The Financial Brand Insights - Fall 2021

” Financial services organizations that democratize and maximize the inherent value of customer experience data will be better positioned to meet current and future expectations from their clients and prospects.

efficiently. On the other hand, it’s their money at stake—and they know that cybercrime is a danger. There’s a constant tug-of-war between the perception of convenience and perception of security. According to a recent article from McKinsey , financial services organizations need to design-in security to create a safe and trustworthy customer journey. Yet McKinsey agrees that “…organizations will have to make trade-offs between security and the customer experience.” The trick for digital banking, then, is to walk a fine line between frictionless and “productive” friction. Productive friction is the art of interrupting workflow with security—at the right time, and in the right measure for the right segment. Banking organizations should leverage customer experience data to determine: ● Howflexible should multifactor authentication be, and for which segments? Should customers of all segments be able to choose less secure schemas like email or SMS-based codes, or be forced to use higher-security measures that may create more friction? ● Which users, fromwhich segments, need to reauthenticate? Reauthentication (think of re-entering a password to confirm a transaction) significantly strengthens security, but if it’s required too frequently customers can become annoyed. ● How long should customer devices for each segment be recognized? If recognition is too lengthy, the risk of account takeovers grows. Yet if it’s too short, customers may find the authentication process overly burdensome. TIP #4: Use Data Proactively In the world of digital banking, ‘good enough’ is not sufficient. It’s not enough to leverage

customer data to find and fix technical errors, design flaws, and other problems. Financial services companies need to use technology like anomaly detection and real-time analytics proactively to catch hard-to-spot problems like nonhuman fraudulent activity (think of bots copying-and-pasting login information repeatedly) - before this leads to a data breach or customer defections let alone the financial cost to remedy. The Bottom Line Financial services organizations that democratize and maximize the inherent value of customer experience data will be better positioned to meet current and future expectations from their clients and prospects. By effectively capturing, monitoring, analyzing and segmenting customer behavior data using advanced analytics solutions, banks and other financial institutions can ensure that they’re conducting the right analysis of the right data, at the right time—and putting the insights derived in action to deliver superior digital experiences that ensure growth and retention of account holders and customers. n

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THE FINANCIAL BRAND INSIGHTS FALL 2021

THE FINANCIAL BRAND INSIGHTS FALL 2021

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