Banks and financial institutions have a current challenge in meeting increasing customer demands. The financial industry has turned to customer relationship management (CRM) technology as a solution to providing a better customer experience from mobile apps to branch locations. CRM has become almost a necessity within the financial services industry to create customer experiences which build brand value.
With consumers having the power of choice in a highly competitive market, customer experience is front and center. Strong customer relationships are a key indicator of a healthy business. In today’s changing climate, banking consumers now possess the power of choice. A choice that has unfortunately made brand loyalty decrease in recent years, with many banking customers having more than one place they store their money, take out loans, or invest for the future.
Customer Experience is King
Customer experience is king. Banks and financial institutions are leveraging technology to improve the overall customer experience, this is where CRM lends a helping hand. CRM helps banks learn more about their customers through adaptive analytics and performance tracking to create brand value. With built-in artificial intelligence, CRM can learn from customer activities to help financial organizations uncover opportunities to market products and services with a personalized touch.
CRM analytics create personalize financial journeys for each customer. Tracking data across the organization to give bankers a three-sixty view of customers. Salesforce, the global leader in CRM software, states several benefits of banks adopting this technology including boosted sales, increased lead conversion rates, better service, and increased customer loyalty. The last one is huge as in today’s global economy, brand loyalty is not what it used to be.
An IBM study found $83 billion is lost each year due to inconsistent or poor customer experiences. CRM software helps banks and financial institutions aggregate customer data across the organization to discover opportunities to market products and services. A tailored experience which creates a customized financial plan for each customer, technology being used as a tool to drive brand loyalty.
Fraud is Still a Top Priority
Even though customer experience is the main focus among banks and financial institutions, fraud is still a top priority. This presents a problem for the financial services industry. How do you balance customer experience while attempting to optimize fraud detection? The answer is complex but with advanced technologies like machine learning and AI, a solution is here.
Fraud detection systems in today’s banking environment are being challenged more than ever. A 2018 World Payment report found non-cash transactions globally increased by 46% between 2012 – 2016, from 331 billion to 482 billion annually. This massive transaction volume requires a delicate balance between customer experience and fraud detection efforts. Banks are creating new channels to meet the changing needs of customers which also opens up new channels for criminals to exploit. Banks are challenged with creating a balance between providing excellent customer experiences while protecting customers from fraudulent activities.
Fraud orchestration is the answer to solidifying this fragile balance between customer experience and holistic fraud management. Each day bank CRMs are flooded with thousands of complaints on lost/stolen cards or suspicious transactions. These complaints must then be sent to the fraud team for investigation. This manual process is sluggish and cannot keep up with the number of transactions banks are doing on any given day. Fraud orchestration is the key to detecting threats at the source in real time, breaking down business silos that can expose banks and financial service companies to unwanted fraud risks.
How Fraud Orchestration Helps CRM Sing
CRM helps banks and financial institutions optimize performance through advanced analytics to turn data into leads. Fraud orchestration possesses the ability to integrate with CRM platforms to gather data at the source, deliver real-time analytics, and create a holistic view of fraud across the organization. Let’s take a look at each of these benefits a bit further.
Data At the Source
Fraud orchestration integrates with CRM software allowing analysts to access fraud data at the source. This leads to more proactive fraud detection and the ability to view fraud patterns existing across multiple channels. Fraud detection is optimized when all fraud related data is made available in one centralized platform. A platform where analysts can track trends and analyze data across any CRM software. Customer data collection which aids in preventing fraudulent activities at its origin.
Dynamic Data Collection
Seamless integration with CRM allows fraud analysts to examine alerts and complaints in real-time, lowering the risks of missing suspicious activities. Banks’ current processes for accessing CRM fraud alerts is antiquated and simply not keeping pace with today’s market. Fraud orchestration gives analysts the ability to react to threats in real-time, lowering financial risks for the entire organization. Active data collection increases operational efficiency across the enterprise. When data flows freely from CRM to a fraud management mission control, fraud orchestration elevates threat response to another level.
A Holistic View
A big challenge for some banks and financial services companies is their fraud detection systems are merely transactional, not focused on the big picture. Systems that merely see the forest for the trees. Fraud orchestration uses real-time analytics which can recognize potential patterns of fraud or other fraud cases associated with customized variables. A centralized fraud platform allows fraud analysts to have a 360-degree view of threats from all angles. A transparent view of illicit activity across all service channels, giving analysts the tools to combat fraud in real-time.
Wrapping Up
CRM is helping revolutionize how banks and financial institutions attract, retain, and help customers meet their financial goals. These advanced platforms can also house valuable fraud data that needs to be accessed in real-time. Fraud orchestration provides a way for CRM data to flow into a centralized management architecture, removing barriers that can slow processes. Increased financial service options for customers opens new threats for banks and opportunities for criminals. Balancing fraud management with customer experience is a great strategy to build brand value while dynamically managing threats. Fraud orchestration is the management architecture that can help keep this balance in check for any financial organization.
