adv

HK scores low on APAC Digital Trust Index

HK scores low on APAC Digital Trust IndexHong Kong ranks seventh out of 10 Asia-Pacific nations in terms of digital trust among consumers in their service providers, research from credit reporting and business services company Experian indicates. In addition, such trust is in short supply across the region.

Hong Kong scored a 2.5 on the company's Digital Trust Index, placing it ahead of Thailand (2.3), Singapore (2.3) and Indonesia (1.8), but behind China (2.8) and index leader New Zealand (4.2).

The index was developed to attempt to provide a meaningful way to measure trust between consumers and organizations. It is a rank out of 10 based on the four key criteria of digital adoption, industry preferences, fraud rates, and the effectiveness of companies' fraud management capabilities.

Asia-Pacific as a whole only scored a 3.2 out of 10, demonstrating low levels of trust in the majority of service providers.

One in five people in Asia-Paicic have encountered fraud directly, and if loved ones are included this increases to one in three. These numbers are only expected to rise in the future, Experian said, further negatively impacting consumer trust.

"Trust is an essential currency for today's digital world and is becoming ever more essential as digitalization accelerates and changes the way we work, live and play. As governments across the region lay down plans to increase digitization and enhance their economic outlooks through adopting new digital services, it is imperative that organizations invest to ensure trust in their digital offerings," Experian APAC CEO Ben Elliott said.

"The relatively low Digital Trust Index score of 3.2 out of 10 across the region indicates that there is a divide between how businesses think they manage fraudulent digital transactions and the actual customer experience when fraud does occur."

The research has indicated three key gaps that service providers need to address to strengthen consumer trust. These include utilizing automation to combat the expected increase in fraud that comes with the ongoing rise of digital transactions.

Second, service providers need to balance the ability to provide a better and more seamless customer experience with improving their ability to detect and manage fraud.

Finally, service providers must future proof their fraud detection capabilities in response to the constantly evolving and diversifying fraud environment.

"Ultimately, while digitalization is set to usher us into a new era of convenience, more must be done to build greater customer trust in the digital world -- lest all our efforts come to nought. The next-generation fraud prevention is made possible today by technological advances in big data and analytics,” IDC APAC practice group vice president Sandra Ng said.

 

Image from iStockphoto