Connect with us

Banking

CONSUMER DEMAND FOR BANKS TO ADOPT IRIS SCANNING TECHNOLOGY ALMOST DOUBLES IN TWO YEARS

CONSUMER DEMAND FOR BANKS TO ADOPT IRIS SCANNING TECHNOLOGY ALMOST DOUBLES IN TWO YEARS
  • Iris scanning technology has overtaken fingerprinting as the most popular biometric measure, with 60 per cent saying they’d consider using it, compared to 33 per cent in 2014, according to Intelligent Environments’ Future Password Index (FPI)
  • The FPI 2016 also reveals that consumer demand for all biometric security measures has soared since 2014
  • Over a third (37 per cent) of British consumers are likely to be swayed by quality of security measures when choosing who to bank with, new research reveals
  • Nearly a third (29 per cent) of consumers say they would be more likely to use a bank that offers biometric security

Demand for different types of biometric authentication has risen significantly since 2014, with iris scanning moving ahead of fingerprint technology to the top of Intelligent Environments’ 2016 Future Password Index (FPI). The second iteration of the FPI revealed that 60% of consumers would consider using iris scanning technology in 2016 compared to just 33% two years ago. The latest FPI also highlights that other technologies, such as facial recognition, heartbeat monitors and voice verification have also increased in popularity.

A new addition to the list is vein verification technology, which was added to the list following Barclays’ announcement of late 2014 that they were planning on introducing the technology, with 37 per cent of consumers saying they would consider using it.

The Future Password Index:

RankBiometric authentication methodProportion of consumers interested in using biometrics (2016)Proportion of consumers interested in using biometrics (2014)
1stIris scanner60%33%
2ndFingerprint scanners57%53%
3rdFacial recognition55%30%
4thVoice verification45%27%
5th=Electrocardiogram (ECG) heartbeat monitors37%29%
5th=Vein verification37%n/a

The research, which comes in the wake of a series of public hacks and cyberattacks, reveals that security has become a deciding factor when choosing who to bank with for over a third (37 per cent) of British consumers. In addition, British consumers aren’t totally satisfied with their banks’ security offering, with over a quarter (26 per cent) stating their bank could do more to protect their data from hackers and online fraudsters.

One of the ways consumers are looking for banks to better protect their data is through the use of biometric authentication. Almost half (45 per cent) would like to use biometric tools to access their bank account, and nearly a third (29 per cent) say they would be more likely to use a bank that has biometric security.

Whilst consumer demand continues to grow, biometric adoption remains low. Fingerprinting came out top in terms of use according to Intelligent Environments’ FPI, with 13 per cent saying they already use it, but adoption rates for all other forms of biometric authentication remains at less than 4 per cent. This is despite several financial institutions, such as HSBC and Barclays, as well as challenger bank Atom, which is a client of Intelligent Environments, and global payment provider MasterCard, introducing tools such as vein, voice and selfie (face) authentication technologies.

Clayton Locke, chief technology officer at Intelligent Environments said: “Given the increase in high profile cyberattacks over the past couple of years, it’s no surprise that security is increasingly a priority for consumers. Our previous research shows that traditional PINs and passwords are no longer up to the task of keeping valuable personal and financial details safe.

“Given the clamour for biometrics amongst consumers, those banks who seize the moment and are able to introduce biometric security measures across the board are likely to attract new customers. Over the coming decade, biometrics and security more broadly will undoubtedly become a key battleground within the banking industry where we are likely to see some of the more innovative banks steal a march on their rivals.”

Banking

It’s all relative: Older generations feel helping out the family financially is more important since the Covid-19 outbreak

It’s all relative: Older generations feel helping out the family financially is more important since the Covid-19 outbreak 36

Before Covid, 23% of people prioritised helping younger generations out financially, that increased to a third as a result of the pandemic

A recent survey* conducted by Hodge has revealed that the Covid pandemic has led to more people wanting to help younger family members financially.

A third (31%)** of those questioned said that since the Covid outbreak giving a financial gift to children or grandchildren is more important to them, compared to 23% who said it was a priority before the pandemic.

The traditional “Bank of Mum and Dad” is still very much open for financial help, with parents being responsible for 72% of the gifts, but the study also revealed that financial gifts can come from all corners of the family – including children (14%) and siblings (14%).

The survey also found that a third of people have received a financial gift from family, with those aged between 25-34 as the most likely to receive

The most popular reason for gifting money to family is for special occasions such as a quarter of gifts were given for weddings and birthdays but 11% of people have received money to help with big purchases such as cars and houses. In addition, 19% of people have received help with day to day finances, with around 14% of those receiving a gift have done so to pay off debt.

Emma Graham, Business Development Director at Hodge, said of the research: “Our study showed that, as a nation, we all want to help our family out when it comes to money. And whilst we all think of the Bank of Mum and Dad or Gran and Grandad as a traditional source, we were surprised to see that 14% of brothers and sisters are also helping out.”

The findings come from a recent intergenerational study conducted by Hodge, who interviewed over 3000 people about their attitudes towards finances and their aspirations for the future. The full research findings can be found at https://hodgebank.co.uk/2020/05/19/money-its-all-relative/.

As part of the study, people were also asked about paying back the gift, with 40% of beneficiaries expecting to pay their parents back, but this dropped to 28% if the gift came from grandparents.

From the gift donor’s perspective, 26% expect the gift to be paid back, however just 15% of grandparents expected the money back.

Hodge has produced a set of guides on how families can navigate the tricky subject of giving financial gifts within a family, as well as the considerations and steps that be families should think about taking before a gift is given, such as is it a loan or a gift and thinking about contingencies if the family member’s circumstances change. The guides can be found here: https://hodgebank.co.uk/news/

Emma continued: “It’s clear that families feel strongly about offering financial support to each other if they are able and this has increased since the Covid pandemic. Before Covid, 23% of people prioritised helping their families out financially in the next five years. Since the Covid-19 outbreak that has increased to a third of people saying helping a family member financially had become more important.

“So, it is clear that the Covid-19 lockdown and subsequent predicted economic downturn, has led to more families looking to share wealth to help younger children or grandchildren during this difficult time. Many people may look to Later Life mortgages, where many products have reduced their rates and have flexible lending criteria, to help out a loved during these difficult times.”

Continue Reading

Banking

New report identifies the factors which will determine SMEs’ chances of a successful COVID recovery

New report identifies the factors which will determine SMEs’ chances of a successful COVID recovery 37

·         Analysis of the performance of over 1,000 UK small and medium-sized businesses by Allica Bank provides roadmap for SMEs 

·         Regular training, an openness to innovation, and a clear vision all contribute heavily to an SMEs’ chances of success  

·         Allica Bank has launched a programme of free workshops to expand on the findings and support business owners 

Business bank, Allica Bank has combined data and insight from over 1,000 UK SMEs with a multiple regression analysis to determine what factors most closely aligned with an SMEs’ chances of success and separated the highest-performing businesses from their peers. These ‘rules for success’ have been compiled from the research data to support British businesses as they look to chart a course to post-Covid recovery.  

The full report identifies six behaviours for small and medium businesses to follow, to maximise their chances of a successful COVID recovery. The six top-line rules emphasised by the data were: 

Rule 1: SMEs should regularly train staff 

Of the top-performing businesses analysed, 47% provided training for employees at least on a quarterly basis, compared to just 32% of other businesses. Regular employee training was linked closely to success by the model.  

Despite this, many small businesses have neglected training and nearly half (46%) of the small businesses analysed only provide training for employees about once a year or less often. This included 15% that never provide employer-funded training. This discrepancy could represent a significant opportunity for small businesses to unlock the potential of their employees and thrive in the post-Covid economy. 

Rule 2: SMEs need to focus on innovation and technology 

Looking again to the best performing businesses, 76% were found to either continually (39%) or often (37%) be considering new opportunities for technology in their business. This is compared to only 51% for businesses considered to be outside of the top ranks, out of which only 27% admitted to continually looking for new technology opportunities. 

Rule 3: Small business must have a formal, long-term vision  

Nearly two thirds (66%) of the most successful businesses in the survey had a formal, long-term vision, compared to just 50% of businesses outside the top 100. Looking to the businesses that scored the lowest on the SME Performance index, only 37% claimed to have a formal, long-term vision. 

Rule 4: SMEs should broaden their customer reach and find new markets 

Of the top-performing businesses, 65% of these have overseas customers compared to just 40% of the worst performing businesses. Among the best performing SMEs, over a third (34%) identified international expansion as one of the top three drivers for their success. 

Rule 5: SMEs need to develop reinvestment plans 

22% of the best performing SMEs reinvested some of their profits into the business in the past three years with an average 9% of profits being redeployed. Tellingly, this is nearly double what other businesses admit to reinvesting in their business (5%). 

Rule 6: SMEs should engage with local business organisations and networks  

Of the top 100 SMEs, 30% had obtained external credit to expand over the past three years (compared to 24% of other businesses). Meanwhile, only 16% of all other SMEs had engaged with local enterprise partnerships or growth hubs in the past three years (compared to 23% of the top 100 SMEs). 

Chris Weller, Chief Commercial Officer, Allica Bank, said: 

“All small businesses are different, as are all small business owners, but one trait they share is an innovative resilience. Whilst the coming months and years will undoubtedly continue to present extreme challenges, there is no doubt that small and medium sized businesses across the UK will rise to meet them head on.  

“To give them the best chance to succeed, though, they need to be equipped with the right tools. There is certainly no silver bullet or panacea for every small business, but as this study has found, there are a number of common factors found in the most successful businesses that allow small enterprises to thrive and that they can consider individually for their business.  

“This research has identified common ‘rules for success’ that speak to every aspect of running a business, not just the financials. Once we saw these results, we wanted to use them to help small businesses begin to re-build and prosper, by outlining common factors and then examining how best they can be practically applied to businesses in all sectors of the economy.  

“Small business owners and their employees have been hit hard by the crisis, but they have the drive and resourcefulness to breathe new life into the economy and bring energy to post-Covid Britain. Our commitment at Allica Bank is to give them the support they need to do so, every step of the way.”

The full report contains a wealth of additional data and insight into each of these topics. As part of its mission to empower small businesses, Allica Bank is making the findings freely available and running a series of free online workshops with relevant partner organisations for businesses to attend.

Continue Reading

Banking

New research finds that financial wellbeing should be at the heart of banks digital experiences as the UK enters recession

New research finds that financial wellbeing should be at the heart of banks digital experiences as the UK enters recession 38

MullenLowe Profero have today launched a new report focusing on two communities who will be hardest hit by the recession: 18-25 year olds and small businesses. These communities need financial wellbeing support at the core of an increasingly digital relationship. MullenLowe Profero partnered with Censuswide to survey 1,004 18-25-year-olds and 504 small businesses.

Concern around financial shocks is harming individual’s wellbeing

The survey finds the ability to absorb financial shocks being the critical worry affecting wellbeing and 40% of 18-25-year-olds are sometimes afraid to look at their bank account.

They are seeking financial education to relieve worries

With over two-thirds of respondents demanding financial education in order to find peace of mind and 40% of 18-25-year-olds state that thinking about their money has a negative impact on their wellbeing the report highlights the audience are open to more active support from banks. 60% of the audience feel banks should help them have the capacity to absorb a financial shock.

When our bank is in our pocket reminding us of our anxieties, is there now a duty of care to support our wellbeing?

The survey finds that the digital experience is now the number one reason for choosing a bank for 18-25 year olds.

With this shift in digital preference, people are expecting banks to play a bigger role in wellbeing. 58% of those worried about their money want banks to help them take control.

More than half of 18-25 year olds agree that a bank’s role is now to:

  • provide education on money management
  • help them keep on top of financial goals
  • help them save enough money to cope with the ups and downs of life

People are feeling closer to local communities, but there is a gap in how brands should engage communities in a digital world

Half of 18-25 year olds agree that in the last few months the importance of their local community to them has increased. 40% agree they’ve engaged more with their local community in recent months. There’s a tension between how to engage a community as 60% agree they prefer a bank with better digital tools over a bank that offers more local branches. However, 60% feel banks need a branch presence to support local communities.

The importance of Global Wellbeing rises

Over half of 18-25 year olds agree that the events of the last few months have made them seek out brands that do better for the world. The research findings show that what they want most is to be recognised for their positive behaviours. 56% of the audience highlighted that they would find rewards and benefits for purchasing ethically and sustainably most useful.

Banks digital experience today lack empathy

In this time of reset, the survey found a third of customers and small businesses are considering changing banks in the next year as a result of the impact of the pandemic. The report concludes that brands that will win will champion financial wellbeing in the digital experience through empathy and emotional intelligence.

For the full report, get in touch with MullenLowe Profero at [email protected]

Howard Pull, Head of Digital Transformation Strategy at MullenLowe Profero, said: “Our findings are a wake up call for digital innovation in banking relationships.  With digital experience being the number one choice for selecting a bank, there’s a huge opportunity for banks to support individual wellbeing at scale by understanding and responding to our goals and anxieties to build better money habits.”

Methodology

The research was conducted by Censuswide, with 1,004 18-25-year-old current account holders and 504 small businesses with business bank accounts and annual revenues up to £2m between 23.06.2020 and 29.06.2020. Censuswide abides by and employs members of the Market Research Society which is based on the ESOMAR principles.

Continue Reading

Latest Articles

Return to work: Flexibility, preparation and communication are key 39 Return to work: Flexibility, preparation and communication are key 40
Business16 hours ago

Return to work: Flexibility, preparation and communication are key

By Matt Weston, Managing Director, Robert Half UK As lockdown restrictions ease for the foreseeable future, conversations across the business...

How sustainable AI improves the triple bottom line 41 How sustainable AI improves the triple bottom line 42
Technology17 hours ago

How sustainable AI improves the triple bottom line

An investment in green AI enables financial services firms to align people, profit, and planet By Nick Dale, EVP business...

The impact and implications of Covid-19 on financial reporting 43 The impact and implications of Covid-19 on financial reporting 44
Finance18 hours ago

The impact and implications of Covid-19 on financial reporting

By Mark Billington, Regional Director, Greater China & South-East Asia, ICAEW The economic consequences of Covid-19 have been unprecedented, affecting...

Contis enters RBS Capability and Innovation Fund bid seeking £35 million for disruptive SME growth strategy   45 Contis enters RBS Capability and Innovation Fund bid seeking £35 million for disruptive SME growth strategy   46
Business20 hours ago

Contis enters RBS Capability and Innovation Fund bid seeking £35 million for disruptive SME growth strategy  

Leading payments provider, Contis, has applied for two grants from the RBS & BCR Alternative Remedies Package, totalling £35 million.   Unlike most applicants who...

Four years of digital transformation in four weeks: UK lockdown puts pressure on brands to digitally deliver 47 Four years of digital transformation in four weeks: UK lockdown puts pressure on brands to digitally deliver 48
Business20 hours ago

Four years of digital transformation in four weeks: UK lockdown puts pressure on brands to digitally deliver

Nearly a third (32%) of consumers would switch providers if a brand’s website is unavailable for more than 24 hours...

Demonstrating the value of collaborative leadership during crises 49 Demonstrating the value of collaborative leadership during crises 50
Business2 days ago

Demonstrating the value of collaborative leadership during crises

By Jean Stephens, CEO, RSM International In 2000, a leading expert in behavioural science, Daniel Goleman, outlined the six key...

Empowerment Accelerates Continuous Improvement 51 Empowerment Accelerates Continuous Improvement 52
Business2 days ago

Empowerment Accelerates Continuous Improvement

By Larry Sternberg, JD, Fellow, Talent Plus, Inc. Empowerment First, let me clarify how I am using the word “empowerment”...

What is loneliness and how can you manage it? 53 What is loneliness and how can you manage it? 54
Top Stories2 days ago

What is loneliness and how can you manage it?

By Iris Schaden Your Business and Personal Coach A mere century ago, almost no one lived alone. Today, many do...

How banks can build digital transformation into business continuity 55 How banks can build digital transformation into business continuity 56
Business2 days ago

How banks can build digital transformation into business continuity

By Andrew Warren, Head of Banking & Financial Services, UK&I, Cognizant Businesses around the world are falling victim to the...

Akerton Partners 57 Akerton Partners 58
Finance2 days ago

Akerton Partners

Akerton Partners S.L. is a Spanish independent mid-market corporate finance advisor founded over a decade ago, in 2008, amid a...