Automating your fraud detection and prevention services doesn’t just improve your financial institution’s ability to detect and prevent fraud. It also improves the customer experience in many valuable ways. Check out these often underlooked customer-centered benefits of fraud detection automation.
1. Automation speeds up fraud detection.
You cannot manually screen transactions for fraud at a quick pace. Customers don’t want to deal with long wait times when depositing checks, applying for loans, making big purchases, or dealing with other banking essentials.
Your customers live in an on-demand world. They can whip out their phones and have almost anything they want on their doorsteps in less than two days and sometimes in just a couple of hours. To meet their expectations, your financial institution needs to provide fast, reliable services, and automating fraud detection is a critical component of this process.
2. Digital technology enhances personal services.
Your digital tools should never be a standalone solution. They should be an enhancement of what your staff can do.
For instance, if a customer is applying for a line of credit, they want digital tools that allow them to apply online, but they also want the ability to call a loan officer with questions. In this situation, the digital tools don’t replace the loan officer — they simply enhance the experience for the customer by making the application process more convenient.
Your anti-fraud solutions should work in a similar way. They should constantly scan transactions for signs of fraud, and then, as needed, they should flag transactions for manual review by a human. These tools won’t necessarily replace your staff members, but they will improve the fraud detection process by enhancing what your team can do on their own.
3. Automation creates more time for human interactions.
By automating any task, you save time for your employees. When your employees are no longer burdened with manual fraud prevention processes, they can turn their attention to customer service.
When you invest in process automation, your financial institution can answer calls faster, shorten lines in the branch, and provide better, higher-quality services to your customers while still using the same amount of human resources.
4. Machine learning personalizes fraud prevention tactics.
In addition to automating fraud detection, you should also focus on solutions that use machine learning. Rather than screening for fraud based on a simple ruleset, these tools take multiple data points into account when assessing a transaction for fraud.
More importantly, they improve their efforts over time. If they generate a false positive, they learn from the situation.
Machine learning fraud detection tools personalize fraud prevention by getting to know your customers and their unique patterns. These tools understand that while a certain transaction may seem fraudulent on one customer’s account, it may be completely expected on another customer’s account.
By personalizing fraud prevention through automation and machine learning, you improve the customer experience by reducing the risk of fraud and by reducing friction in the customer experience.
5. Intelligent fraud solutions reduce friction in the customer journey.
Remember that customers want to be protected from fraud, but they also want to be able to use their accounts easily. Fraud detection tools that are too strict can inject unnecessary friction into the customer experience.
For instance, imagine a customer has traveled abroad and is making multiple purchases. Your bank’s fraud detection software sees that the customer is far from home, and it shuts down their card. The customer is embarrassed and confused when their card is rejected at a merchant’s place of business. To get their card working again, the customer has to call your bank, wait on hold, and explain the foreign transactions are legitimate. This is friction.
Automated fraud solutions that use AI and machine learning reduce the risk of this type of friction. They detect and prevent fraud in a way that safeguards the customer experience.
Contact SQN Banking Systems Today
At SQN Banking Systems, we have automated fraud detection and prevention tools fueled by AI and machine learning. We can help you reduce fraud in a way that protects the happiness of your customers.
To learn more, contact us today. We can start with an assessment of your current anti-fraud strategies and help you find the best path forward.