A recent study reveals that UK banks are failing to keep pace with global counterparts in implementing advanced security measures, putting consumers at risk of fraud. The research shows that one-third of British banks and fintech firms acknowledge they are seriously lagging in fraud checks, while 84 percent express concerns about customer identification.
Mick Hegarty, Managing Director at GBG, emphasizes the disparity, stating that while consumers expect technology to streamline identification processes, UK banks still require physical visits to branches for identity document submissions. Hegarty urges financial institutions to match the standards set by global giants like Amazon, Apple, and Facebook, which have significantly elevated customer expectations.
Despite the UK’s reputation in artificial intelligence, the study indicates limited adoption of advanced technologies such as facial recognition and automated data capture. The UK financial sector lags behind countries like China, Singapore, the US, and Australia, particularly in customer identity management.
Major regulatory changes, including Open Banking and GDPR, coupled with ongoing Brexit negotiations, contribute to the sector’s slow adoption of cutting-edge security technologies. Simultaneously, rising customer expectations driven by digital empowerment and experiences from tech giants underscore the urgency for UK financial service firms to reassess their approach to new technologies.
To bridge the gap and enhance customer satisfaction, financial service firms are urged to prioritize technological investments. Mick Hegarty remains optimistic, noting that while the UK currently lags in digital customer identity, there are promising signs. Fintechs, in particular, show a keen interest in adopting innovative approaches, with an increasing number planning to boost investments in the coming year.
In the midst of legislative changes and policy shifts, emerging challenger banks within the UK could play a crucial role in propelling the financial service sector forward, ensuring it remains competitive on a global scale despite the challenges posed by the evolving landscape.
