Consumers are ready for the next wave of payment technology, including deployment of AI-driven biometrics to verify identity in digital-first account opening processes, according to Entrust.
The key to future payment solutions
63% of respondents indicated that they are comfortable with AI helping their bank detect fraud. Almost half of respondents abandoned a new bank account application after starting because it didn’t feel secure or was too cumbersome.
The new wave of technology needs to seamlessly mix smartphones and payment cards. While almost half of respondents cited instant access to a digital debit or credit card when opening a new account as an important criterion, 89% of respondents also indicated they still have a preference to use physical credit or debit cards. As the transition to digital banking continues, Millennials and Gen Z respondents indicated they strongly preferred physical cards.
“This report clearly demonstrates that we are entering a hybrid future; banks need to provide both physical and digital payment options in order to remain competitive and relevant,” said Jenn Markey, VP of Payments and Identity, Entrust. “Digital-first experiences can enable AI-driven digital account opening and onboarding while still providing a digital payment card along with the physical credential, allowing customers secure and accessible options.”
Customer trust in biometrics
Supporting both physical and digital services will be vital to a bank’s success in today’s competitive environment.
78% of respondents indicated they would prefer to do their basic daily banking online including making deposits or withdrawals, applying for a credit card, and opening a checking, savings or investment account.
Banks and credit unions must meet customer expectations, security and privacy standards, and revenue goals. All roads start with secure account opening – ensuring trust and identity from the very start of the banking relationship.
The financial institutions that can step up to the plate with a frictionless, holistic, and secure digital experience for their customers can outlast competition and build enduring customer relationships for the long term.
Customers are willing to share necessary information to get a convenient and secure experience, including using new tools and technologies. The majority of survey respondents are comfortable with banks using biometrics like facial recognition for identity verification, offering fresh opportunities for banks to explore new technologies for enhanced security.