“If there’s one thing that’s certain in business, it’s uncertainty.” – Stephen Covey
This statement is currently very applicable to financial institutions, who are having to manage business within an increasingly volatile ecosystem.
A timely example is the war in Ukraine, which has led to a range of banking sanctions: frozen assets, suspended export licences, and deposit limits to name a few. Financial Crime Organisations (FCOs) have capitalised on this instability by increasing their activity. Couple this with unprecedented inflation and a possible recession looming, and the current marketplace becomes more challenging than ever.
On top of this, many banks are challenged to combat fraud and manage disruption, being held back by legacy systems and manual processes. In addition, because issues can come from various sources which are generally managed by different resources utilizing multiple platforms, delays, duplicative cases, and frustration among customers, associates, management, and regulators are far too frequent.
To help organisations navigate this increasingly hazy financial space, ServiceNow provides a resilient, automated, and—crucially—flexible platform. With it, organisations can conquer the risks presented by FCOs; after all, if you’re fortifying against an attack then your defences must be coordinated.
Outdated solutions for modern challenges
In addition to the unpredictability of events like the Ukraine war, FCOs can take advantage of another area that is more potent than ever: Cyber Fraud.
Customer preferences have shifted towards online services, even more so after the COVID-19 pandemic. But as more transactions become digitised, more opportunities are made available for online fraud. The financial crime market is expected to grow by $26 billion in the next four years, with this digital norm being a key driver.
Many banks are struggling to defend themselves against these new FCO groups because—aside from the current regulatory environment in US and EMEA markets—the more disconnected software they buy, the more disparate and error-prone their systems may become.
In search of a solution, banks are looking to simplify their legacy platforms and rethink the value of having multiple single-use point solutions in place, which currently do little to help institutions manage these events in mass. To do this, banks need the ability to inject their IT platforms with AI and predictive analytics to provide more effective and secure services, while also carefully managing costs.
A unified system to combat ever- changing threats
Despite the challenges and opportunities that IT rationalisation provides, organisations can be hesitant to invest. Between sunk costs from existing legacy point software solutions and concerns that system change could create increased risks, many institutions stick with what they know—even if it’s far from perfect.
But as institutions realise that a modernised IT platform offers the resources to efficiently deal with complaints, disputes, and frauds holistically, they become more willing to make the jump and invest in a unified capability, that streamlines their operations and tightens their security. It also happens to significantly reduce their Total Cost of Ownership (TCO).
Customers are also better off. By giving them real-time updates and linking channels together to coordinate issues with multiple teams, financial institutions can provide personalised experiences, reduce fraud, and increase loyalty.
In short, fewer losses and better experiences can help generate greater loyalty.
Equipped with a unified, AI-powered platform that automates customer-facing processes and manages the impact of cyber fraud, financial institutions can evolve and minimise risks from FCOs.
Thinking to the future: Customer escalations and fraud
Providing powerful customer experiences is fundamental to the long-term survivability of a financial institution. If a customer has an issue, being there to help and making them feel valued will go a long way in earning their trust and loyalty.
You can see how this applies to banking and the growing number of problems customers are facing in the industry for instance like transaction disputes, service complaints, fraud—the list goes on. But what can banks do to turn despair into devotion?
By linking channels together, providing real-time updates tailored to the customer’s preferred communication channel, and streamlining systems for faster threat responses, financial institutions can give customers personalised experiences and increase loyalty.
ServiceNow has a customer-focused solution called Customer Escalations and Fraud, which delivers the above solutions to financial institutions. This means happier and more loyal customers, a more coordinated operations capability that includes an improved ESAT (Employee Satisfaction), and a lower TCO, all of which translates to more business in the long run.
How to secure your organisation without compromising security
Having spoken about the current state of digital transformation, the question arises: where do we go from here?
In preparing for the uncertainty of the future, you may benefit from three core pieces of advice:
To learn how to better position your institution to manage complaints, financial risks, and fraud, visit our content hub for more resources.
To find out more about modernising your IT infrastructure, visit our Financial Services Operations page.