New Zealand
New Zealand New Zealand
Consumers make most of their payments by internet banking
  • 74%
    BFSI
  • 70.5%
    TELCO
  • 54.5%
    RETAIL
  • 46.5%
    BFSI
  • 39.6%
    TELCO
  • 40.7%
    RETAIL
  • A higher percentage make payments via internet banking to banks and insurance companies, telcos, and retailers, respectively, compared to the regional average
  • Impact: Anti-fraud capabilities critical to the increased digital transaction frequency and customers’ trust in banks
Australia
Australia Australia
Consumers are most satisfied with the post-fraud service of banks and insurances companies
  • More than 70% satisfaction rate compared to 59.7% on average
  • Impact: Increased trust in BFSIs
Indonesia
Indonesia Indonesia
Consumers that encountered most fraud incidents in the past 12 months
49%
34.7%

AP Average

  • 49.8% have experienced fraud at least once compared to 34.7% on average
  • Impact: Overall anti-fraud capabilities need improvement
Singapore
Singapore Singapore
Consumers have the highest trust towards government
AP Average
  • 75.5% choose government agencies, compared with 51.7% on average
  • Impact: Trust of personal data protection is centered around government agencies
Vietnam
Vietnam Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months
  • 55%
    TELCO
  • 54.5%
    RETAIL
  • 32.8%
    TELCO
  • 35.2%
    RETAIL
  • 55% and 54.5% have experienced fraud at least once in retail and telco, respectively, compared to 32.8% and 35.2% on average
  • Impact: Overall anti-fraud capabilities need improvement
Thailand
Thailand Thailand
Most Thai consumers believe speed and resolution are severely lacking (response/ detection speed toward fraud incidents)
AP Average
  • 60.5% think it is most important, compared to 47.7% on average
  • Impact: Response time as one of key factors to fraud management to retain customers and gain their trust
India
India India as standalone
Consumers have the largest number of shopping app accounts in the region
India
  • Average of three accounts per person
  • Impact: Highest exposure to online fraud
Hong Kong
Hong Kong Hong Kong
The least percentage of consumers with high satisfaction level toward banks and insurance companies’ fraud management
AP Average
  • Only 9.7% are most satisfied compared to 21.1% on average
  • Impact: effective response towards fraud incidents to be improved
China
China China
Consumers are the most tolerant toward submitting and sharing of personal data
AP Average
  • 46.6% compared to the AP average of 27.5% are accepting of sharing personal data of existing accounts with other business entities
  • Impact: higher exposure of data privacy and risk of fraud
alert
Japan Japan as standalone
Consumers most cautious on digital accounts and transactions
50.7% Actively maintain digital accounts’ validity
27% AP Average
45.5% Do not do online bank transfers
13.5% AP Average
  • More than 70% did not encounter fraud incidents in past 12 months, compared to 50% on average
  • Impact: Relatively low risk of fraud

Removing the debt stigma

Removing the debt stigma

Considering that debt can be used to describe anything from a house mortgage or overdraft to even an unpaid bill, we can all relate to ‘owing money’ in some way.

 

The latest data from the Australian Bureau of Statistics shows nearly 73% of households have some form of debt, and almost 30% said the amount owed was three or more times their income.

 

In fact, it is household bills that Australians are struggling with the most according to the findings in our Global Insights Report. As a result of COVID-19, 45% of Australians in the survey said they found it difficult to pay off monthly bills mid-last year. One third of the population still feel this way, despite many people feeling more financially stable now.

 

It’s clear – debt is a familiar and relatable topic for most of us. But with something as normal as monthly bills being a common cause of debt, why does this topic carry such a stigma?

 

The cause of debt stigma

 

Part of the problem causing awkwardness around debt and repayments is the demeaning way that this debt is collected, an altogether sub-par customer experience. Often people are approached in an unfriendly manner that feels harassing or have heavy legal language thrown at them, leading many to bury their heads.

 

Nearly 50% of people would switch lender if they had a bad debt-collection experience our research found, so it’s time for a new approach.

 

A new approach to collections

 

For many years this has been on the mind of lenders, who have done a lot of work towards gaining a better understanding of their customers’ specific circumstances, so they can identify appropriate repayment solutions and debt services for each individual. This is what we call a people-led approach to debt collection, and it has been long overdue.

 

The new systems being implemented into lenders’ debt collections processes are helping make the subject of debt an open and positive one and enabling Australians to feel more empowered when it comes to managing debt. 

 

The power of data and analytics to help remove debt stigma

 

Part of the success of these new processes is down to the power of data and analytics. Collaborations like the one between Experian and InDebted aim to help lenders better understand and differentiate the preferences of the individual. This use of data offers a far more personalised and approachable service, in turn reducing the friction and awkwardness when addressing debt and repayments.

 

Even the small details such as knowing whether someone would prefer reminder texts, or a scheduled chat on the phone, contribute to making repayments as easy as possible. Ultimately, providing customers with the ability to self-serve at a time that suits them results in a simple, convenient and positive experience.  

 

The future of debt collection

 

Now almost all of InDebted’s business is carried out digitally and over 90% of their customers use an online portal to manage their accounts without speaking to anyone at all. This indicates Australians clearly feel more comfortable taking control of their finances by proactively scheduling their own payments versus talking through their debt on the phone, or actioning requests sent through the mail.

 

The increasing people-led and digital approach across lenders means the future of debt collection will result in more manageable repayment plans, a better customer experience and soon become an everyday normality. 

 

And as it should be - because at the end of the day, it’s an everyday reality so many of us face.

 

If we can assist you in any way, please get in touch with us using the form below.

 

By Mathew Demetriou, General Manager Decision Analytics, Experian A/NZ

Read full article

Mathew Demetriou

By Mathew Demetriou 05/27/2021

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