KUALA LUMPUR (April 23): The majority (77%) of Malaysian consumers valued 'security' as the most important element of the online experience, followed by 'convenience' (12%) and 'personalisation' (11%), according to information services firm Experian's Global Identity and Fraud Report for Asia Pacific (APAC).
In a statement today, it said the value Malaysian consumers place on security is the second highest in APAC, after China consumers.
The report also found that 57% of Malaysian businesses had experienced an increase in online fraud-related losses over the past 12 months.
It said this includes account takeover attacks and fraudulent account openings.
Experian said as a result, 64% of Malaysian consumers surveyed felt that the trade-off for convenience in today's digital society was decreased privacy, with 65% of businesses in Malaysia collecting more personalised data to develop a more tailored user experience, targeted products and offers.
Experian managing director for Southeast Asia and Emerging Markets Dev Dhiman said with interactions between businesses and consumers increasingly taking place over digital channels, building an environment characterised by security and mutual trust should be a leading priority,
"It will be imperative for business leaders to invest in identity verification and fraud management capabilities to realise the full potential of Malaysia's digital economy," said Dhiman.
Experian said data serves as an enabler of digital services such as e-commerce, a sector that is forecasted to grow more than threefold from 2018 to 2025 in Malaysia.
It said beyond consumer convenience, positive developments in data will be vital to drive Malaysia's digital potential and its Digital Transformation Acceleration initiative, anticipated to accelerate the country's growth through digitalisation.
While existing security methods used by organisations are still more traditional in nature, the report findings revealed that new technologies and advanced authentication solutions are viewed favourably by consumers.
According to the report, Malaysian consumers that have encountered physical or behavioural biometrics during online banking showcased confidence in these security measures: 85% had high confidence in physical biometrics, while 86% indicated high confidence in behavioural biometrics.
Dhiman said consumers are increasingly looking to organisations to implement measures to enhance security and protection in digital interactions, and they are also looking to them for a more simplified approach.
"One approach that has proven both effective and well received among consumers is biometrics, which speeds up and simplifies the identity verification process for consumers," he said.
The report added that transparency is another key determinant in building mutual trust.
It found that 81% of Malaysian consumers expected full transparency from businesses on how their information is used.
"Recognising this need, 53% of Malaysia businesses surveyed have invested more into programs designed to increase transparency in the last six months, with 61% having plans to invest more into such initiatives.
"Examples of these initiatives include educating consumers, communicating terms more concisely and helping consumers feel in control of their personal data," said Experian.