take-up of biometrics will continue to grow as consumers become familiar with the technology and the speed and ease it can bring to transactions. Strong passwords can be difficult to remember and it may not be long before fingerprint verification overtakes the traditional password. We also expect to see a significant rise in voice recognition and selfie techniques as they become more established.”