The expectations of banking customers have changed a lot in the last 5-10 years.

Customers have come to expect 24/7 mobile and online banking services that are feature-rich and easy-to-use. To keep pace, we see financial institutions offering robust streamlined functionality like remote deposit capture. A PWC report notes, “Banks are striving to differentiate their products and services, develop a deeper understanding of customer needs, and build customer relationships—at a price that is competitive but leaves room for profit.”

It is estimated that by 2020, one in four checking accounts will be opened on mobile devices. Despite this shift, many financial institutions are still reluctant to fully embrace and invest in mobile account opening. New functionality cannot be provided at the expense of customer experience. In a digital era, when the average Facebook user has 330+ friends who can read about a bad banking experience in an instant, a good customer experience is extremely important.

Many issues can contribute to a bad customer experience:

  • Limited functionality across devices
  • Poor user interface in an app
  • Excessive security challenges

Security will always be a high priority, and regulated concern, for financial institutions. Fraud issues like account takeover, false chargebacks and identity theft need to be addressed without creating friction for valued customers. It costs six to seven times more to acquire a new customer than retain an existing one—which is why creating an outstanding, safe and frictionless customer experience is so important.

Financial institutions need fraud prevention services that can protect online and mobile transactions whether they are web-based, or come through a native or hybrid app. It’s important to note, that from a device perspective, the characteristics that can be collected from a mobile device, like a smartphone, will differ from those of a laptop or PC. Using a software development kit (SDK) that integrates fraud protection directly into an app provides more data capture capabilities for risk assessment.

The key is striking the right balance during progressive authentication, utilizing as many pinpointed behind-the-scenes tools as possible to confidently identify the customer and assess risk. This allows financial institutions to concentrate manual review efforts on just the riskiest transactions, and effectively protect themselves and their customers—all while minimizing impact to the customer experience.

Want to read more about online and mobile fraud? Download our whitepaper: How to Stop Online and Mobile Banking Fraud