Reports & Whitepapers: Portrait

Balancing fraud prevention with customer experience

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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. 1 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. Sponsored by W H I T E PA P E R 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 1

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