Global analytics software leader FICO unveiled its latest global consumer fraud research, highlighting that complex identity checks are stalling Singapore’s digital banking progress.
Many consumers are opting for in-person applications for mortgages and loans due to cumbersome digital experiences when opening an account via mobile app or website.
The global analytics software leader’s survey highlights that Singaporean consumers prioritise good fraud protection, ease of use, and value when selecting financial accounts.
Nearly two in three (63%) consumers expect to answer ten questions or less when applying for a personal bank account, or they will abandon the application.
Close to one in three (29%) will drop out if asked more than five questions. Additionally, about one in three Singaporeans will give up on a personal bank account application after ten minutes, regardless of the number of questions asked.
In the past year, identity checks have become more frequent, with 53% of respondents noticing more checks when logging into bank accounts and 48% during online purchases.
This increase in identity checks by Singapore banks is a direct response to the significant issue of identity theft in the country.

Despite the rise in identity theft, only 6% confirmed their identity had been fraudulently used to open an account, though 25% suspect it.
Frustration with identity verification processes has impacted consumer behavior, with one in five bank customers stopping or reducing their use of existing personal bank accounts and credit cards due to cumbersome and time-consuming checks.
Singaporean consumers show varying levels of patience for different account opening processes.
They are most likely to abandon personal bank accounts, insurance policies, and savings accounts (each at 25%) due to complex or time-consuming identity checks.
Additionally, one in four (24%) have abandoned credit card applications, and close to one in five (17%) have given up on mortgage loan applications for the same reason.

While some consumers tolerate detailed processes for certain financial products that require thorough scrutiny, the expectation for ease of use remains high.
For digital applications, the top benefits identified were the ability to open an account at any time (65%) and speed (59%).
Similarly, Singaporeans ranked the ability to open an account at any time (64%) as the top advantage via the provider’s website, followed by speed (60%).
However, security concerns persist, with two in three Singaporeans (68%) believing in-branch applications offer better security compared to digital channels.
Nearly two in five (37%) count security as a benefit of digital account applications via the provider’s app, and just over one in three (35%) via the provider’s website.
The survey, conducted in November 2023 by an independent research company adhering to research industry standards, included 1,000 Singaporean adults and approximately 12,000 consumers from other countries, including Canada, the U.S., Brazil, Colombia, Mexico, The Philippines, Indonesia, Malaysia, India, Thailand, the U.K., and Spain.

“Consumers are seeking smarter onboarding processes and identity checks that do not compromise security or anti-fraud measures. They are looking for smarter, not riskier processes.
Technologies like improved identity verification, transaction history analysis, open banking and government databases can save them time without compromising security. The key is finding the right balance between security and ease of use, especially for high-value products and interactions.”
said Aashish Sharma, APAC Segment Leader for Risk Lifecycle and Decision Management at FICO.