FEATURE
Preventing fraud
and delivering
the best in digital
security comes
down to identifying
the customer and
engaging with them
securely and when
and where it matters.
possess on their customers. When
optimised in a compliant and correct
fashion, the insights gained from this
data can be used to aid the customer
in their decision-making and financial
management. Improving the user
experience in this way also serves to
symbiotically improve the bank itself.
These insights can be utilised to shape
something that the modern user has
come to expect: a highly relevant and
personalised banking experience. If
banks aren’t providing this kind of
service, it’s likely they’ll look to one
of their many competitors to provide
it. As a recent report from Capgemini
indicates, 63% of consumers are already
using a financial product from a big tech
company. Those banks that are willing
to invest in personalisation, including
tailoring advice, giving loyalty offers,
and suggesting relevant products to
customers based on their profile, will
remain competitive and reap the rewards.
For one bank, as reported by BCG, the
reinvention of its personalisation strategy
saw a 20% increase in revenue over just
three years.
Engagement builds trust
As well as generating new business and
profit in the short-term, banks can use
engagements with users to develop trust
and understanding in the long-term. This
is especially important for the majority of
users that use mobile banking apps to
check account balances, manage card
controls and deposit cheques.
Equally, through peer-to-peer
payments, banks are able to engage
with customers and develop trust by
acting as a mediator between friends,
colleagues and organisations. In turn,
this increases loyalty and a reliance on
banks to conduct transactions safely
and swiftly.
However, while the introduction of faster
payments services plays a pivotal role in
meeting the modern customers’ needs,
fraud and security remain absolutely
imperative – and potential roadblocks to
adoption. Traditionally, banks have used
the lapse in payment completion as time
to examine transactions and respond to
suspicious activity.
Now, the demand for speed has
impacted the time available to do
so. To overcome this, FIs – if they
haven’t already – need to begin
implementing a customer-focused
omnichannel authentication strategy.
This means offering a one-touch in-app
authentication experience that engages
customers in real time, while eliminating
fraud and providing a seamless user
experience. The bank can rest assured
that it has digitally signed proof of
consent of the transaction, while the
customer feels secure and in control.
Opportunities moving forward
It is more important than ever for banks
to remain competitive and innovative,
but it should not come at the cost of
customers’ security and increased fraud
rates. Preventing fraud and delivering the
best in digital security comes down to
identifying the customer and engaging
with them securely and when and where
it matters. Keeping them engaged and
building loyalty is a matter of trust,
built by offering consistent, relevant
experiences regardless of when and
where a customer chooses to interact
with their bank. u
50 Issue 25 | www.intelligentciso.com