Quantifying The Impact of Fraud on Customer Expectation

    In 2019, financial institutions find themselves in a tight spot trying to balance between fast payment deliveries and creating a pleasant customer experience, while at the same time trying to maintain the ever-changing payment security standards. Despite the current introduction of multiple protection measures, criminals have proven to be very exploitative in every weak point they can access in the systems. The customers feel the most impact from these battles, and they certainly change their interactions with banks or any other payment processing facilities. This is the reason why companies such as the HPS WorldWide introduced the PowerCard software, which is fully integrated with all international payment networks to support all major and minor back-office payment transactions. 

    According to a survey done by the Futurespace company where a study was conducted among 1,000 US consumers, with the aim of uncovering some insights on consumer’s sentiment and to reveal possible areas where banks and other payment institutions can be more vigorous at mitigating online frauds and increase customer awareness. The results of the study concluded that:

    • 77% of all bank customers check their accounts on a weekly basis on suspicion of fraudulent activities, whereas 35% do this daily. Breach of data is no longer considered as news anymore, mainly because it has become the order of the day. 
    • 62% of the savvy’s respondents believed that they were at risk of some form of fraud today than they were one year ago. International platforms such as Quora, Facebook, and Marriot have already started showing signs of weariness, and they are not even financial institutions. This goes to show how much this problem has spread.
    • 38% of the respondents identified the attempt of fraudulent activities in their accounts even before their banks informed them. Actually, in some of these cases, the banks never made any efforts to notify the customers of the impending risk. To be realistic, no bank is capable of identifying every attack. However, with the introduction of leveraging dynamic and machines that are powered by real-time analysis, HPS’s PowerCard Software allows the banks to discern between a genuine and fraudulent activity accurately. 

    The desire for mobility and convenience is continually propelling this urgency, but is the satisfaction of this desire is attempted without the proper safeguarding software, it only goes to make it easier for the fraudsters to access customer data. Authentication is a key requirement here, primarily because of the modern bank transactions are mostly CNP (card not present). According to some predictions made by the payment forum a few months ago, the financial impact of CNP centered frauds are most likely to increase from $6.4 billion to over $10 billion in the year 2020 because without a physical card, banking systems will continue to encounter challenges in validating the true identities of their customers. 

    Ways to improve consumer confidence and expectations

    1. Advice customers on which systems and software to use to keep scammers at bay.

    You would expect every bank’s customer service sections to adequately knowledgeable about the possible weak points that fraudsters target and which are the best software to adopt to minimize these risks. Once the customers start acting on these pieces of advice, they are more likely to trust the opinion of their banks, which will in turn but their loyalty completely. Additionally, in this information filled, fast-paced world, people will intuitively seek out quick, simple processes that would narrow down their options so that they are left with a few but precise choices. Banks should, therefore, incorporate some software advisors who will show customers the right shortcuts and how to discover the safest products without necessarily having to conduct redundant research.

    2. Back up the advice with reviews and reassurance

    Having a hefty focus on capturing some reviews can help in this case. It can be done by directly sending a follow-up email to ask for the review a few days after a customer has successfully used software and received their payment safely. Customer engagement does not, however, end at the receipt of payment, it is the moment that will trigger another curious part of the customer, depending on the relationship you have with the said customer.

    3. Help the customers to solve their problems

    In case something does not work as expected, help the customers use the new software. This will make the customers feel more connected to you and significantly increase their confidence in your bank.

    Conclusion

    HPS has undergone rapid growth, which has seen it become one of the leading payment and cards tech companies with more than four hundred clients all over the globe. It has been providing its customers with innovative tech solutions that make the entire payment value chain a pleasant experience. The PowerCard payment solution allows customers to quickly and accurately detect fraud to establish trust and a sense of security between the customers and their preferred method of payment.

    Tags:

    • Tom La Vecchia

      Founder of New Theory & X Factor Media

      Founder and Publisher of New Theory Magazine and Podcast. Serial Entrepreneur who loves wine, cigars and anything that allows to people to connect and share experiences.

    You May Also Like

    SEO

    How SEO can Make or Break Your Business

    In this era of technological innovation, everything has changed. We eat food off plates ...

    Building Your Brand, Link By Link – Why Your Business Needs Link Building

    With SEO being integrated into the marketing plans and budgets of many successful businesses, ...

    How Personal Loans Can Improve Your Credit Score

    There are many ways to improve your credit score, with some being quite interesting. ...

    Subscribe!