[Press Release] Consumer survey shows 66.7% feel their bank should be doing more to improve online services during the pandemic

HONG KONG, 16 September 2020 — Recent research by data enrichment fintech gini shows 66.7% of respondents feel their bank should be doing more to improve online services during the pandemic, with one of the major pain points being the lack of clarity in the way information is displayed on transaction histories.  

The survey showed that 81.7% of respondents have seen transactions they don’t recognise on their statements, and the majority used the words, “worried”, “annoyed” and “frustrated” to describe how this problem makes them feel.

 

The pandemic has exacerbated consumer anxiety around unrecognised transactions 

 

While the problem of unrecognised transactions is not a new one, the compounded effect of an unprecedented surge in card-not-present transactions during the pandemic and the resulting increased exposure for digital payments fraud, plus new levels of economic uncertainty, has made consumers more careful about tracking their spending in general. 

 

In gini’s survey, 23.3% of respondents said the increase in online payments this year has made them more worried about fraud, while 53% said they were “always worried about fraud” even before the pandemic.

 

The true cost of unrecognised transactions

In addition to the emotional toll on consumers, unrecognised transactions present a practical problem, too. Most respondents (71.7%) have called or visited a bank branch to get more information on a transaction this year, and the reported time taken to resolve the issue varied from “10 minutes” to “3 months” to “It still hasn’t been resolved.”

For those who raised a transaction query with their bank, 19% said the bank was unable to help, while 25% said they got their money back after the bank launched a chargeback investigation.

The truth is, the problem of unrecognised transactions is costing financial institutions millions of dollars each in customer support and chargeback and fraud investigations every year. Globally, chargebacks are expected to cost financial institutions US$16.4 billion this year alone. 

“It’s interesting to note that the problem of unrecognised transactions is something most banks just put up with,” said Ray Wyand, CEO of gini. “Because they’re not aware it’s actually preventable.”

 

Supporting customers with better online banking services

 

While suggestions for improvement included, “the ability to change address online” and “the ability to reset passwords online”, 100% of respondents said they “want the banking app to show the actual shop name for each transaction.”

 

“The reason this is so difficult to do,” Ray continued, “is that most merchants are registered by their holding company name, which often bears no resemblance to the trading name. So ‘The Dairy Farm Company Ltd’ will show up on your transaction history, instead of ‘Wellcome’, for example.”

 

Not only does this cause confusion for consumers trying to track their spending and make better financial decisions, it also threatens customer retention. The survey showed that 60% of respondents would be likely or very likely to switch to a bank that provided actual merchant names on transactions.

 

“Banks that have invested in a better online customer experience by showing the actual merchant name for each transaction have seen transaction queries reduce by up to 60% and chargeback costs reduce by up to 40% in other countries,” Ray explained. “There’s no reason it can’t be the same in Hong Kong.”

Click here to calculate how much chargebacks are costing your institution today.

 

About gini

gini’s enrichment software matches each raw transaction string to an accurate merchant trading name, category and location, with additional contextual tags, helping banks solve the problem of unrecognised transactions at the source. Founded in 2017, gini is known for its market-leading transaction data enrichment software, and is currently the only data enrichment solution deployable instantly to a client’s private cloud server via AWS. 

www.gini.co

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

Top 5 Clothing Items That Are Contributing to Skims’ Net Worth

Top 5 Clothing Items That Are Contributing to Skims’ Net Worth

In 2022, American media personality Kim Kardashian’s shapewear brand Skims reached a market capitalization of US$3.2 billion. This massive net worth is a byproduct of a lot of factors, such as Kim’s popularity, the brand’s inclusive size range and adaptability (as we saw during the pandemic) to name a few.

5 Companies That Have Already Announced Job Cuts This Year

Layoffs in 2023: 5 Companies That Have Already Announced Job Cuts This Year

The layoff spree at tech giants is bleeding into a new year. It has been just three weeks since we entered 2023, yet the media is buzzing with disturbing numbers about people being laid off by tech companies: At least 104 tech companies let go more than 26,000 employees. This means, more than 1,600 tech employees were dismissed per day in the past couple of weeks. Let’s take a look at the top tech companies that are laying off aggressively.

Goblin Mode

Decoding the World’s Obsession with “Goblin Mode”

Do you find yourself struggling to maintain a positive and productive attitude at work? Are you becoming increasingly irritable or disengaged from constantly feeling overwhelmed and stressed? If so, you’re not alone. Many people experience this state of mind, and some turn on their ‌ “goblin mode” to cope with it. The term “goblin mode” gained popularity in February 2022

Instagram vs YouTube—Which Is Better for Your Business?

Instagram vs YouTubeWhich Is Better for Your Business?

With the rise of social media platforms, like Instagram, TikTok and YouTube, businesses have gained new opportunities to reach their potential customers. It’s important to note that Instagram and YouTube are not just for entertainment; they can be used as powerful tools for marketing and creating brand awareness. Many individuals already use YouTube, TikTok and more to earn money.

What Is Ambient Computing? How Does It Affect Our Lives?

What Is Ambient Computing? How Does It Affect Our Lives?

Picture this: it’s five degrees Celsius outside, and you are freezing, but instead of you adjusting your thermostat, your house automatically realizes that it needs to be warmed up and changes the temperature accordingly. That is what ambient computing is all about. Ambient computing (also called ambient intelligence) refers to technology immersed into your environment. You don’t have to consciously interact with it using screens or keyboards.

How Can AI Be Used in Governance?

How Can AI Be Used in Governance?

One of the many things that artificial intelligence (AI) is capable of doing is helping governments function smoothly. In a previous article, we discussed that, over time, AI would be responsible for more decision-making. As such, it can help governments worldwide make tough decisions by ridding the decision-making process of human biases.