Enhancing the Customer Experience While Preventing Fraud

Today, with the ever-increasing rates of fraud and the rise in competitors you may find yourself in a dilemma. How do you convert more customers but reduce your risk of fraud? 

You also have to provide a superior customer experience. The truth is, the more personally identifiable information you have on a customer, the more likely you are to reduce your own risks. The key is finding the balance in asking for that data with using it to provide a better user experience.

Working With The Customer

When customers are working with you regarding their finances, they expect to share some of their personal information.  A good customer experience will convert more people into customers but finding the balance between fraud protection and an enhanced experience can be tricky. The more personal information you ask for, the lower your conversion rate will be. Similarly, if you require them to login with their bank credentials, some customers may drop off, no wanting to go through the additional process. The customer may not convert because they do not want to share more details. For some, gathering the information you’ve asked for may be too much of an inconvenience. So, what you must do is provide them with benefits. If they are giving you the details to their bank account, you can auto populate forms for them, that is a basic option, easy to implement, and it saves them time. Secondly, you can offer them better rates and bonuses for providing you with information that you know will save you money.

When creating a customer workflow, we can estimate how much fraud you can prevent. If a fraud solution only prevents 5% more fraud, but it decreases your conversion rate by 20%; it might not be worth it. Customers value an easy, non-invasive experience as much as they value fraud protection. Especially because they may not know why you’re asking for specific personal information. Rather, it would be more practical to waterfall their workflow from fraud detection solutions that do not require their interaction to ones that do, also known as credentialed solutions.

Here’s An Example

When utilizing a fraud solution to verify a bank account, if the consumer does not make it past the non-credentialed fraud filter you could waterfall them into a credentialed process, where they could connect to their bank account to verify their identity. This way if they drop off at the first filter, you would have lost that customer anyway.  Rather now you have the opportunity to convert them, increasing your customers and reducing your risk. Additionally, you’ll be presenting them with another chance to receive the financial assistance needed.

Communication Is Key

To enhance their experience, they need to feel protected and that they are receiving value. Take the opportunity to explain why you require certain information and how it benefits them. Their questions and concerns may seem unimportant to you, but they want to understand what you’re doing with their data. Always remember when working with customer data that they don’t have as much information as you do regarding their fraud protection. So, if necessary, take the time and answer their questions and alleviate their fears.

Being transparent and honest when they contact you will create a bond between them and the company. They’ll be more willing to work with you when they know you’re trustworthy. 

Fraud Protection

Fraud is a complex and multi-layered issue, especially when opening an account, onboarding, or transacting payments digitally. That means that fraud prevention should have just as many, if not more, layers. It is always better to utilize multiple solutions and overlap their findings. Each solution will be sufficient in different ways, so using several helps prevent cracks in the data. That is why we make it our job to offer you a variety of solutions to decrease your risks and increase your coverage. We provide you with a variety of solutions. And depending on your needs, that not only can be waterfalled together but work well with other solutions and providers.

A Positive Customer Experience

For help preventing fraud and enhancing your customer experience, contact ValidiFI at 844-562 6678. We help you navigate the mine field of financial risk and fraud mitigation. We’re available to answer any questions on customer awareness or fraud management.

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