Fraud management key to improving customer experience by financial institutions

Customer experience is one of the key determinants in choosing a certain service provider over another. This stems from personal experiences and referrals. The key for service providers then is creating a perception about their products being superior and reliable in one way or another.

A tweep recently stated that all banks are the same. They just package their challenges differently and once you understand this, you decide which one to get cozy with.

In this age of deepened technology, when the mobile phone is claiming a stake, the wrath on the less technologically savvy can be substantial. There is often a clear narrative of those who have been defrauded.

For some reason, the chances of involvement of the mobile phone is high. It is either the fraudsters will call you on your number or and use vulnerabilities on your phone, like internet banking, to wipe out your account.

It, therefore, matters that when these incidences happen, your bank is responsive, to not only repel them in the future but the quicker response time for recovery of funds. Unfortunately, with technology, it is not always possible to prevent fraud fully at inception.

A sad reality is that the majority who have been swindled and come out in public are often people who perhaps, feel courteous to listen to and innocently oblige fraudsters using time-tested ways to sweet talk them into revealing their personal information.

Security

A 2015 report by McKinsey affirmed that organizations must build digital resilience to protect their most valuable ‘information assets’ in what is a globally growing industry that is cybersecurity. This is the ability to design customer applications, business processes, technology architectures, and cybersecurity defenses with the protection of critical information assets in mind.

What we are seeing on social media in Kenya perfectly aligns with what they remarked “the consequences are painfully clear: nearly 80 percent of technology executives surveyed report that their organizations cannot keep up with the attackers’ increasing sophistication.”

It, therefore, means that there is not going to be a silver bullet. One must look to their different products and come with solutions to each as well as something broader to ease customer’s burdens.

For instance for Equity, they have rolled out One Equity number – 0763 000 000, whereby customers will ONLY receive calls from this particular number, regardless of the position the staff call holds. One can also call back the number or call 100 if using Equitel, or 0763 063 000 from any mobile network to reach the Bank’s Contact Centre.

On the EazzyBanking App, they have introduced a one-time PIN (OTP) ensuring customers will receive a verification code sent to their registered mobile number for every transaction they initiate as well allowing for fingerprint login for devices that support biometric authentication.

On Equitel, customers need to reconfirm a transaction before finalizing it. At the final leg of a transaction, Equitel prompts you to confirm a transaction by typing 1 TO SEND and typing 2 TO CANCEL. This is synonymous to Safaricom’s “hakikisha” that indicates the name of the receiver before you send monies to them.

Moving forward

A report by British financial inclusion lobby group Financial Sector Deepening (FSD) Kenya published last year asserted that 220,000 bank account holders who account for 3 percent of bank users in Kenya have reported losing their money from their accounts in 2019. But 75 percent of them were able to recover their money after engaging their financial instituitons.

Finding the right solution will involve reviewing information assets that are at risk. It is about deploying a user-friendly product or solution, which in this day and age, has a technology component, then once users start using, learning on the go, the pain points and addressing them as soon as they crop up.

Being easily identifiable at a glance in the solutions being rolled out is critical. It will ensure quicker responses to concerns and faster resolution to fraud.

One way to look at the hemorrhaging of perception on banks today is that if they don’t happen, solutions will never be found. Technology as an enabler and innovation as a catalyst will pivot us ahead.

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