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Global Consumer Survey: Consumer Trust and Security Perceptions
FEBRUARY 2017
Shirley Inscoe
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
© 2017 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited. 101 Arch Street, Suite 501, Boston, MA 02110 • Tel +1.617.338.6050 • Fax +1.617.338.6078 • [email protected] • www.aitegroup.com
2
TABLE OF CONTENTS IMPACT POINTS .............................................................................................................................................. 4
INTRODUCTION .............................................................................................................................................. 5
METHODOLOGY ........................................................................................................................................ 5
THE CONTINUING RISE OF THE MOBILE CHANNEL ......................................................................................... 7
MOBILE WALLET SECURITY ..................................................................................................................... 10
RETAILERS ..................................................................................................................................................... 14
IN-PERSON SHOPPING ............................................................................................................................ 14
ONLINE SHOPPING .................................................................................................................................. 17
FRAUD AND DATA BREACHES ................................................................................................................. 20
STORED DATA ............................................................................................................................................... 23
PROTECTING CARD AND ACCOUNT INFORMATION ..................................................................................... 27
CONSUMER FRAUD CONCERNS .................................................................................................................... 30
FRAUD EDUCATION ...................................................................................................................................... 35
CONSUMER RESPONSE TO FRAUD ALERTS ................................................................................................... 39
CONCLUSION ................................................................................................................................................ 46
RELATED AITE GROUP RESEARCH ................................................................................................................. 47
ABOUT AITE GROUP...................................................................................................................................... 48
AUTHOR INFORMATION ......................................................................................................................... 48
CONTACT ................................................................................................................................................. 48
LIST OF FIGURES FIGURE 1: COUNTRIES SURVEYED IN 2014 AND 2016 .................................................................................... 6
FIGURE 2: MOBILE WALLET ADOPTION IN THE AMERICAS ............................................................................ 7
FIGURE 3: MOBILE WALLET ADOPTION IN EUROZONE .................................................................................. 8
FIGURE 4: MOBILE WALLET ADOPTION IN EMEA (NON-EUROZONE)............................................................. 8
FIGURE 5: MOBILE WALLET ADOPTION IN THE ASIA-PACIFIC ........................................................................ 9
FIGURE 6: PERCEPTIONS OF MOBILE WALLET DATA SECURITY IN THE AMERICAS ...................................... 10
FIGURE 7: PERCEPTIONS OF MOBILE WALLET DATA SECURITY IN EUROZONE ............................................ 11
FIGURE 8: PERCEPTIONS OF MOBILE WALLET DATA SECURITY IN EMEA (NON-EUROZONE) ...................... 12
FIGURE 9: PERCEPTIONS OF MOBILE WALLET DATA SECURITY IN THE ASIA-PACIFIC .................................. 13
FIGURE 10: IN-PERSON SHOPPING IN THE AMERICAS .................................................................................. 14
FIGURE 11: IN-PERSON SHOPPING IN EUROZONE ........................................................................................ 15
FIGURE 12: IN-PERSON SHOPPING IN EMEA (NON-EUROZONE) .................................................................. 16
FIGURE 13: IN-PERSON SHOPPING IN THE ASIA-PACIFIC.............................................................................. 17
FIGURE 14: ONLINE MERCHANT SECURITY IN THE AMERICAS ..................................................................... 18
FIGURE 15: ONLINE MERCHANT SECURITY IN EUROZONE ........................................................................... 19
FIGURE 16: ONLINE MERCHANT SECURITY IN EMEA (NON-EUROZONE) ..................................................... 19
FIGURE 17: ONLINE MERCHANT SECURITY IN THE ASIA-PACIFIC ................................................................. 20
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3
FIGURE 18: STOP SHOPPING IN THE AMERICAS ........................................................................................... 20
FIGURE 19: STOP SHOPPING IN EMEA .......................................................................................................... 21
FIGURE 20: STOP SHOPPING IN THE ASIA-PACIFIC ....................................................................................... 22
FIGURE 21: SECURITY OF STORED DATA IN THE AMERICAS ......................................................................... 23
FIGURE 22: SECURITY OF STORED DATA IN EUROZONE ............................................................................... 24
FIGURE 23: SECURITY OF STORED DATA IN EMEA (NON-EUROZONE) ......................................................... 25
FIGURE 24: SECURITY OF STORED DATA IN THE ASIA-PACIFIC ..................................................................... 26
FIGURE 25: BEST DATA PROTECTORS IN THE AMERICAS.............................................................................. 27
FIGURE 26: BEST DATA PROTECTORS IN EUROZONE.................................................................................... 28
FIGURE 27: BEST DATA PROTECTORS IN EMEA (NON-EUROZONE) .............................................................. 28
FIGURE 28: BEST DATA PROTECTORS IN THE ASIA-PACIFIC.......................................................................... 29
FIGURE 29: GREATEST FRAUD RISKS IN THE AMERICAS ............................................................................... 31
FIGURE 30: GREATEST FRAUD RISKS IN EUROZONE ..................................................................................... 32
FIGURE 31: GREATEST FRAUD RISKS IN EMEA (NON-EUROZONE) ............................................................... 33
FIGURE 32: GREATEST FRAUD RISKS IN THE ASIA-PACIFIC ........................................................................... 34
FIGURE 33: FRAUD EDUCATION IN THE AMERICAS ...................................................................................... 35
FIGURE 34: FRAUD EDUCATION IN EUROZONE ............................................................................................ 36
FIGURE 35: FRAUD EDUCATION IN EMEA (NON-EUROZONE) ...................................................................... 37
FIGURE 36: FRAUD EDUCATION IN THE ASIA-PACIFIC .................................................................................. 38
FIGURE 37: ACTIONS FOLLOWING SUSPICIOUS ACTIVITY IN THE AMERICAS ............................................... 39
FIGURE 38: ACTIONS FOLLOWING SUSPICIOUS ACTIVITY IN EUROZONE ..................................................... 40
FIGURE 39: ACTIONS FOLLOWING SUSPICIOUS ACTIVITY IN EMEA (NON-EUROZONE) ............................... 40
FIGURE 40: ACTIONS FOLLOWING SUSPICIOUS ACTIVITY IN THE ASIA-PACIFIC ........................................... 41
FIGURE 41: CONTACT PREFERENCES IN THE AMERICAS ............................................................................... 42
FIGURE 42: CONTACT PREFERENCES IN EUROZONE ..................................................................................... 43
FIGURE 43: CONTACT PREFERENCES IN EMEA (NON-EUROZONE) ............................................................... 44
FIGURE 44: CONTACT PREFERENCES IN THE ASIA-PACIFIC ........................................................................... 45
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4
IMPACT POINTS
This Impact Report, based on a Q2 2016 ACI Worldwide-sponsored study of
6,035 consumers in 20 countries, provides an overview of respondent attitudes
toward fraud and data protection, and the ways respondents want to engage
with firms to minimize fraud. Where applicable, it also compares these results
with those from a similar survey in 2014.1
Sixty-five percent of consumers indicate they would stop shopping with a given
merchant after experiencing fraud or a data breach.
Even though data breaches have been common, consumer confidence in
merchants’ ability to protect personal information increased to 43% in 2016
from 34% in 2014, among the 17 countries surveyed in both studies.
Across all regions, the number one fraud concern is theft by computer hacking.
In some markets with very strict data security guidelines, such as Germany and
Singapore, consumers report some of the lowest levels of confidence in data
security and control.
Mobile wallet and payments adoption tends to be strongest in regions where
infrastructure for other electronic payments options, particularly card payments,
is less mature.
Consumers are generally not confident in firms’ ability to protect their stored
data. Only in the U.S., India, and Thailand do consumers report at least 50%
confidence that their stored data is well-protected.
Consumers are generally willing to interact with organizations to mitigate fraud,
and mobile is the primary channel, either voice or electronic, through which
they wish to engage. Indeed, 75% of consumers are very interested in receiving
a call or SMS message to their mobile device.
1. See Aite Group’s report Global Consumers: Concerned and Willing to Engage in the Battle Against
Fraud, July 2014.
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INTRODUCTION
Consumers continue to face a range of changes in technology and in the way technology is
applied to financial services. These changes have impacted how people shop, how people pay,
and how people perceive the value of their personal data and firms’ custodianship of that data.
Consumers are more aware of fraud and are concerned about data breaches, with at least 2,260
confirmed data breaches in 2015 alone.2
Importantly, consumers show a willingness to help to combat fraud, particularly by leveraging
mobile technology. This willingness opens opportunities for firms to optimize the ways in which
they reach out to and communicate with consumers, ultimately improving customer experience
while reducing operational costs and fraud losses.
This Impact Report is the second in a two-part series on how financial fraud affects consumers’
perceptions.3 The report covers consumer perceptions in 20 different countries in the Americas
(North America and South America), Europe, the Middle East, and Africa (EMEA), and the Asia-
Pacific region.
METHODOLOGY
ACI Worldwide, a global leader in electronic payments for financial institutions, retailers, and processors, conducted online quantitative market research in April 2016 and surveyed 6,035 consumers. The study was conducted in a total of 20 countries in the following regions:
The Americas: Brazil, Canada, Mexico, and the United States
EMEA: France, Germany, Italy, the Netherlands, South Africa, Sweden, the United Arab Emirates (UAE), and the United Kingdom
The Asia-Pacific region: Australia, India, Indonesia, New Zealand, and Singapore
China, Russia, and Poland were removed compared to the 2014 study, and Spain, Thailand, and Hungary were added for 2016.
Figure 1 highlights the countries included in the survey.
2. “2016 Data Breach Investigations Report,” Verizon, accessed May 22, 2016,
http://www.verizonenterprise.com/resources/reports/rp_DBIR_2016_Report_en_xg.pdf.
3. See Aite Group’s report 2016 Global Consumer Card Fraud: Where Card Fraud Is Coming From, July 2016.
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Figure 1: Countries Surveyed in 2014 and 2016
Source: Aite Group
In total, 6,035 consumers were included in the research—approximately 300 consumers, divided equally between men and women, participated in each of the 20 countries. Of the total, 5,861 own one or more type of payment card—credit card, debit card, or prepaid card. This is the fourth time that ACI has fielded this type of survey, and some comparative results are included from 2012 and 2014.
In each country, the data have a margin of error of approximately five points. Statistical tests of significance, where shown, were conducted at the 95% level of confidence.
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7
THE CONTINUING RISE OF THE MOBILE CHANNEL
Mobile banking and payments have been hot topics for a few years, with many predicting the
end of traditional card payments and overstuffed “Costanza” wallets. Rumors of cards’ demise
have been a bit overblown, particularly in countries with very well-established card payments
infrastructure. There is much more adoption of mobile banking and payments in traditionally
cash-focused economies.
Mexico and Brazil have much higher rates of mobile wallet adoption than do the U.S. or Canada.
Existing infrastructure and entrenched consumer behaviors leave mobile wallets a solution in
search of a problem in mature card markets, such as the U.S. and Canada. That said, there is new
growth in U.S. and Canada, most likely driven by a combination of more point-of-sale terminals
accepting contactless mobile payments and mobile wallets built into many of the newer mobile
phones on the market (Figure 2).
Figure 2: Mobile Wallet Adoption in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014, and in 17 countries, Q3 2012
There is a similar pattern across EMEA, where most countries have well-established card
payments systems, including contactless e-purse payments for small purchases and transit
payments. In fact, some countries in the Nordics are working to eliminate cash. For example, the
Danish government has proposed moving toward electronic money for most transactions (Figure
3 and Figure 4).4
4. Virginia Harrison, “This Could Be the First Country to go Cashless,” CNN Money, published June 2,
2015, accessed October 10, 2016, http://money.cnn.com/2015/06/02/technology/cashless-society-denmark/.
11%16%
7%4%
20% 19%
6%4%
38%36%
17%14%
Mexico Brazil U.S. Canada
Consumer Use of Mobile Wallet in the Americas, 2012, 2014, and 2016
2012 (n=1,224) 2014 (n=1,222) 2016 (n=1,173)
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Figure 3: Mobile Wallet Adoption in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014, and in 17 countries, Q3 2012
Figure 4: Mobile Wallet Adoption in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014, and in 17 countries, Q3 2012
In most cases, mobile wallet adoption in EMEA is generally not showing dramatic increases, and
for the most part, adoption is less than 25%. A notable exception is the UAE—part of this higher
18%
6% 7% 8%
22%
9% 10%6%
25% 24%20%
15%13%
Spain Italy The Netherlands France Germany
Consumer Use of Mobile Wallet in EMEA, 2012, 2014, and 2016
2012 (n=1,206) 2014 (n=1,211) 2016 (n=1,506)
26%
15% 17%
8%
24%
14%19%
6%
38%
23% 23%
14% 13%
UAE Sweden South Africa U.K. Hungary
Consumer Use of Mobile Wallet in EMEA, 2012, 2014, and 2016
2012 (n=1,236) 2014 (n=1,243) 2016 (n=1,496)
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adoption rate could hinge on government and industry initiatives supporting contactless,
cashless payments in the UAE.5
The case in the Asia-Pacific is quite different, with high rates of mobile wallet adoption in India,
Thailand, and Indonesia. This is likely due to a large number of mobile-based peer-to-peer
payments, and because mobile devices act as the primary access to the internet for many
individuals and households. In many cases, individuals may carry multiple devices and thus have
multiple wallets.
As with the U.S. and Western Europe, Singapore, Australia, and New Zealand have lower rates of
adoption, primarily due to more mature card payments infrastructure and consumers’ general
comfort utilizing plastic cards (Figure 5).
Figure 5: Mobile Wallet Adoption in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014, and in 17 countries, Q3 2012
Mobile wallet adoption in Asia is generally much higher than in other parts of the world,
especially in fast-growing economies such as India, Thailand, and Indonesia. These regions are
generally leap-frogging traditional card infrastructure and usage patterns while adopting the
latest and greatest technologies. These markets are also very mobile-oriented in that most
people’s internet connection is through a mobile device rather than a desktop or laptop.
5. Ehsaan Ahmed, “The Rising Trend of Cashless Payments,” Gulf News, published July 17, 2016, accessed
October 10, 2016, http://gulfnews.com/business/sectors/banking/the-rising-trend-of-cashless-payments-1.1863595.
34%
25%23%
5%
47%
32%
23%
8%11%
56%51%
47%
28%
18%15%
India Thailand Indonesia Singapore Australia New Zealand
Consumer Use of Mobile Wallet in the Asia-Pacific, 2012, 2014, and 2016
2012 (n=1,236) 2014 (n=1,243) 2016 (n=1,496)
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10
MOBILE WALLET SECURI TY
Consumer perceptions of bank-based mobile wallet security vary across the globe, though in
general consumers have a high degree of confidence in the security of mobile wallets. In most
geographies surveyed, roughly 80% of consumers report being at least somewhat comfortable
with mobile wallet security. In most cases, confidence in 2016 is similar to what it was in 2014,
with the exceptions of Brazil, Mexico, and New Zealand, where it has increased statistically. It is
notable that in 2014 a generally very small number of respondents used mobile wallets; that
number increases in the 2016 survey, indicating greater adoption of mobile wallets among
consumers.
In the Americas, high levels of confidence remained stable or increased. At first glance, it
appears confidence decreased in the U.S. Due to the very small population using mobile wallets
in 2014, this is not a statistically valid decrease. While there is variation across geographies,
overall confidence across the region remains above 80% (Figure 6).
Figure 6: Perceptions of Mobile Wallet Data Security in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014
44%
45%
42%
39%
30%
44%
34%
21%
40%
45%
51%
52%
64%
56%
61%
50%
16%
9%
4%
8%
6%
6%
21% 7%
2016 (n=43)
2014 (n=11)
2016 (n=49)
2014 (n=24)
2016 (n=50)
2014 (n=18)
2016 (n=107)
2014 (n=56)
Canada
Mexic
oU
.S.
Bra
zil
Q. How secure do you think the information on your phone or tablet is? (Consumers who use mobile wallets)
Secure—I trustthe bank to protectmy personalinformation
Somewhat secure—I realize this is a new technology which is still being explored but I like the convenience so I use it
Unsure—I don’t know what the bank does to protect my card or bank information on the mobile phone or tablet or whether the device itself is secure
Not secure
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11
In EMEA, overall confidence remains generally high, though it varies noticeably across different
countries and is often lower than in the Americas and the Asia-Pacific. There are noticeable, but
not statistically significant, increases in confidence across the region with the exception of the
Netherlands. Even there, the decrease in confidence is not statistically significant and is likely
more representative of a larger sample size (more than double) than a dramatic decrease in
overall consumer confidence.
Much like other regions, the EMEA experiences a complex interplay between mobile wallet
adoption and consumer confidence—as more consumers adopt mobile wallets, the wallets
become a bigger target for criminals. And more people will be exposed to fraud, driving down
confidence, which in turn could negatively impact adoption in the future (Figure 7 and Figure 8).
Figure 7: Perceptions of Mobile Wallet Data Security in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014
40%
42%
38%
37%
28%
33%
16%
18%
31%
45%
32%
54%
47%
50%
56%
62%
53%
58%
15%
13%
8%
11%
18%
11%
21%
25%
5%
13%
5%
5%
2016 (n=47)
2014 (n=31)
2016 (n=39)
2014 (n=19)
2016 (n=60)
2014 (n=27)
2016 (n=73)
2014 (n=68)
2016 (n=77)
Fra
nce
Germ
any
The
Neth
erlands
Italy
Sp
ain
Q. How secure do you think the information on your phone or tablet is?(Consumers who use mobile wallets)
Secure—I trustthe bank to protectmy personalinformation
Somewhat secure—I realize this is a new technology which is still being explored but I like the convenience so I use it
Unsure—I don’t know what the bank does to protect my card or bank information on the mobile phone or tablet or whether the device itself is secure
Not secure
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12
Figure 8: Perceptions of Mobile Wallet Data Security in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014
Consumer confidence with mobile wallets in the Asia-Pacific region shows more strong
differences between countries than in the Americas or EMEA, but around 80% of consumers
report they feel at least somewhat secure with mobile wallets. India is a standout, with over 90%
of consumers reporting they feel at least somewhat secure.
New Zealand was the only standout with strong confidence that doubled since 2014. This may
be due in part to “Mobile Device Rules & Standards,” published in 2014 by Payments NZ, which
oversees New Zealand’s payments infrastructure.6 These standards are meant to protect
consumers and businesses and may have an impact on consumer confidence (Figure 9).
6. “Mobile Device Rules & Standards,” Payments NZ, published May 14, 2014, accessed October 31,
2016, http://www.paymentsnz.co.nz/cms_show_download.php?id=108.
56%
37%
36%
37%
44%
40%
25%
29%
19%
28%
49%
39%
56%
33%
50%
62%
43%
50%
10%
11%
20%
22%
9%
11%
21%
21%
5%
5%
7%
10%
2016 (n=39)
2016 (n=71)
2014 (n=61)
2016 (n=41)
2014 (n=18)
2016 (n=113)
2014 (n=76)
2016 (n=70)
2014 (n=42)
Hungary
So
uth
Afr
ica
U.K
.U
AE
Sw
eden
Q. How secure do you think the information on your phone or tablet is?(Consumers who use mobile wallets)
Secure—I trustthe bank to protectmy personalinformation
Somewhat secure—I realize this is a new technology which is still being explored but I like the convenience so I use it
Unsure—I don’t know what the bank does to protect my card or bank information on the mobile phone or tablet or whether the device itself is secure
Not secure
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13
Figure 9: Perceptions of Mobile Wallet Data Security in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014
51%
54%
42%
23%
35%
31%
19%
29%
44%
21%
31%
43%
39%
44%
58%
52%
51%
60%
48%
36%
62%
49%
6%
5%
13%
19%
11%
17%
20%
22%
16%
18%
18%
4%
2016 (n=168)
2014 (n=145)
2016 (n=55)
2014 (n=26)
2016 (n=142)
2014 (n=106)
2016 (n=85)
2014 (n=73)
2016 (n=45)
2014 (n=34)
2016 (n=154)
India
Au
str
alia
Indonesia
Sin
ga
pore
New
Ze
ala
nd
Th
aila
nd
Q. How secure do you think the information on your phone or tablet is?(Consumers who use mobile wallets)
Secure—I trustthe bank to protectmy personalinformation
Somewhat secure—I realize this is a new technology which is still being explored but I like the convenience so I use it
Unsure—I don’t know what the bank does to protect my card or bank information on the mobile phone or tablet or whether the device itself is secure
Not secure
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14
RETAILERS
Retail transactions are some of the most common and impactful transactions for consumers. The
impacts for retailers are also substantial. If customers don’t trust a retailer to protect their
information, they will go somewhere else to make purchases. This applies to both in-person and
online transactions covered below.
IN-PERSON SHOPPING
Many consumers indicate a lack of trust in stores where they shop in person to use security
systems that adequately protect their card or account information. Part of this may be attributed
to a number of very large and well-publicized retail breaches over the last few years, especially
in the U.S. Consumers report less confidence in brick-and-mortar merchants’ ability to protect
payment information than they do in online merchants’ abilities.
In general, across geographies, confidence has been rising compared to 2014. Some of the
lowest confidence is found in fast-growing economies in South and Southeast Asia. Yet even
here, confidence levels are quite high, with no country below 80% confidence.
Confidence levels that retailers protect customer data are relatively close across the Americas,
ranging from 66% in the U.S. to 55% in Brazil, a statistically significant difference. Both Mexico
and Brazil saw 10-point increases compared to 2014 results (Figure 10).
Figure 10: In-Person Shopping in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014
66%
62%
60%
60%
57%
45%
55%
45%
32%
35%
38%
33%
41%
49%
43%
50%
7%
6%
5%
2016 (n=300)
2014 (n=311)
2016 (n=303)
2014 (n=304)
2016 (n=303)
2014 (n=307)
2016 (n=300)
2014 (n=300)
U.S
.C
anada
Mexic
oB
razil
Q. Do you think most of the stores where you shop in person use security systems that are able to protect your card/account information when you
shop?
Yes No Don't use a card to paywhen shopping in person
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15
The confidence levels in EMEA vary more widely than in the Americas but still track in the 55% to
65% range in most countries. In some countries, such as Germany, Italy, and Hungary, larger
portions of respondents report not using cards for in-person shopping (Figure 11 and Figure 12).
Figure 11: In-Person Shopping in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014
62%
54%
59%
56%
57%
45%
53%
45%
59%
36%
44%
35%
36%
32%
40%
32%
43%
37%
6%
8%
12%
14%
15%
12%
2016 (n=304)
2014 (n=300)
2016 (n=300)
2014 (n=304)
2016 (n=301)
2014 (n=299)
2016 (n=304)
2014 (n=308)
2016 (n=304)
Fra
nce
The
Neth
erlands
Germ
any
Italy
Sp
ain
Q. Do you think most of the stores where you shop in person use security systems that are able to protect your card/account information when you
shop?
Yes No Don't use a card to paywhen shopping in person
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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16
Figure 12: In-Person Shopping in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014
The Asia-Pacific region tracks quite closely with the EMEA region in confidence. Indonesia and
Thailand show the lowest rates of card usage for in-store purchases. This could be due to a
number of factors, including high rates of mobile wallet use (Figure 5), lower payment card
acceptance, and preference for cash in more rural areas (Figure 13).
73%
68%
64%
67%
65%
52%
58%
55%
57%
22%
29%
34%
30%
30%
46%
39%
44%
32%
5%
5%
11%
2016 (n=300)
2014 (n=310)
2016 (n=302)
2014 (n=301)
2016 (n=300)
2014 (n=318)
2016 (n=303)
2014 (n=314)
2016 (n=303
U.K
.S
weden
UA
ES
outh
Afr
ica
Hungary
Q. Do you think most of the stores where you shop in person use security systems that are able to protect your card/account information when you
shop?
Yes No Don't use a card to paywhen shopping in person
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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17
Figure 13: In-Person Shopping in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014
ONLINE SHOPPING
Online shopping, and increasingly mobile online shopping, continues to be a critical channel for
commerce. Consumer confidence in online merchants hinges on both security and convenience,
which also help to gain repeat customers and minimize cart abandonment and chargebacks.
In the Americas, over half of all respondents believe sites at which they shop have security
systems to protect their information, but the range was rather wide. In the U.S., 81% of
respondents believe security measures are in place, while only 57% in Mexico respond the same
way. This could be due to a longer tradition of online shopping in the U.S. and the marketing of
security measures (Figure 14).
70%
62%
65%
65%
60%
55%
56%
49%
55%
49%
59%
22%
30%
34%
32%
35%
41%
31%
41%
43%
47%
28%
8%
8%
5%
13%
9%
13%
2016 (n=300)
2014 (n=310)
2016 (n=301)
2014 (n=310)
2016 (n=300)
2014 (n=310)
2016 (n=305)
2014 (n=330)
2016 (n=303)
2014 (n=311)
2016 (n=310)
India
New
Ze
ala
nd
Au
str
alia
Indonesia
Sin
ga
pore
Thaila
nd
Q. Do you think most of the stores where you shop in person use security systems that are able to protect your card/account information when you
shop?
Yes No Don't use a card to paywhen shopping in person
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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18
Figure 14: Online Merchant Security in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
EMEA shows more variation in both confidence and overall use of online shopping. Eurozone
countries showed little variation across the five countries surveyed and are statistically the same.
This is most likely due to harmonization of consumer protection and privacy laws and regulations
across the EU. Outside of the eurozone countries, there was far more variation, with the U.K.
providing responses similar to the U.S. and Sweden responding similarly to the eurozone
countries surveyed.
Respondents in South Africa and Hungary report the lowest rates of online shopping, with 15%
and 16%, respectively, reporting they do not shop online. This could represent less maturity in
the online shopping market in these countries and, anecdotally, less confidence in online
shopping (Figure 15 and Figure 16).
81%69% 67%
57%
18%
23% 31%
35%
8% 8%
U.S. (n=300) Canada (n=303) Brazil (n=300) Mexico (n=303)
Q. Do you think most sites where you shop online use security systems that are able to protect your card/account information when you shop?
Don't shoponline
No
Yes
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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19
Figure 15: Online Merchant Security in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Figure 16: Online Merchant Security in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Respondents in the Asia-Pacific region showed significant variation. In India, 77% respond that
security systems are in place, and in Singapore, only 51% report the same. Consumer
perceptions in Singapore may be impacted by a large migrant worker population and generally
less online shopping compared to other regions. New Zealand and Australia, while 10
percentage points apart, track closely with the eurozone countries surveyed (Figure 17).
69% 67% 67% 66% 64%
23% 29% 23% 29% 30%
8% 4% 10% 5% 6%
Italy (n=304) France (n=304) The Netherlands(n=300)
Germany(n=301)
Spain (n=303)
Q. Do you think most sites where you shop online use security systems that are able to protect your card/account information when you shop?
Don't shoponline
No
Yes
79%66% 65%
57% 55%
19%
19%28%
27%41%
15%7%
16%4%
U.K. (n=300) South Africa(n=303)
Sweden (n=302) Hungary(n=303)
UAE (n=300)
Q. Do you think most sites where you shop online use security systems that are able to protect your card/account information when you shop?
Don't shoponline
No
Yes
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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20
Figure 17: Online Merchant Security in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
FRAUD AND DATA BREACHES
Consumers in the U.S. are far more forgiving toward merchants that cause them to experience
fraud or a data breach. The U.S. is the only country surveyed where less than half of consumers
would stop shopping at such a merchant. There was a very broad range of reactions to this query
across the Americas, with 86% of consumers in Brazil and 84% in Mexico saying they would stop
shopping with a merchant or retailer if they experienced fraud or a data breach associated with
the entity (Figure 18).
Figure 18: Stop Shopping in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
77% 75%65% 63%
57%51%
21% 21%28% 28%
31% 44%
4% 7% 9% 11%5%
India (n=300) New Zealand(n=301)
Australia(n=300)
Thailand(n=300)
Indonesia(n=305)
Singapore(n=303)
Q. Do you think most sites where you shop online use security systems that are able to protect your card/account information when you shop?
Don't shoponline
No
Yes
37%
54%
84%
86%
26%
12%
7%
7%
37%
34%
9%
6%
U.S. (n=300)
Canada (n=303)
Mexico (n=303)
Brazil (n=300)
Q. Would you stop shopping with a merchant/retailer if you experienced fraud or were involved in a data breach with the organization?
Yes No Not sure
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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21
The majority of consumers in EMEA state they would stop shopping at a merchant or retailer
that allowed fraud to occur or involved them in a data breach. These figures are very high,
ranging from 52% to 72%; if consumers actually did stop shopping when these events occurred,
merchants and retailers would have to invest in better data security and fraud prevention
solutions (Figure 19).
Figure 19: Stop Shopping in EMEA
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Last, consumers in the Asia-Pacific react in a similarly severe manner over the prospect of a
retailer or merchant allowing fraud to occur on their account or their data to be breached
(Figure 20).
56%
52%
53%
62%
65%
67%
70%
70%
72%
13%
15%
12%
17%
19%
11%
12%
12%
8%
31%
33%
35%
22%
16%
22%
19%
18%
20%
U.K. (n=300)
Germany (n=301)
Netherlands (n=300)
France (n=304)
UAE (n=300)
Italy (n=304)
Sweden (n=302)
South Africa(n=303)
Spain (n=303)
Q. Would you stop shopping with a merchant/retailer if you experienced fraud or were involved in a data breach with the organization?
Yes No Not sure
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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22
Figure 20: Stop Shopping in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Across all 20 countries, an average of 65% of consumers surveyed state that a fraud experience
or data breach would cause them to stop shopping with the merchant or retailer that enabled
that incident.
58%
62%
65%
73%
76%
10%
15%
18%
17%
13%
32%
23%
17%
10%
11%
New Zealand (n=301)
Australia (n=300)
Singapore(n=303)
India (n=300)
Indonesia(n=305)
Q. Would you stop shopping with a merchant/retailer if you experienced fraud or were involved in a data breach with the organization?
Yes No Not sure
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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23
STORED DATA
Storing and managing personal data has become more critical than ever before for every type of
firm. Data breaches and hacking attempts have become incredibly common. Making matters
worse, a breach or hack at one firm can impact other firms, especially as many people reuse
usernames and passwords.
Different countries have different sets of data security and privacy laws, regulations, and
industry standards for data protection. This can be very confusing for firms large and small, and
certainly for consumers who regularly see news of hacking and data breaches across mass media
on a regular basis.
Across all the countries surveyed, only three—the U.S., India, and Thailand—had over 50% of
respondents indicate that they trust businesses to protect their personal data, and by
statistically small margins. This reflects the reality that for many years, firms’ ability to protect
data has lagged behind criminals’ ability to collect and monetize the data.
In the Americas, respondents from the U.S. showed one of the highest levels of trust out of all
countries surveyed, with 54% responding that they trust firms to protect their data. This is
surprising considering the frequent news about breaches and hacks. With the exception of
respondents from Mexico, the number of respondents who report they are unsure of data
protections and those who report they do not trust firms’ data protection tend to be about the
same and total over half of the responses. Respondents from Mexico much more strongly
respond that they do not trust firms (Figure 21).
Figure 21: Security of Stored Data in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
54%47% 42% 41%
22%27%
26%39%
24% 27%32%
20%
U.S. (n=300) Brazil (n=300) Canada (n=303) Mexico (n=303)
Q. Do you trust firms (e.g., stores, online shopping sites, restaurants) to protect personal and financial data they have stored against hacking
attempts, data breaches, etc.?
Unsure
No
Yes
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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24
In EMEA, the respondents tend much more toward an “unsure” response when asked whether
they trust firms to protect their data. This is in some ways surprising, especially in the EU, where
there are more strict data privacy and security protections than in many parts of the world, in
particular the U.S. This is even more surprising in Germany, which has some of the strictest data
protection laws and regulations in the world.
In general, European consumers are much more aware and conscious of data protection and
privacy compared to their counterparts in other parts of the world, yet the number of
respondents who say they are unsure of firms’ ability to protect their data suggests there is a
lack of clarity and communication about how data is stored, managed, and protected. No
country in the EMEA region reports over 49% of respondents indicating they trust firms to
protect their data (Figure 22 and Figure 23).
Figure 22: Security of Stored Data in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
49% 49%42% 40%
30%
26%18%
24% 24%31%
24%33% 34% 36% 39%
Spain (n=303) The Netherlands (n=300)
France (n=304) Italy (n=304) Germany(n=301)
Q. Do you trust firms (e.g., stores, online shopping sites, restaurants) to protect personal and financial data they have stored against hacking
attempts, data breaches, etc.?
Unsure
No
Yes
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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25
Figure 23: Security of Stored Data in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Similar to their responses about how well online merchants protect information, respondents
show significant variation in the Asia-Pacific region, with 60% of those in India responding they
trust firms with data, and only 36% in Singapore saying the same. In general, the perception of
firms’ data security tracked very closely with the perception of merchant security capabilities.
A large minority of respondents across the region report they are unsure whether they trust
firms to protect their data. Singapore is a surprising outlier, considering its strong regulations
regarding data protection and governance. In general, consumers in Singapore do much less
online shopping than do those in many other geographies due to the relatively small size of the
country and the ease of access to brick-and-mortar stores (Figure 24).
49% 46% 42% 37% 34%
19% 23% 32%29% 32%
33% 31% 26%34% 34%
U.K. (n=300) Hungary(n=303)
UAE (n=300) Sweden (n=302) South Africa(n=303)
Q. Do you trust firms (e.g., stores, online shopping sites, restaurants) to protect personal and financial data they have stored against hacking
attempts, data breaches, etc.?
Unsure
No
Yes
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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26
Figure 24: Security of Stored Data in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Even though data breaches have been common, consumer confidence in merchants’ ability to
protect personal information increased to 43% in 2016 from 34% in 2014, among the 17
countries surveyed in both studies.
60%51% 47% 42% 40% 36%
18%
20% 23%21%
33%33%
23%29% 30%
37%27% 31%
India(n=300)
Thailand(n=300)
Indonesia(n=305)
New Zealand(n=301)
Australia(n=300)
Singapore(n=303)
Q. Do you trust firms (e.g., stores, online shopping sites, restaurants) to protect personal and financial data they have stored against hacking
attempts, data breaches, etc.?
Unsure
No
Yes
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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27
PROTECTING CARD AND ACCOUNT INFORMATION
When asked about what types of organizations best protect consumer information from fraud,
respondents in Mexico and Brazil have higher levels of confidence in large financial institutions—
65% and 57%, respectively—than in other types of institutions. In the U.S., there is a nearly even
split between large financial institutions and community banks and credit unions, at 39% and
34%, respectively. This may be due to much more national news coverage when an incident
occurs with a large financial institution compared to more local coverage when it comes to
community banks and credit unions (Figure 25).
Figure 25: Best Data Protectors in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
There is variation in perception across EMEA as to which organizations best protect customer
information. In the eurozone nations surveyed, large multinational financial institutions and
governments ranked the highest, most likely due to generally strong data protection laws and
regulations. Non-eurozone countries surveyed showed much greater variance, with 59% of
respondents in South Africa viewing large multinational financial institutions as the most
reliable, whereas only 19% in Sweden felt the same. In Germany, perception was nearly evenly
split between multinational financial institutions, the government, and community banks and
credit unions.
Large chain stores outside of the eurozone generally showed stronger consumer confidence than
much of the rest of the world, with the notable exception of South Africa. The UAE distinctly
stands out with strong positive perceptions of large chain retailers (Figure 26 and Figure 27).
65%
57%
51%
39%
8%
14%
19%
34%
11%
16%
10%
9%
10%
10%
17%
8%
7%
10%
Mexico (n=303)
Brazil (n=300)
Canada (n=303)
U.S. (n=300)
Q. In your opinion, which of the following does the best job of protecting your card(s) or account information from fraud?
Large/multinationalfinancialinstitutions
Communitybanksor credit unions
Large chainstores
Governmentalbodies and/or lawenforcement
Small retailers/storesor smallrestaurants
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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28
Figure 26: Best Data Protectors in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Figure 27: Best Data Protectors in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
In the Asia-Pacific region, there are more differences between countries than in some other
geographies. Large multinational financial institutions and, in some cases—notably Singapore—
governments are highly trusted when it comes to data protection. In Singapore, the
government’s efforts for strong data protection policies appear to have a real impact on
consumer perception. In other countries in the region, large financial institutions appear to be
generally well-trusted, likely due to strong brand image and efforts to promote consumer
confidence (Figure 28).
47%
46%
41%
41%
27%
17%
14%
20%
11%
27%
9%
14%
6%
7%
12%
22%
19%
26%
33%
24%
5%
7%
7%
9%
11%
France (n=304)
Italy (n=304)
The Netherlands (n=300)
Spain (n=303)
Germany (n=301)
Q. In your opinion, which of the following does the best job of protecting your card(s) or account information from fraud?
Large/multinationalfinancialinstitutions
Communitybanksor credit unions
Large chainstores
Governmentalbodies and/or lawenforcement
Small retailers/storesor smallrestaurants
59%
48%
40%
25%
19%
17%
13%
19%
14%
34%
24%
22%
41%
27%
9%
5%
5%
7%
11%
10%
15%
15%
13%
South Africa(n=303)
U.K. (n=300)
Hungary (n=303)
UAE (n=300)
Sweden (n=302)
Q. In your opinion, which of the following does the best job of protecting your card(s) or account information from fraud?
Large/multinationalfinancialinstitutions
Communitybanksor credit unions
Large chainstores
Governmentalbodies and/or lawenforcement
Small retailers/storesor smallrestaurants
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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29
Figure 28: Best Data Protectors in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
54%
45%
44%
42%
36%
36%
10%
20%
6%
15%
10%
14%
6%
8%
8%
12%
30%
24%
36%
27%
46%
32%
5%
5%
7%
6%
Indonesia (n=305)
Australia (n=300)
Thailand (n=300)
New Zealand (n=301)
Singapore (n=303)
India (n=300)
Q. In your opinion, which of the following does the best job of protecting your card(s) or account information from fraud?
Large/multinationalfinancialinstitutions
Communitybanksor credit unions
Large chainstores
Governmentalbodies and/or lawenforcement
Small retailers/storesor smallrestaurants
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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30
CONSUMER FRAUD CONCERNS
Consumers clearly have an interest in security and have concerns about how merchants and
other organizations they interact with protect their data and protect them from fraud.
Combating fraud and improving security require a partnership between businesses and
consumers to succeed. Across the range of countries surveyed, the standout fraud concern is
theft by computer hacking. This reflects the concerns consumers have about how their data is
protected by merchants.
Conversely, across all regions, very few are concerned about shopping or paying bills using their
phones or tablets. This may be attributed to a few possible factors:
Many consumers view their mobile devices and tablets as very different from
laptops and desktops. While they are certainly different, they are all computers in
different form factors, and they all have potential vulnerabilities. This misperception
may lead consumers to be less concerned with security when it comes to mobile
devices. It is important to remember that NASA sent men to the moon with a
fraction of the computing power now available in a watch.
Consumers may not have experienced fraud through their mobile phones and
tablets yet. One single Android exploit, Stagefright, was detected on as many as
1,800 devices per day in late 2015.7 While the amount of mobile malware is
growing, many consumers may not have experienced it yet or may not have been
able to connect a mobile event to an actual fraud.
The concept of “computer hacking” is not particularly well-defined in consumers’
minds and may be perceived as more focused on businesses and governments than
on personal devices.
Though most of the regions’ respondents show similar patterns, there are some interesting
differences between some countries.
In the Americas, filling out paper forms requiring account information is a similar concern across
all countries surveyed, reflecting a worry that such paper forms might be used for fraudulent
purposes due to poor care exercised by the custodians of those documents.
It also seems that across the Americas region, consumers underestimate, or underreport, the
risk of theft by a trusted party (Figure 29).
7. Bruce Snell, “Mobile Threat Report: What’s on the Horizon for 2016,” Intel Security and McAfee,
published March 1, 2016, accessed September 18, 2016, http://www.mcafee.com/us/resources/reports/rp-mobile-threat-report-2016.pdf.
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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31
Figure 29: Greatest Fraud Risks in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Patterns in the EMEA region broadly reflect the rest of the world, again with some interesting
differences. Germany offers an interesting example in which 45% of consumers report theft by
computer hacker as the greatest risk, higher than every other country surveyed in the region.
The low level of concern regarding in-store shopping does not necessarily reflect consumers’
attitudes toward the ability of merchants to protect consumer data.
Another standout is greater concern from consumers in Hungary, France, and Italy regarding
personal data available on paper forms. Much like in the Americas, this could be attributed to
general distrust in the custodianship of those forms as well as consumers’ perception of such
information’s usefulness in perpetrating fraud. On this metric, Germany was one of the lowest in
fraud concern (Figure 30 and Figure 31).
32%
12%
14%
10%
15%
10%
5%
2%
29%
14%
16%
8%
8%
10%
8%
7%
21%
18%
16%
12%
9%
8%
9%
7%
32%
20%
14%
14%
10%
3%
5%
2%
Theft by computer hacker
Filling out paper forms thatrequire card or account
numbers for payments orpurchases
Shopping online
Using my card information forpurchases via the telephone
Theft by a trusted party (e.g.,relative, wait staff, bank
employee)
Using my credit card onvacation while travelling away
from home
Using my phone or tablet toshop and pay bills
Shopping in a store
Q. Which of the following do you believe presents the greatest fraud risk?
U.S. (n=300)
Canada (n=303)
Mexico (n=303)
Brazil (n=300)
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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32
Figure 30: Greatest Fraud Risks in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
45%
6%
11%
7%
15%
10%
6%
1%
38%
11%
12%
13%
11%
7%
5%
3%
32%
18%
19%
11%
6%
7%
3%
2%
29%
22%
20%
10%
6%
7%
4%
3%
27%
24%
15%
16%
4%
5%
5%
4%
Theft by computer hacker
Filling out paper forms thatrequire card or account
numbers for payments orpurchases
Shopping online
Using my card information forpurchases via the telephone
Using my credit card onvacation while travelling away
from home
Using my phone or tablet toshop and pay bills
Theft by a trusted party (e.g.,relative, wait staff, bank
employee)
Shopping in a store
Q. Which of the following do you believe presents the greatest fraud risk?
Germany (n=301)
The Netherlands (n=300)
Spain (n=303)
France (n=304)
Italy (n=304)
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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33
Figure 31: Greatest Fraud Risks in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
As with the other regions, the general top concern in the Asia-Pacific region is theft by computer
hacking. Like other regions, there are some interesting cases. Concern about credit card use
while traveling is statistically higher among respondents from Australia and Singapore than
among those in Thailand and Indonesia, and is similar to the other countries in the region as well
as to respondents in the U.K., Germany, and the U.S.
Similar to the EMEA region, the generally low concern regarding in-store purchases does not
appear to reflect the modest level of confidence consumers report in merchants’ ability to
protect their data. This can also be reflective of consumers’ broader view of “computer hacking,”
which covers a broad range of events that may or may not include in-store data breaches due to
hacking (Figure 32).
35%
10%
12%
9%
15%
6%
8%
5%
35%
22%
17%
11%
4%
5%
5%
2%
32%
14%
19%
11%
7%
5%
8%
4%
24%
15%
16%
10%
14%
9%
7%
6%
23%
17%
15%
19%
3%
14%
5%
4%
Theft by computer hacker
Filling out paper forms thatrequire card or account
numbers for payments orpurchases
Shopping online
Using my card information forpurchases via the telephone
Using my credit card onvacation while travelling away
from home
Theft by a trusted party (e.g.,relative, wait staff, bank
employee)
Using my phone or tablet toshop and pay bills
Shopping in a store
Q. Which of the following do you believe presents the greatest fraud risk?
U.K. (n=300)
Hungary (n=303)
UAE (n=300)
Sweden (n=302)
South Africa (n=303)
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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34
Figure 32: Greatest Fraud Risks in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
37%
17%
15%
8%
13%
3%
5%
2%
33%
15%
10%
13%
11%
7%
6%
5%
31%
18%
12%
13%
12%
5%
5%
3%
29%
17%
13%
10%
6%
16%
6%
3%
28%
19%
14%
14%
10%
10%
5%
1%
28%
14%
13%
11%
9%
16%
7%
2%
Theft by computer hacker
Shopping online
Filling out paper forms thatrequire card or account
numbers for payments orpurchases
Using my card information forpurchases via the telephone
Theft by a trusted party (e.g.,relative, wait staff, bank
employee)
Using my credit card onvacation while travelling away
from home
Using my phone or tablet toshop and pay bills
Shopping in a store
Q. Which of the following do you believe presents the greatest fraud risk?
Indonesia (n=305)
India (n=300)
Thailand (n=300)
Australia (n=300)
New Zealand (n=301)
Singapore (n=303)
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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35
FRAUD EDUCATION
Consumer education on fraud awareness varies significantly across and within regions. Mexico
and Brazil show an improved recognition of anti-fraud education by financial institutions than in
earlier years; in the U.S. and Canada, levels are similar to prior years. It is concerning that in
2016 in every country in the Americas surveyed, over one-third of consumers could not recall
anti-fraud guidance coming from their financial institutions.
How well consumers are educated about fraud clearly correlates with how likely they are to
become victims of fraud.8 Mexico shows the greatest improvements in fraud education, while
Canada has shown consistently low numbers going back to 2012. This region has an opportunity
to improve customer messaging and communication with respect to avoiding fraud (Figure 33).
Figure 33: Fraud Education in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
8. See Aite Group’s report 2016 Global Consumer Card Fraud: Where Card Fraud Is Coming From, July
2016.
33%
21%
14%
23%
18%
19%
25%
14%
15%
13%
13%
14%
12%
7%
6%
22%
21%
22%
13%
11%
15%
14%
10%
13%
14%
13%
14%
11%
11%
13%
21%
19%
25%
13%
19%
17%
39%
55%
65%
38%
44%
43%
37%
52%
42%
55%
54%
52%
6%
5%
6%
2016 (n=303)
2014 (n=307)
2012 (n=302)
2016 (n=300)
2014 (n=311)
2012 (n=312)
2016 (n=300)
2014 (n=300)
2012 (n=306)
2016 (n=303)
2014 (n=304)
2012 (n=304)
Me
xic
oU
.S.
Bra
zil
Canada
Q. Has your financial institution provided any guidance or tips for anti-fraud?
Yes, I've receivede-mail from themwith anti-fraud information
Yes, I've receivedmail from themwith anti-fraudinformation
Yes, I've seenthis on myfinancial institution'swebsite
Don't recallreceiving anyanti-fraudinformationfrom my financialinstitution
Notapplicable
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36
In EMEA nations, there is somewhat less year-over-year fluctuation compared to the Americas,
but still at least one-third of consumers report they don’t recall receiving any anti-fraud
education or messaging. This results in a higher risk of fraud for a large group of consumers.
Financial institutions can help improve their image by communicating clearly how they work to
protect consumers from fraud without giving up so much information that criminals can use it to
their advantage. This can improve customer trust and confidence while helping to reduce fraud
losses (Figure 34).
Figure 34: Fraud Education in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Non-eurozone parts of EMEA show more variety in customer perception, with countries such as
South Africa and the UAE showing much higher levels of consumer education—almost three-
quarters of respondents report that they have received guidance from financial institutions. This
compares to Sweden and Hungary, where less than 50% of respondents recall anti-fraud
24%
16%
17%
24%
17%
14%
16%
12%
12%
16%
15%
11%
15%
9%
10%
14%
8%
10%
13%
10%
11%
12%
10%
12%
20%
11%
25%
30%
30%
19%
19%
16%
20%
23%
19%
15%
19%
19%
10%
32%
36%
31%
42%
49%
54%
46%
47%
53%
42%
42%
39%
62%
10%
9%
8%
7%
5%
7%
7%
5%
18%
13%
11%
2016 (n=300)
2014 (n=304)
2012 (n=303)
2016 (n=304)
2014 (n=308)
2012 (n=302)
2016 (n=304)
2014 (n=300)
2012 (n=301)
2016 (n=301)
2014 (n=299)
2012 (n=300)
2016 (n=303)
Th
e N
eth
erlan
ds
Italy
Fra
nce
Germ
any
Sp
ain
Q. Has your financial institution provided any guidance or tips for anti-fraud?
Yes, I've receivede-mail from themwith anti-fraud information
Yes, I've receivedmail from themwith anti-fraudinformation
Yes, I've seenthis on myfinancial institution'swebsite
Don't recallreceiving anyanti-fraudinformationfrom my financialinstitution
Notapplicable
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37
information. The U.K. tracks much more closely with the U.S. and eurozone countries, but still
just over 50% of respondents recall anti-fraud messaging (Figure 35).
Figure 35: Fraud Education in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014, and in 17 countries, Q3 2012
Respondents in the Asia-Pacific region had a rather wide range of responses, with respondents in
India, Indonesia, and Thailand reporting high levels of anti-fraud messaging compared to many
other countries surveyed. Singapore, Australia, and New Zealand showed much lower levels of
awareness of anti-fraud messages, with less than 50% of respondents in each country reporting
they have seen some sort of anti-fraud education for 2016. Even though many institutions have
51%
42%
43%
38%
49%
47%
25%
19%
18%
9%
9%
6%
15%
8%
9%
7%
21%
14%
10%
14%
19%
20%
8%
6%
6%
12%
18%
24%
30%
10%
14%
19%
15%
17%
21%
22%
22%
40%
17%
21%
24%
19%
24%
21%
23%
41%
41%
38%
51%
57%
43%
51%
7%
5%
10%
6%
5%
2016 (n=303)
2014 (n=314)
2012 (n=303)
2016 (n=300)
2014 (n=318)
2012 (n=315)
2016 (n=300)
2014 (n=310)
2012 (n=312)
2016 (n=302)
2014 (n=301)
2012 (n=306)
2016 (n=303)
So
uth
Afr
ica
UA
EU
.K.
Sw
eden
Hungary
Q. Has your financial institution provided any guidance or tips for anti-fraud?
Yes, I've receivede-mail from themwith anti-fraud information
Yes, I've receivedmail from themwith anti-fraudinformation
Yes, I've seenthis on myfinancialinstitution'swebsite
Don't recallreceiving anyanti-fraudinformation from myfinancial institution
Notapplicable
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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38
some form of anti-fraud education and training, it does not always seem to resonate with
consumers (Figure 36).
Figure 36: Fraud Education in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016 and Q1 2014, and in 17 countries, Q3 2012
55%
53%
52%
34%
29%
22%
20%
20%
23%
18%
18%
14%
14%
12%
37%
19%
14%
11%
14%
13%
16%
14%
17%
18%
17%
24%
29%
11%
12%
12%
11%
15%
13%
21%
18%
19%
16%
13%
16%
14%
15%
17%
17%
21%
20%
13%
14%
18%
26%
37%
36%
45%
46%
39%
46%
41%
39%
53%
55%
24%
5%
7%
5%
7%
6%
5%
5%
5%
7%
2016 (n=300)
2014 (n=310)
2012 (n=312)
2016 (n=305)
2014 (n=330)
2012 (n=305)
2016 (n=303)
2014 (n=311)
2012 (n=306)
2016 (n=300)
2014 (n=310)
2012 (n=315)
2016 (n=301)
2014 (n=310)
2016 (n=300)
India
Indonesia
Sin
ga
pore
Au
str
alia
New
Zeala
nd
Thaila
nd
Q. Has your financial institution provided any guidance or tips for anti-fraud?
Yes, I've receivede-mail from themwith anti-fraud information
Yes, I've receivedmail from themwith anti-fraudinformation
Yes, I've seenthis on myfinancial institution'swebsite
Don't recallreceiving anyanti-fraudinformationfrom my financialinstitution
Notapplicable
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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39
CONSUMER RESPONSE TO FRAUD ALERTS
Consumers are an integral piece of the fraud management puzzle. Whether they are reporting
fraud or responding to alerts, consumers are critical to the process. The way in which financial
institutions manage a consumer’s fraud experience can have a significant impact on future
decisions for those consumers. Meeting consumer expectations enables financial institutions to
develop stronger relationships with customers and improve revenue.
In the Americas, the majority of consumers report they would prefer institutions to block
transactions until they respond to the alert. In the U.S. and Canada, more consumers report they
would prefer more granularity by allowing common transactions to be approved based on past
purchase history, with 29% of Canadian consumers and 35% of U.S. consumers preferring this
option. This is much higher than numbers reported in Brazil and Mexico, possibly due to lower
awareness that this option is even possible.
Tellingly, very few consumers in any of the geographies surveyed indicate they would like all
transactions to be approved after an alert. This suggests that consumers have a good
understanding of the impacts of card fraud and the need to work through some inconvenience
to reduce fraud (Figure 37).
Figure 37: Actions Following Suspicious Activity in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Results in EMEA were generally quite similar to those for the Americas, with the majority of
consumers in all countries preferring that banks block transactions until they respond to the
alerts. Some consumers have a preference for allowing “common” historical transactions to be
allowed while blocking other transactions, with responses ranging from 15% to 32% of
consumers preferring this option. Only a small fraction of respondents, 3% to 9%, indicate they
would prefer all transactions to be approved (Figure 38 and Figure 39).
6% 29%
35%
17%
11%
65%
61%
81%
86%
Canada (n=303)
U.S. (n=300)
Mexico (n=303)
Brazil (n=300)
Q. If you were to receive an alert or notification about fraud activity from your financial institution, what action would you prefer?
Bank allows allactivity unlessI notify themotherwise
Bank continuesto allow transactionsconsistent with mypast history fromplaces where I haveused the accountin the past
Bank does not allowany transactionsuntil I respondto alert
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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40
Figure 38: Actions Following Suspicious Activity in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Figure 39: Actions Following Suspicious Activity in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Countries surveyed in the Asia-Pacific region show some variation between countries similar to
that of EMEA or the Americas. A strong majority of consumers prefer transactions be blocked
until they respond to the bank. Indonesian respondents stand out, with the largest number of
respondents preferring all activity be approved unless they notify the bank (Figure 40).
7%
7%
6%
30%
26%
31%
17%
17%
63%
67%
63%
80%
80%
Germany (n=301)
The Netherlands(n=300)
France (n=304)
Italy (n=304)
Spain (n=303)
Q. If you were to receive an alert or notification about fraud activity from your financial institution, what action would you prefer?
Bank allows allactivity unlessI notify themotherwise
Bank continuesto allow transactionsconsistent with mypast history fromplaces where I haveused the accountin the past
Bank does not allowany transactionsuntil I respondto alert
9%
7%
5%
4%
4%
19%
15%
22%
32%
26%
71%
79%
73%
64%
71%
UAE (n=300)
South Africa(n=303)
Sweden (n=302)
U.K. (n=300)
Hungary (n=303)
Q. If you were to receive an alert or notification about fraud activity from your financial institution, what action would you prefer?
Bank allows allactivity unlessI notify themotherwise
Bank continuesto allow transactionsconsistent with mypast history fromplaces where I haveused the accountin the past
Bank does not allowany transactionsuntil I respondto alert
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
© 2017 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited. 101 Arch Street, Suite 501, Boston, MA 02110 • Tel +1.617.338.6050 • Fax +1.617.338.6078 • [email protected] • www.aitegroup.com
41
Figure 40: Actions Following Suspicious Activity in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Clearly, consumers are willing to be involved in preventing fraud, and institutions have a variety
of methods to reach customers—some are more preferred than others. In general, consumers
across all geographies prefer phone calls, with electronic options such as email and SMS
following close behind. In almost every country surveyed, a significant minority of respondents
include a physical letter as one of their preferred methods of contact.
The survey did not include a separate option for mobile application push alerts. This has become
another convenient electronic option to both notify consumers and allow them to approve or
reject transactions. Other newer communication methods, such as WeChat, were also not
included.
Approximately half of respondents in Mexico, Canada, and Brazil report they would prefer to be
contacted on a landline, and one-third in the U.S. report this as a preference. This may be
reflective of the large number of U.S. consumers that have abandoned landline phones at home
(Figure 41).
14%
11%
10%
5%
5%
14%
18%
19%
33%
20%
30%
71%
72%
71%
62%
75%
68%
Indonesia (n=305)
India (n=300)
Thailand (n=300)
Australia (n=300)
Singapore (n=303)
New Zealand(n=301)
Q. If you were to receive an alert or notification about fraud activity from your financial institution, what action would you prefer?
Bank allows allactivity unlessI notify themotherwise
Bank continuesto allow transactionsconsistent with mypast history fromplaces where I haveused the accountin the past
Bank does not allowany transactionsuntil I respondto alert
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
© 2017 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited. 101 Arch Street, Suite 501, Boston, MA 02110 • Tel +1.617.338.6050 • Fax +1.617.338.6078 • [email protected] • www.aitegroup.com
42
Figure 41: Contact Preferences in the Americas
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Preferences in EMEA similarly skewed strongly toward calls to a mobile phone, followed by SMS
and email alerts. Much like the Americas, between one-third and one-half of respondents show
a preference for a phone call to a landline. Even so, it is clear that mobile-based communication
is generally the strong preference across EMEA.
In several geographies within EMEA, respondents also expressed a desire for a physical letter.
This does not imply that a letter would be the only form of communication, but it appears to be
one of the forms of communication consumers appreciate (Figure 42 and Figure 43).
82%
68%
58%
60%
15%
2%
72%
64%
55%
49%
16%
1%
59%
59%
59%
34%
17%
3%
52%
34%
45%
48%
17%
5%
Phone call to cell/mobile phone
Send a text message (SMS)
Send an email
Phone call on a landline or phone that is not acell/mobile phone at home
Send a letter
None—if the bank notices anything unusual I would rather they declined my card immediately
Q. If your bank noticed unusual activity on your bank account or card, and you could be notified prior to the bank taking action, what action are
you very interested in your bank taking?
Mexico (n=298)
Brazil (n=296)
U.S. (n=291)
Canada (n=287)
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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43
Figure 42: Contact Preferences in Eurozone
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
78%
65%
53%
45%
17%
5%
69%
67%
54%
43%
17%
2%
68%
68%
51%
36%
15%
1%
50%
41%
49%
34%
28%
4%
48%
39%
47%
39%
24%
2%
Phone call to cell/mobile phone
Send a text message (SMS)
Send an email
Phone call on a landline or phone that is not acell/mobile phone at home
Send a letter
None—if the bank notices anything unusual I would rather they declined my card immediately
Q. If your bank noticed unusual activity on your bank account or card, and you could be notified prior to the bank taking action, what action are
you very interested in your bank taking?
Spain (n=288)
France (n=298)
Italy (n=300)
The Netherlands(n=287)
Germany (n=294)
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44
Figure 43: Contact Preferences in EMEA (Non-Eurozone)
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Similar to the other regions, mobile-based communications, either SMS or calls to a mobile
phone, were the most preferred in the Asia-Pacific region, with email coming in third. Much like
EMEA, about one-third to one-half of respondents showed a preference for a landline phone call
(Figure 44).
79%
82%
59%
39%
13%
6%
79%
74%
65%
43%
41%
5%
65%
72%
53%
53%
31%
3%
57%
53%
49%
28%
25%
9%
55%
52%
46%
42%
21%
4%
Send a text message (SMS)
Phone call to cell/mobile phone
Send an email
Phone call on a landline or phone that is not acell/mobile phone at home
Send a letter
None—if the bank notices anything unusual I would rather they declined my card immediately
Q. If your bank noticed unusual activity on your bank account or card, and you could be notified prior to the bank taking action, what action are
you very interested in your bank taking?
South Africa(n=284)Hungary (n=288)
UAE (n=290)
Sweden (n=276)
U.K. (n=288)
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
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45
Figure 44: Contact Preferences in the Asia-Pacific
Source: Aite Group, ACI Worldwide study of consumers in 20 countries, Q2 2016
Most consumers rarely leave home without their mobile devices, and consumers love the
convenience of using them. Indeed, across all 20 countries surveyed, 75% of consumers indicate
they are very interested in receiving a call to their mobile device or having an SMS message sent
to their mobile device to partner with their financial institutions in preventing fraud.
73%
63%
60%
43%
25%
1%
64%
61%
56%
48%
30%
2%
62%
52%
51%
45%
14%
6%
61%
61%
49%
37%
15%
6%
60%
71%
48%
37%
19%
2%
59%
61%
44%
31%
21%
3%
Phone call to cell/mobile phone
Send a text message (SMS)
Send an email
Phone call on a landline or phone that isnot a cell/mobile phone at home
Send a letter
None—if the bank notices anything unusual I would rather they declined my
card immediately
Q. If your bank noticed unusual activity on your bank account or card, and you could be notified prior to the bank taking action, what action are
you very interested in your bank taking?
Indonesia (n=302)
India (n=293)
New Zealand (n=283)
Australia (n=282)
Singapore (n=296)
Thailand (n=291)
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
© 2017 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited. 101 Arch Street, Suite 501, Boston, MA 02110 • Tel +1.617.338.6050 • Fax +1.617.338.6078 • [email protected] • www.aitegroup.com
46
CONCLUSION
Consumers share a number of concerns about how their personal information is protected and
how businesses value data security and privacy. Consumers also show an interest in minimizing
fraud and protecting their information, but they often lack the understanding and tools to do so.
Financial institutions and retailers should continue to educate consumers on ways to
protect their personal information and ways the firm protects the customers’
information. This can enhance brand reputation and customer loyalty.
Online merchants, in particular, can highlight security measures in place, such as
Verified by Visa and Mastercard SecureCode, to feature security measures—even
though there are many less-visible security measures also in place.
Firms should include clear communication in FAQs and disclosures about the
protections the organization has in place to protect consumer data. These
protections should be in line with regulatory requirements and, when appropriate,
should exceed such requirements.
Consumers clearly view mobile-based communication, whether voice or SMS, as
their preferred means of fraud notification. Organizations should pursue a range of
mobile-based alert and communication options based on local preferences (i.e.,
voice, SMS, app push, and even others such as WhatsApp).
Consumers are particularly concerned with fraud perpetrated through computer
hacking. Firms can help alleviate these concerns through education and, in some
cases, by offering tools such as anti-virus and anti-malware software to help mitigate
these risks.
There is variability within geographies, which is often attributable to factors such as consumer
buying habits, access to technology, prevalence of various payments products, and sociocultural
norms. Some of these factors are in flux with changing technologies and demographics but
highlight the fact that there is no “one size fits all” approach to engaging consumers in fraud
management and securing their trust in and continued business with an organization.
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
© 2017 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited. 101 Arch Street, Suite 501, Boston, MA 02110 • Tel +1.617.338.6050 • Fax +1.617.338.6078 • [email protected] • www.aitegroup.com
47
RELATED AITE GROUP RESEARCH
Global Security Engagement Scorecard™, November 2016.
Digital Wallets: Provider Strategies to Meet Customer Requirements, September 2016.
2016 Global Consumer Card Fraud: Where Card Fraud Is Coming From, July 2016.
Digital-Channel Fraud Mitigation: The Mobile Force Awakens, June 2015.
Mobile Proximity Payments: A Disruption in the Force, May 2015.
Global Consumer Survey: Consumer Trust and Security Perceptions FEBRUARY 2017
© 2017 Aite Group LLC. All rights reserved. Reproduction of this report by any means is strictly prohibited. 101 Arch Street, Suite 501, Boston, MA 02110 • Tel +1.617.338.6050 • Fax +1.617.338.6078 • [email protected] • www.aitegroup.com
48
ABOUT AITE GROUP
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business, technology, and regulatory issues and their impact on the financial services industry.
With expertise in banking, payments, insurance, wealth management, and the capital markets,
we guide financial institutions, technology providers, and consulting firms worldwide. We
partner with our clients, revealing their blind spots and delivering insights to make their
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AUTHOR INFORMATION
Shirley Inscoe
+1.617.398.5050
Research Design and Data:
Judy Fishman
+1.617.338.6067
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