Banks Archives - Business Intelligence Info

Tag Archives: Banks

Successful Banks Save Money by Bringing Marketing and Sales Together

September 28, 2020 CRM News and Info

When your sales team and your marketing team operate independently, managing leads and customers will be slower and cost more. CRM systems are no longer just for retail or business verticals, banks have the same need to manage customers. Implementing a CRM system for the banking industry is critical to serving your customers at every point in the sales process.

Your bank will save money by giving both marketing and sales a complete snapshot of each customer in a single view so they can spend less time gathering data and more time finding new customers and strengthening existing relationships.

Microsoft Dynamics 365 Customer Engagement helps bring sales and marketing together and saves resources by:

Reducing costs and keeping your teams connected with unified data.
Prioritizing the most promising high-revenue leads and streamlining complex sign up processes.
Automating routine tasks, thus giving sales team members more time to spend with clients.
Responding quickly to customer needs with automated request routing.

Microsoft Dynamics 365 can increase your efficiency and improve your customer relations.

Improve efficiency with a holistic view of your customers

Unify data from all your departments to attain a single comprehensive view of each customer with Dynamics 365 Customer Insights. Create rich customer profiles and define segments.
Export the segments to Dynamics 365 Marketing and execute targeted campaigns.
Leverage artificial intelligence (AI) to boost your target segments and scoring models to prioritize sales-ready leads.

Generate leads across channels to grow opportunities

With Microsoft Dynamics 365 Marketing, you can send out multichannel personalized campaigns to appeal to your customers and prospects.
Align your marketing and sales team using shared information and processes to manage leads and events.

Prioritize and nurture your best leads.

Use custom or out-of-box templates for your promotional emails, emergency communications, and newsletters.
A/B testing functionality lets you try different email variations and choose the ones that best fit your target audience. Use AI to determine the optimal time for sending emails.

Improve response time with Lead Management

As the global workforce pivots to virtual and digital models, the necessity arises for new modes of working and improved relationship management.
With Microsoft Dynamics 365 Sales, you can unify your relationship data across CRM (Customer Relationship Management) systems, social networks such as LinkedIn, and productivity tools to generate insights. Knowing your customers increases your credibility and relationships with them.
Empower your employees with guided processes allowing them to respond to customers more effectively.

Foster collaboration with Opportunity Management

With Dynamics 365 Sales, your entire team has access to the information they need via their preferred application, such as Microsoft Outlook, Dynamics 365, or Teams.
Today’s sales processes require collaboration between departments. By improving meetings, communication, and ways to share data, Microsoft Teams facilitates collaboration among your sales team.
Dynamics 365 Sales enables smart selling with actionable insights and contextual AI. Better intelligence allows you to formulate better strategies.

Build relationships that add value

Microsoft Dynamics 365 Sales integrates with LinkedIn Sales Navigator to give your team embedded inline access to company and personnel details.
Microsoft Dynamics 365 Sales and Marketing is built on the same powerful platform that your employees who work with Office 365 will find familiar. Nurture demand, personalize buyer experiences, build relationships, and make insight-driven decisions to drive more qualified leads and increase revenue.

Modern banking is a customer-driven world. If your bank can understand and serve the needs of your individual customers better than the competition, you will succeed. If you are still using antiquated systems to keep track of your accounts, other banks will take your place.

Crowe CRM for Banking

A Customer Relationship Management solution built for the banking industry will help you manage customers and better understand their needs in order to provide the right solutions, quickly.

Crowe CRM for Banking powered by Microsoft Dynamics 365 empowers bank staff with the tools and information needed to efficiently deliver high-quality, personalized service – for all interactions across all channels. It gives managers and team members the information they need to be effective.

Crowe CRM for Banking on Microsoft AppSource

For more information, contact us at crminfo@crowe.com.

By Ryan Plourde, Crowe, Microsoft Dynamics 365 Gold Partner, www.crowecrm.com

Let’s block ads! (Why?)

CRM Software Blog | Dynamics 365

How Banks and Lenders Can Grow Business By Knowing Customers in the Age of Social Distancing

August 13, 2020 Microsoft Dynamics CRM

In this time of social distancing and working remotely, the technology you choose and use to stay close and up to date with your customers is more important than ever.

How do you get a complete view of your customers when you can’t meet with them in person? Having a full-function CRM (Customer Relationship Management) solution such as Microsoft Dynamics 365/CRM and learning to use its versatile tools will go a long way toward seeing you through the present crisis and setting you up for success in the future.

Identify risks, spot opportunities

Even when you can’t meet with clients or prospective clients in person, you need to be able to identify potential portfolio risks before they become a liability; the sooner, the better. You need to be able to increase the efficiency of your operations, so you can promote your business while delivering exceptional customer service.

You can’t fully evaluate your risks without a thorough understanding of the background and needs of your clients. If you know the business and geographic location of a borrower, you’re more likely to understand why they might be struggling right now and when their situation might normalize. But for another customer with a different business in a different location, the same set of data might indicate a significant underlying problem.

Strategically investing in technology that improves automation, customer relationship management, BI, and machine learning can help you assess the financial health of your client base and help your team deliver more personalized service.

A comprehensive, personalized picture of borrowers is possible when lending institutions not only collect but know how to leverage the data. Customer preferences, history, and behaviors paint an individualized view of each customer and make it easily accessible in a centralized location.

The future of banking is now

The right technology solution will also support your various admin and analytical tasks associated with better serving your customers. When these technologies are connected and integrated into one system, you’ll not only get a complete picture; you’ll know what to do with the information and what next steps to take.

The future of banking is online, digital, and mobile. The right technologies can help you mitigate risk by giving you a better understanding of your borrowers, enhance your customer relationships, and help you plot a realistic course for your future.

Download “5 Ways Banks Overcome Strategic Challenges with Microsoft Dynamics 365.”

Meet your biggest challenges in banking with deep insight and support

If you’d like a better, more useful view of your customers to improve service and advance your business, contact our experts at Crowe and ask how Microsoft Dynamics 365 and Crowe CRM for Banking can bring you to the next level.

Contact our team to start the discussion at crminfo@crowe.com or 877-600-2253

By Ryan Plourde, Crowe, a Microsoft Dynamics 365 Gold Partner www.CroweCRM.com

Let’s block ads! (Why?)

CRM Software Blog | Dynamics 365

How Banks Can Incite Employees to Track Referrals in the New CRM System

October 25, 2019 Microsoft Dynamics CRM

A CRM system is only valuable if it used.

It doesn’t matter which system you selected, or how much money you spent; if the information it contains is not updated, current, and trustworthy, it will do you no good. In fact, it can actually cause more harm than having no system at all. And if the information is there, but nobody looks at it, that also has no benefit.

There must be something management can do to motivate employees to use the new system. Sometimes a carrot works better than a stick, and sometimes the two are interchangeable.

The stick would be that if you don’t enter the information, you don’t get credit for the work you did. Credit needs to be given only if employees are utilizing the tool. If your employees are neglecting to enter updates into your CRM system, there must be some motivator to change their behavior: the carrot.

Incentives

You have to provide an incentive for your employees. Make a policy that will be either part of their job performance revue or have a company-wide or bank-wide incentive campaign.

For example, the people, or the branch, that have the most completed profiles will get some reward. Once the behavior is a pattern, it’s easier to sustain. Or give $ 25.00 every time there is a qualified referral. Then if an account is opened, money goes into a pool of credit for their branch because they sent a good referral that actually led to new business.

Accountability

Some banks tie the information entered into CRM to a referral bonus. If the employee does not put the referral into the CRM system, they do not get credit for it. That credit is a monetary referral payment (carrot!). They may make some insurance or investment referrals. And if they haven’t put those into the CRM system, at the end of the month if an account was opened, they won’t be credited for the referral. That directly affects their pocket.

Updating your CRM It is also a security measure because clients may move to other branches. Putting the referral into the CRM system is a way for your employee to claim it as theirs. Even if an account is opened at a different branch the original rep can say, “Nope, here are the notes, with timestamp in CRM, showing that I have been working with that customer for months.”

Which Banker Gets Credit?

Here’s a scenario that happened recently at one bank where one of the bankers was working on an investment relationship for a client. She knew the mother had sold her house, and there was going to be investable dollars coming in. She had referred her to the investment department a year earlier, but the person she referred her to worked the lead but just didn’t feel like it was going anywhere, so she marked it as “lost lead” in CRM. However, the notes remained in the CRM system.

When the customer came back to the bank, she now had the cash, and she sat and waited for the banker who happened to be out sick that day. So she left intending to come back another day. Instead, on her way home, she stopped at a different branch just to throw the check into her account. The teller at that bank did a good job saying, “Hey, this is a lot of money, are you sure you don’t want to do something more with this?” The customer said, “Well, actually I do.” So, that teller referred her to someone at that branch. This interaction was also recorded in the CRM system. But now there was this conflict: who had referred the lead?

The teller didn’t do anything wrong. The client didn’t say to the teller that she was already working with somebody else. The teller did what she was trained to do, and we don’t want to punish her now.

Because of the notes in the CRM system, the credit was split to create a fair outcome for everyone who had put work into this client.

This happens all the time; a client walks into a different branch, the bankers think they own the client. But the client thinks the bankers are all one big family, so it doesn’t matter who referred them.

Close the Loop

Even when referrals are entered, the loop still needs to be closed when the deal is done.

Some banks run a monthly report that shows closed investment relationships based off of referrals from the branch. And unless it’s in the CRM system they don’t get the credit. So, somebody in a position of a “data steward” is tasked to make sure the branches get their credit, and that the advisors have “flipped the switch” in the CRM system to confirm that the referral has become a relationship.

Before the end of the month they have to go in and turn the referral into an open account, pulling it from their active pipeline to their production pipeline. Then the report is run, and the dollars can be verified.

Crowe CRM for Banking

Crowe works with 1,800 financial services organizations across the country, including more than two-thirds of the top 100 U.S. banks. With Crowe CRM for Banking powered by Microsoft Dynamics 365, you can get a true 360-degree view of the customer – with a single view into all communications, interactions, operations, and relationships.

Key features:

Activity management: Quickly capture call notes and schedule follow-up activities for efficient and timely follow-up. Efficient activity management increases revenue opportunity, accelerates lead conversion rates, and allows a proactive approach to customer communication.

Lead management: Automate your lead management and sales qualification process in one central location. Convert incoming leads from email messages and use-guided dialogues to streamline the qualification process.

Network management: Leverage built-in LinkedIn and other social media integrations to build network connections, drive new referral leads, and create leads and contacts in your CRM software without retyping.

Best of all, Crowe CRM for Banking has a familiar, easy-to-use interface, with familiar tools, such as Microsoft Outlook, Excel, and Word, easing user adoption and lowering the cost of learning. Remember, the most effective system is the one that your team will use.

For more information about Crowe CRM for Banking, contact us at +1 877 600 2253 or visit www.crowecrm.com

By Ryan Plourde, Crowe, Microsoft Dynamics Gold Partner, www.crowe.com/crm

Let’s block ads! (Why?)

CRM Software Blog | Dynamics 365

How the Right CRM System Helps Banks Identify Star Employees

October 9, 2019 Microsoft Dynamics CRM

How good are your team members at referring customers to other services offered by your bank to expand your “share of wallet”?

With the right CRM system, you can run activity reports based on employees. You can see how many referrals they have attempted to make, if the prospects were qualified or not, and if the referral resulted in additional revenue to the bank. This can be especially helpful during an employee’s annual review.

A low score on these activities can highlight the need for additional training or an updated incentive plan. It can also spotlight those few employees who are performing far above the others.

For example, if your bank has one hundred tellers, there may be five that really stand out as doing more than the others. You can single them out for commendation, give them additional responsibility, or promote them to a higher position.

The same analysis can be used for all departments. Is the sales team cross-referring to other departments? Are the commercial lenders sending anything into investments and back to the bank? You can easily see who are the givers and not just the takers.

The Right CRM System for Banking

A well-defined and executed customer relationship management (CRM) strategy with Microsoft Dynamics 365 at its center can help banks focus on imperatives such as increased customer acquisition, better customer engagement, and improved efficiency and revenue.

Crowe works with 1,800 financial services organizations across the country, including more than two-thirds of the top 100 U.S. banks.

Crowe CRM for Banking, built on Microsoft Dynamics 365, empowers bank staff with the tools and information needed to efficiently deliver high-quality, personalized service – for all interactions, across all channels. It gives managers and team members the information they need to be effective.

For more information about Crowe CRM for Banking, contact us at +1 877 600 2253 or crminfo@crowe.com.

Download the eBook: 5 Ways Banks Overcome Strategic Challenges with Microsoft Dynamics 365

By Ryan Plourde, Crowe, Microsoft Dynamics 365 Gold Partner, www.crowecrm.com

Let’s block ads! (Why?)

CRM Software Blog | Dynamics 365

How Fintechs Are Taking Traditional Banks By Siege

September 5, 2019 BI News and Info

In 1903, United Kingdom Member of Parliament (MP) Mr. Scott-Montague said, “I do not believe the introduction of motor-cars will ever affect the riding of horses.” We all know how that panned out.

The initial reactions of banks toward fintechs were similar.

According to Accenture, today’s fintechs, big techs, and other challengers have gained one-third of new revenue at the expense of traditional banks. And according to KPMG’s Pulse of Fintech 2018 report, total investment activity in fintech, including venture capital, private equity, and mergers and acquisitions, increased from around $ 19 billion in 2013 to about $ 112 billion in 2018.

This data indicates that interest in fintechs – and the threat from them – is real and current. If the threat is neglected for too long, Bill Gates’ ominous 1993 statement – “Banking is necessary, banks are not” – could come true.

The constraints of traditional banks

Banks have their own strengths, including being in the business for centuries and having associations with and access to customers and their data. But they are hamstrung by legacy systems, stifling regulations, and an inability to explore the true potential of emerging technologies due to lack of expertise and cultural inertia regarding change.

For the same reasons, banks are plagued with inefficient delivery systems, which leads to huge cost and associated dissatisfaction of customers. Their inability – and to some extent unwillingness – to explore emerging technologies has resulted in lack of innovation. Accordingly, they lag fintechs in coming up with new products and services, capturing new customers, and creating new markets and customer bases.

Fintechs: Modus operandi and strengths

Disentangle the web of core functions of financial services
Use emerging technologies to address inefficiencies of each core function
Use innovation to improve products and services at low cost and lure customers away from banks
Keep the customer experience at the center of all strategies

Unlike traditional players, fintechs are unencumbered by most government regulations and legacy infrastructure, which helps them keep their processes agile, lean, and efficient. They are better at leveraging emerging technologies to create innovative products, services, and ways to interact with customers, and consequently provide a delightful experience. The result? Customers are moving away from traditional players and toward challengers.

Fintechs also keep their customers at the core of all their strategies and incorporate emerging technologies into their culture.

To offer a loan, for example, traditional banks require lenders to provide documents such as salary paystubs, bank account details, credit histories, etc. In contrast, startups such as Branch International use analytics based on digital footprints to process loans. This approach enables them to tap into an entirely new market of customers, including those who may have been unable to access credit from banks due to lack of documents.

Similarly, M-Pesa makes use of mobile technology to help people deposit and transfer money by simple SMS or message. This spares customers the hassle of visiting a bank branch, opening an account, and performing transactions.

Similarly, Clover Health uses customers’ data to predict and prevent emergencies and improve the health of both the insured and the insurers. Meanwhile, Kabbage provides automated lending to small businesses, and Apttus uses AI to ease the sales contract process.

Using a customer-centric approach and emerging technologies, fintechs are able to improve internal processes, offer financial services to unbanked and underbanked customers, and provide customers with an entirely new financial service experience.

From confrontation to collaboration

However, not all is rosy for fintechs and thorny for banks. Even as fintechs continue to make inroads, banks are starting to wake up and protect their turf. And fintechs are facing their own challenges, including funding, scaling up, and accessing customers.

Confrontation is costly, so traditional banks and fintechs are starting to form alliances: Banks, for example, offer budgets and customer access and data, while fintechs bring culture, drive, ideas, and tech savvy. This type of collaboration is a win-win, helping banks acquire new technologies and create new products, solutions, and services while fintechs benefit from access to customer data, which they can use to improve their products and provide better services.

Banks are also pursuing collaborations with integrated platform providers, which help them implement emerging technologies to improve legacy infrastructure and ultimately offer new products, solutions, and services. They are also helping them transition smoothly from legacy systems to new infrastructures. Such partnerships are helping traditionally technology-averse financial service organizations become technology-enabled intelligent enterprises.

If traditional banks and fintechs continue to collaborate, they can build an ecosystem of intelligent enterprises with improved infrastructures, and offer customers better products, services, and solutions. That would turn the siege into a friendship that would benefit everyone.

For more on tech innovation in the banking industry, see “Biting The Hand That Feeds.”

Let’s block ads! (Why?)

Digitalist Magazine

KBTG Banks on TIBCO® Data Virtualization to Deliver Digital Lifestyle Banking

August 25, 2019 TIBCO Spotfire

In an era where our lifestyles are becoming more digital, KBTG is striving to be the digital bank of the future. A subsidiary of Thailand-based K Bank, KBTG provides 16 million retail banking customers with flexible and agile services. With the growth of digital banking, it needed to find a much faster way to provide data for internal teams enabling mobile banking apps. KBTG’s goal is to compete with non-banking companies that offer more choices for digital banking to fit customer lifestyles.

To solve this problem, KBTG turned to TIBCO® Data Virtualization software to improve its data delivery. The bank now leads the charge for digital lifestyle banking, where customers can perform all banking activities on a mobile device. With the implementation of TIBCO® Data Virtualization, KBTG can handle up to 10 million transactions per day, with the data virtualization layer pulling from 20-30 downstream systems and 12-15 data sources.

And the results speak for themselves; with a data virtualization layer, KBTG has seen the following benefits:

Provided stability for higher performance apps, better maintenance and support, and flexibility
Saved time and effort of physically moving data into a single source and a format that customers can easily understand
Drew data from various sources and published in a variety of formats within weeks, and delivered them in a standardized format within a single layer

Learn more about how KBTG used TIBCO® Data Virtualization software to create a stable data platform enabling high performing internal IT and mobile services to fulfill its goal.

Let’s block ads! (Why?)

The TIBCO Blog

GoCardless banks on NetSuite to support international expansion

July 11, 2019 NetSuite

NetSuite Helps Innovative UK Fintech Company Enhance Financial Operations and Reshape Global Payments Industry

LONDON, UK—July 11, 2019—GoCardless, a global direct debit network headquartered in the UK, has selected Oracle NetSuite to support its mission to take the pain out of getting paid for businesses with recurring revenue. With NetSuite, the fintech company, which grew by 60 percent in the last year, has been able to automate financial management and help reduce the complexities of operating across multiple markets, currencies and tax laws as it rapidly expands its international operations.

Founded in 2012, GoCardless has created a global bank debit network to rival credit and debit cards, as well as a platform designed to take invoice, subscription, membership and instalment payments. As demand for its services grows, with $ 10 billion in transactions a year and 40,000 customers around the world, GoCardless needed a single, scalable business platform that could provide the visibility and control required to optimise its financial reporting. After a careful evaluation, GoCardless selected NetSuite to manage and automate core business processes.

pr 2017highlights team GoCardless banks on NetSuite to support international expansion

“Since implementing NetSuite, we have gone from basic accounting to conducting in-depth financial analysis,” said Catherine Birkett, CFO, GoCardless. “We can now report financial close faster and more accurately, quickly and easily setup new subsidiaries, and efficiently meet our stakeholders’ reporting requirements. This is incredibly valuable as we continue to expand into new markets and the best part about NetSuite is we now have a solution that will scale with our growth path for years to come.”

With NetSuite, GoCardless will be able to increase the agility of its financial operations as it expands globally. By gaining a unified view into the business, GoCardless will be better enabled to address the complexity it faces with entering new international markets and make decisions more confidently and quickly.

“GoCardless has a very advanced business model that is changing the way organizations collect payments,” said Nicky Tozer, VP of EMEA, Oracle NetSuite. “As its network expands to cover North America, Australia and more than 30 European countries, GoCardless needed a single and scalable business platform that could support its future growth and that’s why it selected NetSuite.”

About GoCardless
GoCardless is a global leader in recurring payments. GoCardless’ global payments network and technology platform take the pain out of getting paid for businesses with recurring revenue. More than 40,000 businesses worldwide, from multinational corporations to SMBs, transact through GoCardless each month, and the business processes $ 10bn of payments each year. GoCardless now has five offices: UK, France, Australia, Germany and USA.

About Oracle NetSuite
For more than 20 years, Oracle NetSuite has helped organizations grow, scale and adapt to change. NetSuite provides a suite of cloud-based applications, which includes financials / Enterprise Resource Planning (ERP), HR, professional services automation and omnichannel commerce, used by more than 18,000 customers in 203 countries and dependent territories.

For more information, please visit http://www.netsuite.com.

Follow NetSuite’s Cloud blog, Facebook page and @NetSuite Twitter handle for real-time updates.

About Oracle
The Oracle Cloud offers complete SaaS application suites for ERP, HCM and CX, plus best-in-class database Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) from data centers throughout the Americas, Europe and Asia. For more information about Oracle (NYSE:ORCL), please visit us at oracle.com.

Trademarks
Oracle and Java are registered trademarks of Oracle and/or its affiliates.

Safe Harbor
The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Let’s block ads! (Why?)

NetSuite's Latest Press Coverage

How Banks Can Help During US Federal Furlough

January 23, 2019 FICO

The longest government shutdown in US history is also a historic opportunity for banks, fintechs and bank challengers to show they’re serious about helping customers.

Financial industry collection organizations should follow the lead of the Department of Veterans Affairs, which is offering veterans with debt to the VA a suspension of collection activity for up to 90 days. FIs can make an even more flexible range of options available to their customers employed by the federal government. And while the proportion of federal employees in a company’s portfolio may be small, the press coverage around the shutdown makes this a disproportionately large opportunity to get the message across—to all current and prospective customers—that the bank is committed to helping them maintain good credit and capable of doing it in a timely and flexible manner.

Many furloughed customers could benefit, for example, from a temporary payment holiday along with a freeze on interest charges and any fees associated with the account. Others, especially those in two-income households, might prefer the option of changing a current payment plan to align with the payroll schedule of a second earner. Still others may want to continue with their current payment schedule, and banks can provide an incentive to make this option attractive.

Identifying the affected customers and reaching out to them with appropriate offers via email, SMS or mobile app is not a time-consuming labor-intensive project. The process—including assessing the impact on the FI’s own finances—is simple and fast. Banks using modern debt management software can do it in a day.

Who’s going to be among the first to act?

Let’s block ads! (Why?)

FICO

3 Things Banks Can Do to Tackle Push Payment Fraud

October 10, 2018 FICO

In August, the UK’s Financial Ombudsman joined the debate on authorised push payment fraud. They argue that banks are not taking enough responsibility for this kind of fraud and say banks should not take the default position that their customer has been negligent. This follows the announcement by the Payment Services Regulator that they intend to require banks to compensate their customers in some cases – the consultation paper on their proposal is due out soon.

The pressure for banks to tackle push payment fraud is mounting – and even if liability isn’t transferred wholesale to the banks, the scope for bad publicity and loss of reputation is significant.

While industry bodies look to redress the balance between bank and customer, it must be remembered that the banks are victims as well. Clever fraudsters have a wide variety of increasingly sophisticated techniques and technology to help them commit these crimes. They have access to a real-time payments scheme which means they can access the proceeds of their crimes and quickly remove them out of the reach of law-enforcement.

Banks are not powerless to tackle the issue. In addition to the measures suggested by regulators and industry bodies, here are three areas they can focus on:

1. Transaction Risk Analysis

For many years card issuers have deployed real-time transaction risk analysis for credit and debit cards. There is a wealth of functionality available to them through solutions such as the FICO Falcon Fraud Platform. This same technology can be effectively deployed to assess the risks inherent in push payments. While some banks already use transaction risk analysis for push payments, to be truly effective in stopping this fraud they must:

Work in real-time. Customers expect payments they have initiated using UK Faster Payments to be fast if not instant! Deploying fraud analysis that slows the process is likely to be unacceptable to customers and won’t stop fraud in a real-time payments system.
Apply risk analysis to payments leaving accounts AND to payments arriving into accounts. While it is intuitive to analyse payments as they are initiated it may in fact be equally or even more important to apply the same scrutiny to in-bound payments. Victims of push payment fraud have looked to the receiving bank for recompense, this is particularly the case when the fraudster has opened an account using a stolen or synthetic identity. The argument is that the banks KYC processes were at fault when the account was opened. The proceeds of push payment fraud may also be channelled through multiple mule accounts and spotting this behaviour not only stops fraud but also helps the bank to meet their anti-money laundering compliance obligations.
Have access to the right mix of technologies – Fraud constantly evolves, this means that systems to stop it must also be agile. It is no good looking for a single ‘silver bullet’ to stop fraud. Instead you need adaptive technologies that can be layered to produce the best possible outcomes. For example if dealing with a new scenario where historical data cannot inform your fraud models then unsupervised machine learning technology that can self-learn becomes more important – when data and insight is available then accuracy will be increased by using trained models.

2. Standardised Reporting

It is generally true that if you’re not measuring then you will struggle to improve. Even if you are improving without consistent and regular reporting methodologies how will you know?

Reporting authorised push payment fraud was given additional impetus when UK Finance included rates in their 2017 report for the first time. The European Banking Authority has also tackled reporting for authorised push payment fraud in their PSD2 Fraud Reporting Guidelines. They lay out a framework for the consistent and mandatory reporting of fraud and include the reporting of fraud that involves ‘manipulation of the payer,’ in other words authorised push payment fraud. To stay ahead of the fraud and satisfy the regulator, banks must focus on how they report this fraud as a matter of urgency.

3. Mutual Authentication

A significant proportion of authorised push payment fraud happens when fraudsters trick their victims into believing that they are their bank. The techniques used are sophisticated and include spoofing of emails and SMS messages so that they look genuine – even to the wary.

As the Financial Ombudsman notes, it is not possible to lay the blame on customer negligence in such cases. The protocols by which customers authenticate themselves to their banking providers are established and consistency will be enforced through regulation such as PSD2. The protocols that banks use to authenticate themselves to their customers are by contrast inconsistent and poorly understood. This allows fraudsters to get their foot in the door and commit their crimes.

It is not an easy nut to crack, but the proliferation of these kinds of fraud means that it must be addressed. While an effective, industry-wide approach may be the best way forward, in its absence Individual banks can still act. They should look to provide consistency in their outbound customer communications and have standard and well-understood procedures by which they prove who they are.

Once they have policies in place to address how they authenticate themselves to customers, it is vital to educate their customers about it and apply it consistently. It is not just the fraud department’s responsibility – unsolicited sales calls to customers that proceed to ask the customers for security information must not happen unless the bank has first reliably proved who they are to the customer.

The pressure to tackle Authorised Push Payment fraud is coming from industry bodies, consumer advocates, regulators and customers. Banks that can tackle it will have a competitive advantage; those that don’t there will be continued bad press, loss of reputation and increased scrutiny from the regulator.

Let’s block ads! (Why?)

FICO

Why Big Banks Are Turning To Robotic Process Automation

October 5, 2018 BI News and Info

At BNY Mellon, profits have been growing, thanks to the bank’s launch of robot-driven pilot projects to automate processes. In 2016, the bank adopted robotic process automation (RPA), which integrates web robots to increase efficiency and accuracy while reducing risk and costs.

Web robots are basically software applications that are designed to run automated tasks. Machine learning is predicted to become an increasing trend across many industries, including the financial sector. At BNY Mellon, an RPA team is actively working with business leaders, while a transformation team identifies locations to use web robots.

According to BNY Mellon, bots have streamlined trade settlement by performing research on orders, resolving discrepancies, and clearing trades. Web robots, for example, are able to reconcile a failed trade in just a quarter of a second, while these tasks take human workers up to ten minutes. Doug Shulman, senior executive vice president and global head of client service delivery at BNY Mellon, stated in American Banker magazine,“If you think about smart automation, robotics is a piece, workflow is a piece, and we’re combining smart forms, optical character recognition, workflow and robotics to get momentum around automating tasks.”

Today, it’s clear that automation is already significantly impacting asset management areas and all other industries across the board. According to the International Federation of Robotics (IFR), at a global level, automation adoption is accelerating, driven by increased global competitiveness and the need to boost productivity and quality while expanding production lines. Although automation could be a threat to some jobs, the IFR argues robots have the ability improve the quality of work by taking over dangerous, dirty, and tedious jobs that are not possible or safe for humans to perform.

BNY Mellon’s efforts to transition staff members to more cost-effective venues by turning to robotics and automation have resulted in huge sustained cost savings and increased productivity. The projects have created better accuracy and faster processing, reducing transaction time and eliminating manual steps. This enables the organization to redeploy resources to activities that create greater value for its clients.

Despite BNY Mellon’s success, limitations remain. When improving operational efficiency, leaders should be able to:

Maximize value from existing outsourced operations.
Avoid costly investment in technology transformation while achieving planned objectives.
Support business growth, processes, products, and innovations within the business model without high-cost technologies.

Big banks can leverage automated robotics and machine learning tools to eliminate “non-value-added work” and increase efficiency through automated workflows.

Automation and digitization have the potential to free human workers from mundane and repetitive tasks and focus on industry knowledge and expertise to create greater value.

For more on emerging technology in the financial industry, see Pinpointing The Value Of Intelligent Banking.

Let’s block ads! (Why?)

Digitalist Magazine

Tag Archives: Banks

Successful Banks Save Money by Bringing Marketing and Sales Together

How Banks Can Incite Employees to Track Referrals in the New CRM System

How the Right CRM System Helps Banks Identify Star Employees

How Fintechs Are Taking Traditional Banks By Siege

The constraints of traditional banks

Fintechs: Modus operandi and strengths

From confrontation to collaboration

KBTG Banks on TIBCO® Data Virtualization to Deliver Digital Lifestyle Banking

GoCardless banks on NetSuite to support international expansion

How Banks Can Help During US Federal Furlough

3 Things Banks Can Do to Tackle Push Payment Fraud

1. Transaction Risk Analysis

2. Standardised Reporting

3. Mutual Authentication

Why Big Banks Are Turning To Robotic Process Automation

Recent Posts

Categories

Archives