Digital banking innovations around the world: What do consumers want?
As digital banking evolves—and more features and tools become available—it’s benefiting the global payments ecosystem. However, consumers’ interest in the latest banking innovations varies across key regions, and understanding those differences can help merchants and issuers better tailor their experience to consumers in those markets.
A recent Ethoca research study looked at banking behaviors and preferences1 in four regions (the United States, the United Kingdom, Brazil and Australia) to better understand what features or capabilities consumers in those markets would value most. These insights highlight some of the biggest opportunities for innovating the consumer digital-banking experience and how regional differences in behaviors and needs may come into play. In other words, they can help merchants and issuers identify strategies for giving customers an overall better banking experience.
Here are the five consumer digital-banking behaviors looked at in the study and their adoption by region.
#1: Finding an unrecognized purchase in their bank app
Most consumers surveyed have found an unrecognized purchase while perusing their transaction history—perhaps because the transaction description includes an unfamiliar merchant instead of its more recognizable name. Given that chargebacks due to transaction confusion seem to be growing—with first-party fraud accounting for an estimated 60%-80% of all chargebacks—it makes sense for merchants and issuers to pay attention and look for ways to reduce transaction confusion.2
However, the trend varies some by region. In the U.K., for example, 75% of consumers said they’d found an unrecognized purchase, with Australia closely behind, at 74%. This was somewhat less so in Brazil, at 69%, and the U.S., at 59%.
#2: Reporting an unrecognized transaction to their bank
Many consumers report genuine purchases they don’t recognize, which often leads to transaction disputes and chargebacks that are costly for merchants and issuers. Beyond reinforcing the need for tools that help consumers recognize transactions, the research suggests that consumers want features that make it easier for them to report unrecognized transactions.
Brazil leads in terms of consumers who have reported an unrecognized purchase to their bank, at 90%, with the U.S. being a close second, at 85%. However, the majority of consumers in Australia and the U.K. have also reported unfamiliar transactions, at 75% and 69%, respectively.
#3: Wanting clearer merchant information
The research found that most consumers want clear merchant information when reviewing their purchase transaction history in their digital banking app. In fact, the study found that more than 90% of consumers in each of the four regions want more merchant details—which could include a recognizable merchant name, its address or its logo.
Consumers in Brazil and the U.K. desire that transparency the most, with 98% and 94% of consumers saying they’d like more merchant detail, respectively.
#4: Finding subscription management tools useful
Subscriptions are becoming an increasingly popular way to buy and sell products and services, with 56% of merchants surveyed saying they already offer subscriptions and the remaining 44% say they’re considering it.3
So, it’s understandable that the majority of consumers would manage their subscription-based purchases within their digital banking app. The U.K. leads, at 62%, followed by Brazil, at 59%, the U.S., at 54%, and Australia, at 52%.
#5: Finding digital receipts helpful
Most consumers around the globe would highly value having digital receipts made available through their banking app—allowing them to easily access those receipts in one convenient place. Already, 92% of merchants offer digital receipts or plan to, while 80% say they help lower chargeback rates.3
The survey found that 96% of consumers in Brazil would like digital receipts made available through their banking app, followed closely behind by 94% in the U.S., 93% in Australia and 89% in the U.K.
These are just some of the findings from the report. To learn more about the trends and innovations shaping the future of digital banking, view our report.
Sources:
Datos Insights. Digital Banking and Consumer Clarity: Q4 2023 Survey Findings.
TSYS, Clearing Up the Confusion Around Friendly Fraud, Aug. 23, 2023 https://www.tsys.com/insights/2023/08/30/clearing-up-the-confusion-around-friendly-fraud
Datos Insights. Merchant Perspectives on Digital Receipts and Digital Banking.
