The research reveals fraud prevention and low-friction experiences are top priorities for banks, and they recognize the need to balance both across multiple channels and transaction types.
NEW YORK, June 25, 2024 /PRNewswire-PRWeb/ -- American Banker, Arizent's leading resource for senior executives in financial services, publishes its Frictionless Fraud 2024 research report, which analyzes the tools and technologies banks are using to verify and authenticate customer identity. Sponsored by Mitek, the report's findings reveal that fraud prevention and low-friction experiences are top priorities for banks, and they recognize the need to balance both across multiple channels and transaction types.
Improving fraud prevention is the top customer priority for most banks over the next 12 months. However, following very closely behind is process automation to simplify or enhance the customer experience and deliver a low-friction user experience.
"This reflects the need for balancing fraud prevention and customer service, and the reality neither issue exists in a vacuum," says Janet King, Vice President of Research at Arizent. "These functions must work in concert with one another for banks to profitably grow their business. This marks a general shift in approach from treating fraud prevention as a largely independent technical challenge with collateral effects on the customer experience."
Respondents recognize fraud occurs across multiple channels and, consequently, favor best-fit verification and authentication methods for each channel. At brick-and-mortar branches, banks want face-to-face interaction, which means ID document verification by a human. For digital banking transactions, one-time passcodes (OTPs) dominate. Call center interactions, which aren't quite face to face or digital, rely on PINs and passwords, OTPs and knowledge-based authentication (KBA) questions.
But banks have more work to do to get a comfortable handle on their fraud-friction challenges. Few respondents believe their organizations are very effective at leveraging tech to improve fraud prevention (21%) or deliver a low-friction experience (10%).
"Only a little more than half of bank professionals are confident their current customer verification methods are keeping up with the pace of fraud and emerging fraud trends, which leaves clear room for improvement," King continues.
Modernization of identity verification and authentication tools are top priorities going forward, garnering significant investments over the next 12 to 18 months. Banking leaders also see AI as a potential tool to help them combat certain types of fraud, especially in digital channels.
The findings of this research report are being presented and discussed at American Banker's DIGITAL BANKING conference, which takes place at The Boca Raton resort in Florida, June 24-25, 2024.
To learn more about the interplay between fraud prevention and customer convenience, including what's working and falling short and how new technologies could change the playing field, read the full report here:
https://www.americanbanker.com/research-report/maximizing-fraud-prevention-while-minimizing-customer-inconvenience
Research Methodology
This research was conducted online by American Banker (an Arizent brand) during April and May 2024, among 158 banking professionals across various job titles and functions. Respondents were screened to ensure direct involvement with, or significant knowledge of, identity verification/authentication, cybersecurity and/or risk/fraud.
For more information on this survey or other Arizent research, contact:
Janet King
Vice President, Research
Arizent
[email protected]
M 207-807-4806
About American Banker
American Banker empowers banking professionals with unique analysis and insight into the ideas transforming their business and industry. Across its journalism, events, research and benchmarking, it helps drive the way forward through the complexity of business innovation, retail and commercial disruption, technology, regulation and reform. With a banking community 850K strong, American Banker's content connects leaders online, in person and in print every day.
About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.
About Mitek
Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek's advanced identity verification technologies and global platform make digital access faster and more secure than ever, providing companies new levels of control, deployment ease and operation, while protecting the entire customer journey. Trusted by 99% of U.S. banks for mobile check deposits and 7,900 of the world's largest organizations, Mitek helps companies reduce risk and meet regulatory requirements.
Learn more at https://www.miteksystems.com/idv-solutions
Media Contact
Janet King, Arizent, 212-803-8500, [email protected], www.Arizent.com
SOURCE Arizent
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