While the banking industry has been adopting digital strategies for some time, the
closure of physical bank branches during the COVID-19 pandemic accelerated this
trend. As both customers and banks have rapidly adapted to digital interactions,
banks have begun to focus on technologies that will allow them to take advantage of
this shift. Greater process automation can simplify and enhance both the customer
experience and the bank's internal functions.
However, the switch toward digital interactions has increased the risk of fraud.
Overall, bank fraud attempts in the first quarter of 2021 rose 159% from the previous
quarter, with the bulk of those attempts in digital channels.
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While robust fraud
protection is essential for banks' bottom line and maintaining customer trust, digital
fraud protection strategies can introduce excess friction for customers conducting
more of their banking online. Banks that can improve the customer experience while
maintaining comprehensive fraud prevention tactics will have an advantage over their
peers as the high pace of digital adoption continues.
To see how banks are managing this balance, Arizent and American Banker surveyed
200 management-level bank employees on behalf of Onfido. The research, conducted
in April 2021, speaks to banks' plans to improve and expand customer digital
interactions while keeping pace with fraud prevention needs.
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Balancing Fraud Prevention
with Customer Experience
Banks must take a thoughtful approach to their digital ID verification
process to prevent fraud while managing customer expectations
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