Customer-Centric Banking- A Weapon Against Fraud

By CIOReview | Tuesday, July 9, 2019

Throwing fraudsters out of business is the main goal ultimately for the bankers, and by building customer relationship, banks are already moving a step closer to curb fraud.

FREMONT, CA: Fraud has become very persuasive in the digital era, and it to be found everywhere. According to the latest report, global fraud loss costs businesses 1.5 trillion USD per year which is approximately as much as the entire GDP of a developed country; every dollar lost to fraud costs businesses 2.5 times than that. The sole reason is that the cost of fraud isn’t limited to the loss itself. The visible costs such as fines and costs associated with remediation, labor, and technology have increased. Organizations nowadays have increased rules and laws to tackle fraud. Regulators regularly issue the latest guidance on appropriate fraud regulations such as Know Your Customer (KYC) and anti-money laundering (AML) laws.

Efficiently, frauds can be stopped is during the onboarding method, which is the starting point for building customer relationship. It is the most crucial touchpoint for protecting the business from fraud and for establishing a stellar customer experience. Every financial enterprise spends significant sums yearly on KYC, AML, and consumer onboarding. Employees still manually accomplish many of the steps in customer due diligence, which results in onboarding taking a more extended time. If employees lack the skills required to detect fraud, then the process is more prone to error. Firms that use intelligent automation to transform the client experience to accelerate onboarding and avoid human error and compliance risk.

A user, when applying for a loan, has to undergo several processes. The banks must comply with KYC and AML requirements during the approval process. To deliver a more satisfying client experience, the method needs to be as seamless and straightforward as possible. After all, the identification process has been cleared, the integrity of the banks grow, compliance improves, and the risk of fraud reduces.

Software robots help the bank assent to regulations faster and without error, acting as a team of digital workers. Companies that work towards a better tomorrow strengthen trust while saving time, money and supplies by applying intelligent automation to mitigate fraud, avoid fines, cut the expense of compliance and create valuable relationships with customers, partners, and employees.