Two-Thirds Of Execs Expect Digital Authentication Investments Will Pay For Themselves

The headlines trumpet the gains the cyberthieves are making, through any number of schemes — ransomware, email scams, “phishing” attacks, account takeovers.

As so much of daily life has moved online, as we transact and interact more across digital channels, the fraudsters have taken notice, fine-tuning their efforts to make off with ill-gotten gains from individuals and companies.

In the recently released report “The Next Wave: The Business Adoption of Digital Fraud Solutions,” done in collaboration between PYMNTS and Equifax, it’s hardly the case that the companies themselves are sitting idly by. The data show that 43 percent of companies, as represented by more than 300 decision-makers, plan to invest in digital authentication solutions in a bid to better protect consumers’ data. But there’s a strategic role for that investment strategy. About two-thirds of respondents believe that harnessing technology to verify and authenticate their end-users will in fact help them win new customers.

Frictions In The Current Processes

The urgency to make those investments is apparent. A significant share of companies noted in PYMNTS’ findings that they’ve experienced problems when it comes to verifying consumers. For example, more than 61 percent of P2P lenders and roughly 42 percent of banks/credit unions say that their end customers lack the technology required to navigate in-place verification processes. Notable percentages of firms across those verticals said that the verification processes take too long or lead to “bad” customer experiences.

Against that backdrop, and with an eye toward improving the customer experience, the goals are readily apparent. About 42 percent of companies surveyed aim to increase the number of completed customer transactions, and some 44 percent of respondents want to boost their reputations around digital identity “trust.”

See also: Credit Union Members Say Trust Is More Important Than Physical Branch Locations Now