Majority of Malaysian consumers (77%) view security as the most important element of an online experience followed by convenience (12%) and personalisation (11%).
According to the Asia Pacific edition of Experian’s Global Identity and Fraud Report, 57% of Malaysia businesses experienced an increase in online fraud-related losses over the past 12 months, which includes account takeover attacks and fraudulent account openings.
As a result, more than two thirds (64%) of the 501 consumers in Malaysia surveyed felt that the trade-off for convenience in today’s digital society is decreased privacy. The trade-off also meant that businesses in Malaysia are collecting more personalised data to develop a more tailored user experience, as well as targeted products and offers. According to the study, the value that Malaysian consumers place on security is the second highest in Asia Pacific, after China consumers.
Transparency is also an area of concern for Malaysian consumers, with 81% expecting full transparency from businesses on how their information is used. As such in the last six months, 53% of Malaysian businesses surveyed have invested more into programmes designed to increase transparency, with 61% having plans to invest more into such initiatives. Some examples include educating consumers, communicating terms more concisely and helping consumers feel in control of their personal data.
Meanwhile, data is a sector that is forecasted to grow more than threefold from 2018 to 2025 in Malaysia. Beyond consumer convenience, positive developments in data will be crucial in driving Malaysia’s digital potential and its Digital Transformation Acceleration initiative. According to Experian’s report, new technologies and advanced authentication solutions are viewed favourably by consumers. When doing online banking, for instance, 85% expressed high confidence in physical biometrics, while 86% indicated high confidence in behavioural biometrics.
Dev Dhiman, MD, Southeast Asia and Emerging Markets, Experian said that with interactions between businesses and consumers increasingly taking place over digital channels, building an environment characterised by security and mutual trust should be a leading priority. It will be imperative for business leaders to invest in identity verification and fraud management capabilities to realise the full potential of Malaysia’s digital economy, he said.
Dhiman added that consumers are increasingly looking to organisations to implement measures to enhance security and protection in digital interactions. “They are also looking to them for a more simplified approach. One approach that has proven both effective and well received among consumers is biometrics, which speeds up and simplifies the identity verification process for consumers”,” he said.
Experian’s study surveyed nearly 6,000 consumers and 590 businesses across Asia Pacific, highlighting that trusted online relationships are based on businesses providing both a secure environment and seamless consumer experiences. About 501 consumers and 51 businesses from Malaysia participated in the study.
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