96% of Financial Institutions plan to invest in new technologies and upgrade existing systems to mitigate increasing levels of fraud while minimising disruptions to customer experiences.
GBG has just launched our report into the challenges European Financial Institutions (FI’s) are facing in balancing fraud prevention and detection with a frictionless customer experience.
The report, Smoothing the Customer Journey and Preventing Fraud, is illuminating reading, particularly at a time when fraud levels are at unprecedented levels. In 2020, cases of impersonation scams in the U.K. doubled, and Authorised Push Payment (APP) fraud losses amounted to £479 million, an increase of 5% on the previous year.
It’s not surprising, then, that 96% of respondents in our report noted an increase in some type of fraud in 2020, including scams, phishing or third-party identity theft.
Consequently, 93% cited ‘Managing fraud losses in current businesses’ as their highest priority.
The findings also reflect the significant challenges faced by FIs in managing those losses and maintaining control, while ensuring customers’ experiences are impacted as little as possible by these measures. The most challenging in which to achieve this balance, respondents agreed, was the new customer onboarding phase.
What was clear was the focus on technology and its key role in meeting this challenge. Almost all of the FIs surveyed (96%) plan to invest in or prioritise new technologies and capabilities to combat fraud.
Launching the report, GBG EMEA Managing Director Boris Huard said: “Our ‘Smoothing the Customer Journey and Preventing Fraud’ report leaves no doubt as to the emphasis FIs are placing on data and technology to help solve their biggest challenges. Multi-layered verification and data diversity are amongst the top best practices to reduce friction and fraud.”
The report provides insights from more than 900 respondents working in fraud at FIs in five key European markets: the United Kingdom, Germany, France, Spain, and Italy.
Further findings include:
An increase in fraud
A focus on integration
Significant technology investment plans
It’s clear that while commercial growth and fraud mitigation are driving factors for FIs, so too is a smooth customer experience. As the perpetrators of fraud adapt and become more sophisticated, so do the technologies that FIs employ to detect them - but ensuring multi-layered solutions impact the vast majority of honest customers as minimally as possible is key.
To read the report in full, download it here and find out how GBG can help you meet your fraud mitigation and customer experience goals.