Recent Aite Group survey data shows 74% of FIs state that improving the customer experience is an important component in the business case for a new fraud solution.
Boston, May 31, 2017 — Aite Group’s report, Financial Institution Fraud Trends: ATO and Application Fraud Rising Rapidly, finds that two of the largest challenges facing financial institutions are both identity-related threats—application fraud and account takeover fraud. Both fraud threats were initially fueled by the wealth of personal information available from so many data breaches, but fraudsters are becoming more sophisticated at aging the synthetic identities they create and thereby developing a new set of challenges for FIs. As a result, FIs are evaluating whether improving security and the customer experience can offer a competitive advantage.
“Improved security doesn’t have to translate to greater friction for customers,” says Aite Group senior analyst Shirley Inscoe. “Both FIs and fraud solution providers will benefit from understanding the current challenges and the resulting opportunities in the market,” she says.
This Impact Report focuses on the extent to which these current fraud threats are impacting FIs as well as on the effect of a relatively new function in FIs that focuses on improving the customer experience. It is based on Aite Group surveys of 83 executives at U.S. FIs. Respondents work with FIs of many sizes, representing the full spectrum of U.S. FIs.
About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.