Seemingly, a focus on fraud management is at odds with providing an optimal customer experience, just as an emphasis on customer-centric practices would seem to get in the way of aggressive and effective fraud management procedures.
On the one hand, the prevalence of increasingly sophisticated financial fraud absolutely cries out for financial institutions to find and implement increasingly sophisticated fraud management solutions to keep a step ahead of enterprising criminals. And that challenge is magnified, of course, by the proliferation of new digital channels that attract the bad guys just like a candle flame attracts a moth.
On the other hand, those fraud management solutions absolutely cannot do anything to undermine a quality customer experience or interfere with the fast transaction times today’s customers expect. It has become almost axiomatic to say that retail banks need to become more customer-centric, but that doesn’t necessarily mean that bankers have discovered exactly how to do that, let alone to do it while maintaining effective defenses against fraud.
But far from being the mutually exclusive goals they can often seem to be for financial institutions, customer-centric practices and processes, as well as aggressive and effective fraud management procedures can actually be achieved through a common solution, thanks to cutting-edge technologies.
That said, it’s also true that many banks have yet to find that solution.
The wrong solution really does undermine both goals
Too often, institutions have relied on multiple systems to combat fraud, each of them designed to fight one aspect of the threat, or one modern banking channel in isolation from the big picture.
Traditionally, those patchwork processes lead to inefficiencies that really do disrupt what customers expect to be a seamless experience. At the same time, those inefficiencies - and that fragmented approach - can leave the institution even more vulnerable to the threats they don’t anticipate or can’t see, an ever-present risk in the rapidly evolving digital banking environment.
The worry that you can’t have state-of-the-art customer-centric policies and state-of-the-art fraud protection at the same time grows out of such inadequate solutions. But there are fraud management solutions that actually break down the barriers between fighting financial crime and centering on customers, however, such as the integrated fraud detection and prevention systems from NICE Actimize, a recognized leader in financial crime risk management. Built on the most advanced predictive analytics platforms and taking a holistic view of all of the institution’s processes and practices, it allows for maximum efficiency that makes for a solution that both enhances fraud detection and delivers an exceptional customer experience across all banking channels.
The customer is always right
If anyone doubts that customer-centricity is both the unstoppable wave of the future in banking and the driving force behind fraud management decisions, a recent report by Dr. Andrew Jennings, FICO Chief Analytics Officer and Head of FICO Labs, should put that question to rest.
In “Customer Centricity: Four Bank Success Stories” Dr. Jennings takes what can be the somewhat vague and elusive goal of increasing customer centricity and walks the reader through the actual challenges and decisions made by four disparate banks in achieving that goal.
The case studies look at banks in different geographic areas, at different stages of development, and with varying retail products and operational objectives. One thing they have in common, though, is a commitment to “putting customers at center stage” through the use of cutting-edge technologies. Another shared attribute, as the White Paper details, is that they are achieving success, as demonstrated by factors such as increased profits or market share, decreased compliance risk, and measurable increases in customer satisfaction.