An interesting report of Money Mobility Tracker®, a PYMNTS and Ingo Money collaboration, presents a survey that shows that customers of financial institutions (FI) expect both maximum money mobility and fraud protection. The faster money moves, the greater the risk of fraud but consumers typically resist fraud prevention measures, mainly when those safeguards seems to be inconvenient.
More than half of U.K. consumers would jump ship from their banks and switch to another provider if the bank was found to be involved in money laundering, according to a study by global analytics software provider FICO.
These findings indicated that this type of scandal could be disastrous for an FI and lead to a mass defection of customers. Customers evidently expect banks to protect them, but 20% of 25 to 34-year old said banks are not fair when fraudsters manage to wrong their customers. Meanwhile, 15% of U.K. consumers who own a credit or debit card said they believe current attempts by banks to deal with credit or debit fraud are also unfair to consumers.
Balancing security with seamlessness is a challenge, but fraud detection technology allows FIs to identify fraud through passive verification, enabling money mobility that is both safe and seamless. Preventing fraud while ensuring money mobility can be daunting, and the complex modern risk landscape makes it even more challenging. But FIs are working hard to fight fraudsters while both educating consumers and ensuring their experiences remain friction-free.