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With Growing Digital Transactions, Financial Cybercrime and Identity Theft in India are Increasing, Reveals FIS PACE Report

Press Trust of India  |  BENGALURU 

/ -- Key facts:

2019 PACE study finds that financial frauds' share of victims has doubled to 37 percent of respondents year-over-year


Half of all consumers aged 27-37 experienced fraud during last year

96 percent of consumers who were victimized during last year had switched to mobile apps

A new research released today from (NYSE: FIS), a global leader in financial services technology, found that financial fraud has grown substantially since last year, with the share of victims doubling to 37 percent of respondents, and all segments falling victim to fraudsters. group of 27 to 37 has been most impacted by financial fraud than other groups.

FIS' fifth annual PACE report highlights that Indians have embraced digital transactions, but they are yet to learn the do's and don'ts of sharing personal information, as social engineering and phishing emails are rampant.

There is a dramatic correlation in between booming adoption of mobile apps, digital payments and increasing rate of financial fraud. 96 percent of Indian consumers who were victimized by financial fraud during the last year had switched to a mobile app and digital payments, from cash as mode of payment, significantly impacting the country's efforts towards financial integration.

"In the current landscape, it is imperative that the banks enhance investments in security, fraud prevention and customer education. Just as importantly, it can also enhance trustworthiness, which is currently consumers' top priority while Customers' trust in their banks is not just a feeling or an emotion but an objective decision based on a number of expectations. However, banks can earn customers' trust if they focus on safe and secure transactions, fraud prevention and privacy of personal information," said Ramaswamy Venkatachalam, Managing Director, FIS,

The other interesting findings of the report are as follows:

Mobile apps drive engagement and innovation

Banks can no longer treat branches as their only channel to provide personalized service and engage customers. Mobile apps now serve as the digital 'face' for many banks, and a record 41 percent of interactions are now performed via Mobile has become the default channel across all age groups. Looking ahead, Indian consumers want banks to invest in password-free and biometric-based banking, and wallets. 9 in 10 Indian consumers are interested in from their PFIs.

Mobile Payments Are Now Mainstream

While cash and cards are still the preferred way to pay, mobile payments are rapidly gaining traction, especially among Gen Yers (18-26) who are a prime audience for banking providers. In fact, is far ahead of the U.S., U.K. and in adoption. Convenience and a user-friendly interface, coupled with rapidly improving, low cost mobile data connectivity and merchant acceptance, are driving the growth of mobile payments. Mobile wallets that offer cash back and other incentives, are also spurring adoption. UPI 2.0 is also a boon for merchants, as it supports the use of an overdraft account and the verification of invoices prior to payments, moving mobile payments squarely into the Small and Medium Enterprise segment.

Public Sector Banks Leap Ahead in Customer Satisfaction

Customers of top 50 global banks and private sector banks are less satisfied than they were in 2018. However, public sector banks, traditionally seen as slow to react - saw their proportion of 'extremely satisfied' customers climb considerably, rocketing from the worst-performing category to the best. It's clear that innovation is no longer restricted to a certain set of banks. About 28 percent of young Gen Yers (18-26) and 35 percent of older consumers (53+) are not satisfied with their banks.

About

FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Florida, FIS employs more than 47,000 people worldwide and holds leadership positions in payment processing, and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor's 500 Index. For more information about FIS, visit https://

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 16 2019. 16:30 IST
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