Biometric solutions can provide significant benefits to FIs (financial institutions), including operational efficiency gains and related budget reductions, CX improvements, and fraud loss reductions. Many FIs routinely use knowledge-based authentication (KBA) questions to help authenticate their returning customers, but many legitimate customers cannot answer the questions correctly, while fraudsters can usually answer them correctly due to all the breached data available to them. If the fraudster cannot pass authentication the first time, he or she will just keep trying—unlike a legitimate customer.
The Biometric Win-Win: Reduce Fraud and OpEx While Improving CX by Aite Group discusses how using a versatile biometric solution enables eliminating or vastly reducing the use of time-consuming KBA questions. Particularly in the contact center, this can trim seconds or minutes from the average handling time, resulting in savings of millions of dollars annually in very large organizations. This cost savings alone can typically result in a solution paying for itself quickly, compared to many fraud solutions.
Biometrics can also help better authenticate the legitimate customer and identify impostors, thereby reducing the number of account takeover successes. In turn, this will reduce the fraud losses associated with account takeover crimes.
Whatever is implemented, customers want their interaction to move quickly, easily and at their convenience – and biometrics satisfy that desire. Fortunately, serving customers quickly not only leads to a better CX but also improves operational efficiency, significantly cutting costs for the FI.
To improve fraud prevention efforts, most FIs now prefer a vendor that can provide them with a robust solution that meets multiple needs across all delivery channels. For example, a provider that can enable the use of voice, facial and behavioral biometrics enables greater flexibility and more options across delivery channels than a provider that offers only one type of biometrics. A robust solution can support more than one biometric feature that the FI can use, as needed, for authenticating customers. It can also incorporate additional capabilities that can be used as needs arise.
Aite Group’s The Biometric Win-Win: Reduce Fraud and OpEx While Improving CX provides a great overview of the topics above, along with useful business case components that can be leveraged by readers. Seventy-one per cent of financial fraud professionals agree their FI needs to make significant technology investments to catch up with the pace of fraud. You’re not alone, so take the next steps toward the use of biometrics and start reaping the rewards sooner than later.