Using Intelligent Automation in the Fight Against Fraud

Posted by Deborah Peace on Oct 10, 2018 9:30:00 AM

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Download ACH Alert’s whitepaper, “Transform Treasury Management with Actionable Fraud Prevention Solutions.”

PwC reports that over the past year, instances of fraud within the financial sector have increased by 130 percent. As fraudsters continue to evolve and seek new ways to steal financial information and funds, account holders want more than a basic banking platform that grants visibility over transactions – they need a detection and prevention tool that enlists their participation in combatting fraud. Banks and credit unions should consider implementing a modern, actionable online banking system that empowers account holders to take action in fighting unauthorized activity.

By directly involving account holders in the fight against unauthorized activity, financial institutions can transform their treasury management systems into a driving force for success. Here are some things to consider when your financial institution is selecting a fraud prevention solution:

Automation has become the norm

Industries across the board are adopting technology that is driven by intelligent automation to deliver services and experiences that are compatible with the way consumers conduct their everyday life. Consumers have grown accustomed to unlocking smartphones with their fingerprint or face, yet not all institutions have taken steps to streamline their own security measures. Manual processes, like calling an account holder to communicate suspicious activity, simply do not make sense with today’s risk profile. Likewise, fraudsters certainly do not mind the manual processes that bog down resources and create greater potential for human error.

Instead, implementing technology that promotes automation, visibility and control enables institutions to efficiently monitor for suspicious payment activity and automate out-of-band alerts and the transaction verification process. This minimizes the time spent by employees reviewing transactions for fraud and following up with account holders to verify the validity of transactions.

Applying technology to seamlessly and conveniently automate the fraud detection, response and dispute process will give institutions a competitive edge. At the same time, account holders can enjoy a true self-service experience where issues can be quickly resolved from the comfort of their home or office on the device of their choice.

Un-bundle services

Account holders are used to receiving bundled package offerings from their cable companies, cellular service providers and insurance companies – but not from their financial institution’s treasury and cash management systems. In fact, most digital banking providers often drive up costs associated with online banking to be able to offer “free” fraud detection services to account holders. In reality, bundled service offerings can actually negatively impact the customer experience by creating an environment that leads to greater inefficiencies, rather than an easy and convenient mobile-ready experience.

Bundled systems require both the financial institution and the account holder to give up some levels of automation. To illustrate, the return handling and re-credit process for many of these bundled services is not automated on the back end, which creates another manual process for employees and another added cost for the institution.

Such inefficiencies may have reputational implications as well. If a commercial account holder specifically requires an automated positive pay tool, then that account holder will switch to an institution that best fits his or her needs.

Balance is key

Finding a balance between a positive customer experience and adequate security is vital in a treasury management system for financial institutions in today’s competitive market. The right system will help institutions attract valuable new deposit relationships, retain existing account holders and meet complex compliance objectives. This can be achieved with today’s modern fraud prevention tools that use intelligent automation and interactive technology, like voice biometrics and SMS texts. Doing so will help banks and credit unions keep a steady cadence between maintaining compliance with all regulatory requirements, generating revenue and delivering an outstanding banking experience – while fulfilling account holders’ top priority – keeping their transactions and accounts secure.

With automation, financial institutions can achieve new levels of account holder satisfaction and enhance the overall banking experience while ensuring the highest standard of security. Institutions that eliminate outdated, labor-intensive and time-consuming processes with actionable fraud prevention tools will reap numerous benefits and position themselves for profitable growth.

For more information, download our whitepaper, “Transform Treasury Management with Actionable Fraud Prevention Solutions.”

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Topics: Treasury Management