Amid UK Crackdown On Fraud, Banks Can Prove Their Mettle To Customers

Fraud prevention alone is not enough.

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Customer experience (CX) is everything, say the analysts. However, my recent discussions with leaders in the banking industry reveal a different truth. Given the choice between fraud prevention and CX, many would still prioritise fraud prevention.

I understand. The UK government has recently committed to crack down on dirty money and fraud, and banks are at the forefront of this. The wrath of regulators or the fines for non-compliance could reach hundreds of millions of dollars are more immediate and financially obvious than poor customer reviews.

However, I don’t think banks have to, or can afford to, choose between the two.

Fraud prevention alone is not enough

The long-term reward for great CX is invaluable. Each and every customer experience builds customer loyalty. Such loyalty is worth pursuing: 40% of UK banking customers say they’ve stayed with their bank for over twenty years. Fraud prevention will need to become part and parcel with excellent customer experience to achieve loyalty for the next twenty.

Key decision-makers in banks are asking how this integration can be done. Below, I highlight three lessons we’ve seen by our own banking customers who have achieved success.

Lesson 1: Security can be weaved into excellent customer experiences.

Lesson 2: Meet the customer on their terms.

Lesson 3: Give the customer a chance to prove they are trusted.

Going forward, I explore three key touchpoints where fraud prevention can be weaved seamlessly into an excellent experience. And securing customer loyalty starts on Day One.

Touchpoint 1: Modernise the onboarding process for modern lives

Onboarding to a bank often takes a large time commitment from the customer. In many cases, people are asked to fill in lengthy forms and check meticulously to avoid mistakes. This commitment of effort doesn’t sit right with the customer – especially when their experience of signing up to other apps and services doesn’t feel like hard work.

Banks can start their relationship with the customer well by offering a simple, intuitive signup process. It starts by replacing heritage systems with current tools to match the expectation of agility and speed that today’s customers experience from services like Uber or Spotify.

Sync with customers to offer loyalty-worthy experiences

Honest customers can breeze through the system thanks to technology such as ID verification processes. The right technology can extract the information from a scanned document instantly, avoiding mistakes, and allowing good customers to move quickly onto the next stage of the process.

Despite the speed, a spoof card or passport won’t deceive the system. Simultaneously, biometric processes also check customer documents for authenticity, based on AI, forensic level technologies, and NFC authentication (essentially, DNA for documents).

Gartner predicts that 80% of organisations will be using document-centric identity proofing for onboarding this year. This technology is the key to the excellent onboarding processes of today: highly secure but also highly intuitive for the honest customer.

Sync up with customers to understand what they want, and loyalty will come.

Touchpoint 2: Big decisions require an always-on bank

Many of us live in a fast-paced world. We don’t do ‘life admin’ during the hours of nine to five, when banks are typically open. Maybe we’re ferrying the kids to their classes, working from home outside of town, or can’t spare enough time in our lunch breaks.

When people need to make big financial decisions, they want to do it in their own time. This is now truer than ever, as people reassess what matters in their lives post-pandemic.

The moment could be anything from a midnight house-hunt, to the Sunday afternoon when someone finally decides to get a loan for a business they’ve been planning during COVID. A customer wants to open up their banking app and get started. Technology can easily help your business and customers achieve this.

Adapt security design for a fast-paced customer lifestyle

Banks need to verify identity and liveness in this moment: is the person who they say they are, and are they really there in this moment, rather than a recording on a screen?

To do this, biometric technologies can scan a selfie, and match it to an identity document. At the same time, the biometric system can check whether a face is spoofed in paper, on a screen, as a mask, or through any other form of spoofing technique.

In fact, new research from ID R&D shows that machines are indeed much faster and more accurate than humans at identifying liveness. It’s great news for banks that can deploy human agents to provide more specialised advice elsewhere. It’s also great for the customer, who can be approved for a loan at anytime, anywhere – even from bed!

Touchpoint 3: Day-to-day banking should mean one great experience after the next

Finally, paying attention to every day-to-day touchpoints is an excellent way to prove to the customer time and time again that your bank is worth trusting, long-term.

Banks are already doing brilliant work embedding critical security into experiences that fundamentally make life easier for people. No one suffers for security; in fact, customers thrive thanks to excellently designed experiences that are rooted in security.

Those experiences could be anything from being able to order a new card through face and voice verification, to simply paying for your shopping with a selfie. The simplicity of each one for the customer makes a difference to their long-term loyalty.

Show continuous trust – not suspicion

The next stage for banks is greater personalisation than ever. This means understanding individual customer spending habits and prompting verification when something seems out of the ordinary.

But while it could be a fraudster, it could also be a shift in our lifestyle when we get a promotion or have a baby! In moments of joy like these, the last thing the customer wants is suspicion of their spending habits that sees them locked out of their accounts.

A simple check through face verification or voice command will keep both the customer and bank satisfied that nothing is awry, and both parties can get back to their daily lives.

Fraud prevention and customer experience can go hand in hand

Each touchpoint offers banks a chance to further secure the loyalty of a customer through brilliant experiences. Each is also a chance to prevent fraud and stay on the right side of the regulator.

Banks must innovate to bring these two aims closer together. This means having the mindset and the technologies to allow seamless digital access and participation to all good customers.

Genuine loyalty is a long-term goal. However, it starts with excellent customer experiences suitable for a modern age, now.

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