A Millennial Fraud Dilemma: Can You Put Humpty-Dumpty Back Together Again?

A Millennial Fraud Dilemma: Can You Put Humpty-Dumpty Back Together Again?

A Millennial Fraud Dilemma: Can You Put Humpty-Dumpty Back Together Again?

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Scott Andrick

As a 30-year financial services industry veteran, Scott leads product development and marketing for retail banking and consumer payment applications at Pegasystems.

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With all the kings' horses and all the kings' men focused on fraud detection, have banks lost sight of the whole customer experience? Don't get me wrong, I'm a big proponent of fraud detection technology. However, once the usual payment mechanism is broken due to fraud, a bank has a singular 'moment of truth,' to ensure that customers remain satisfied and loyal. Isn't urgently returning the customer to their prior spending patterns as important as preventing the fraud?

By way of example, my son's debit card was recently compromised. His bank detected an "out-of-pattern" charge and contacted him immediately. Only one fraud charge made it through before they closed the account, which the bank reversed, and he was made 'whole.' He was shocked it happened (and I had to unfortunately assure him it is too common), but relieved his checking account hadn't been drained.

However, that was where the great news stopped.

Preparing for millennials

As a young working millennial with only one debit card, he had no access to funds without going into a branch for cash. After five days, he called only to find out the bank hadn’t actually sent a replacement card. When it still hadn’t arrived days later, he called again and was told that he should have it "any day now." Upon asking to speak to a manager, my son was told he would get a call back in one to three days. Humpty-Dumpty was broken, and this bank was unable to put him back together again. (And while you think this is an isolated event, here is the viral 2015 story of a UK customer who cross-stitched his own replacement card.)

Those of us who are more 'seasoned' than my son might nod their heads with a knowing smile because we understand embossing, the U.S. Postal Service, etc. However, this single incident illustrates to me that our industry may still not be prepared for the generation of customers who will sustain us over the next few decades. These digital natives were the first generation to grow up with the internet and are connected 24x7 with their smart phones.

Tom McBride, one of the authors of the annual Mindset List, calls them the "Right Now Generation," as they can't remember waiting for anything in their lives. The 2016 list of 60 observations provides entertaining insight into a youthful perspective that likely differs vastly from your own. Waiting for more than 10 days for a card is more than just difficult or frustrating; it's unacceptable in a world where millennials track their pizza and Amazon orders in real time. Don't kid yourself that they aren't holding financial services institutions to the same standard and won't turn your bank into the next viral social media meme. Just think back to the Comcast customer service call recording in 2014 or the top-10 viral video "United Breaks Guitars."

Moving to frictionless interactions

The multiple systems, disparate processes and traditional training models for customer service representatives (CSRs) broke down in my son's case. The journey isn't over until the customer has a piece of plastic in his or her hands and can use the account as before. Otherwise, your card gets moved to the back of the wallet or is shelved altogether.

The good news is there are ways to retain and recapture a customer's attention after fraud, but the focus needs to be on creating frictionless interactions. Both the right technology and processes must be in place to ensure optimal end-to-end customer experiences. Otherwise, customers will feel stranded, like my son was, with no immediate access to his account and believing the bank didn't care.

According to a recent Pegasystems survey, nearly one in four consumers would start looking for a new bank if they received poor customer service, and one-third indicate customer service is the most important factor when considering switching institutions. It's critical to set your CSRs up for success so they can answer a concerned customer's questions while offering them insight into the fraud-resolution process.

Achieving this type of personalization and insight requires more than typical training manuals or knowledge management software. A staggering number of back-office operations are still manual or paper-based with hand-offs and inefficiencies throughout the process. I see this regularly on operational walk-throughs. Banks still manually initiate processes and route work multiple times, with context lost in the shuffle, further delaying resolution and causing hiccups along the way – such as my son's replacement debit card.

That's why it's so important banks have digital, end-to-end processes with strong case management technology controlling all stages, automating as much as possible to expedite resolution. It must also be omnichannel, connecting self-service or agent-assisted channels with back-office operations to ensure that all parties – banks and customers alike – have access to relevant information at every step. As a result, employees are more productive and CSRs can deliver more satisfying customer engagement, while customers have transparent, personalized experiences during the post-fraud detection resolution process.

Ultimately, a customer's experience doesn't end with 'the detection' – it's about the entire life cycle and making the customer feel whole again. Every point of engagement with customers puts the bank's relationship with the customer to the ultimate test. By taking a holistic approach to fixing these pain points, banks can achieve something truly transformational. You can put Humpty-Dumpty back together again.

The statements and opinions of the writer do not necessarily reflect those of TSYS.

Other Articles by Scott

Scott Andrick

As a 30-year financial services industry veteran, Scott leads product development and marketing for retail banking and consumer payment applications at Pegasystems. Prior to Pega, Scott held management roles in bank operations covering the contact center, fraud and desktop technology development. Scott delivers unique insights from his diverse experience in Professional Services, Sales and Marketing as an accomplished writer, speaker and consultant on topics such as Next-Best-Action marketing, omnichannel customer experience strategies, bridging the front-to-back office service "chasm," and consolidated claims for consumer payments.

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