Consumers prioritising fraud protection when selecting financial services

New research from FICO has revealed that consumers are prioritising fraud protection over other considerations when selecting financial service providers.

Banking-related fraud, such as stolen cards and identity theft leading to application fraud, tops their list of concerns, while traditional scams like cash theft and shopping fraud rank far lower.

The data showed that 35% ranked good fraud prevention as their number one consideration when signing up for a new bank, and 70% had it in their top three. 39% strongly prefer fingerprints as their authentication method; 56% rate biometric security as excellent. Whilst 40% are more likely to open a financial account digitally than they were a year ago. Meanwhile, 18% abandon opening a personal banking account if ID verification is too time-consuming.

James Roche, Principal Fraud Consultant for FICO said “Fraud prevention is no longer just about reducing losses, it’s now a business differentiator.Banks that deliver strong fraud defences while maintaining a smooth digital experience will win customer trust and loyalty.

“The fraud team might be considered an overhead, a necessity to cut fraud losses, but our survey suggests the fraud department is vital for attracting new customers and building trust.

“Customers need to trust their financial services provider, which is why it’s critical for banks to ensure fraud checks and identity proofing are appropriate and proportionate. They should be able to deliver personalised and timely communications about the process to their customers.”

While fraud protection is critical, the FICO survey also highlights consumer intolerance for delays. Half of respondents expect to open a personal account in under 30 minutes, and lengthy verification checks drive abandonment.

Biometrics play a leading role in that trust. Fingerprint and facial recognition dominate usage, while iris scans, though less common, are considered the most secure. The growing confidence in advanced biometric technology reflects consumer demand for both security and convenience.

“Financial institutions must manage multiple fraud types across the customer lifecycle, with each type carrying the potential to damage trust and customer experience,” Roche noted.

“The research points to the importance of an enterprise fraud strategy — one that breaks down silos, integrates data across portfolios and channels, and prioritizes the customer. Operationalising an enterprise fraud strategy can both reduce fraud losses and enhance customer satisfaction, turning a friction point into a foundation of trust.”