Connect with us

Business

THE VALUE OF THE CREDIT TEAM IN HELPING TO PREVENT FRAUD

Published

on

Raymon van Viegen, CFO at Visma | Onguard

While bad debt can lead to a range of issues for organisations, unique vulnerabilities can plague certain industries, such as in the case of those that provide machinery, vehicles and other costly assets that can consequently go missing. PwC’s Global Economic Crime and Fraud Survey 2020 discovered a total of $42bn in fraud losses reported by businesses over the course of the previous 24 months. The fraud threat is real and continuing to grow.

For businesses to be fully prepared for the threat, awareness of the two main types of risk to businesses is crucial. The first is the case of fraudsters who are posing as existing organisations in order to complete transactions with genuine businesses, and the second is the scenario of fake companies being created by criminals. It’s a risk that can pose a serious threat to businesses from numerous angles, and financial departments and credit control teams are increasingly living in fear of inadvertently facilitating a way in for bad actors.

 

Defence first

The screening process with a potential new client is a vital first step to identifying a bad actor and their intentions. Sales teams can also play a role in advising in the case of a red flag or suspicious piece of information that doesn’t seem legitimate. Analysing bank statements, VAT numbers and registrations with a chamber of commerce is a good starting point and can reveal any data that may appear suspect.

An order value being unusually high or an order address from an unusual country are some key signs that an experienced credit manager can notice early on. Carrying out this due diligence at an early stage is even more important as non-refundable methods of transaction become more popular, such as bank transfer as opposed to PayPal or credit card payments.

Human error or oversight is always a potential possibility, so employing appropriate technology to help under-pressure teams can provide some much-needed support to the screening process. Many current platforms don’t provide the assistance that credit managers need to analyse the data to detect for fraud. Tools such as Excel and legacy ERP systems often lack the ability to connect data internal points or integrate with real-time data from credit reference agencies and therefore are unable to provide the crucial end-to-end overview that could help the credit team decide whether to accept a new customer. Without this real-time connected insight, credit teams will find it much harder to provide an agile line of defence against evolving fraud techniques.

 

The role of RPA and intelligent automation

Integrating data into applications such as robotic process automation (RPA) and intelligent automation (IA) can empower the skill set of a credit professional and enhance their experience. This is where external risk management agencies such as Dun & Bradstreet or Aon come into play with specialised datasets utilising API. For example, systems enhanced with RPA could play a key role in automatically verifying whether a potential customer that fills in a form on a business’s website is who they claim to be. The same applies for addresses, as systems could be connected to cross reference against agencies such as Companies House. Intelligent automation and RPA tools can help decipher whether the address is actually in the location claimed by the potential customer, while also being able to flag blacklisted accounts and fake businesses that have attempted to fraud companies previously.

Utilising the appropriate technologies provides both the opportunity for the credit team to identify bad actors and speed up the process of screening a potential customer. In turn, whilst this speeds up the weeding out of fraudsters, it also enables the processing of a greater number of genuine transactions, benefiting the business doubly.

 

The fraud threat in 2021

Pre-pandemic, a face-to-face meeting with a client in a physical location would have often been all that was needed to complete the screening process, but the remote working era of the previous year has made it infinitely more difficult to check a potential deal’s validity. Now more than ever, fraudsters are posing as employees of fake businesses on social media platforms and video conferencing to trick other businesses. It’s therefore vital in the modern age for assistive technology to be used to identify bad actors, and will remain so as numerous industries adopt a future flexible-working model and fewer transactions are made in-person.

Empowered by technology, credit teams and managers can play a key role in defending their business against evolving fraud threats. RPA and intelligent automation can compliment their competencies and enhance their role, rather than replacing them. The future of fraud is an uncertain landscape for credit teams, but utilising the right technologies can inform their decisions and protect their organisation from bad debt.

 

Business

OUTSOURCING YOUR IT SOLUTIONS CAN SAVE YOU FROM COSTLY DOWNTIME

Published

on

Cloud Services

Amir Hashmi, CEO and Founder of leading IT and Cloud services provider Zsah, discusses why you need full-time professionals if you want to avoid the money pits of IT downtime

 

A lot of wealthy business owners will uphold the following infamous statement – time is money. Many CEOs believe that it should be at the heart of your business strategy. They aren’t wrong, and it is no different when it comes to IT. Therefore, it is high-time that businesses consider the real risks and costs associated with IT downtime, and do all they can to avoid it

In the midst of a post-pandemic technological revolution, it’s now more important than ever to carefully consider who manages your technology. It is essentially the motor that drives productivity, efficiency and growth, and if therefore, if there isn’t a thorough and dedicated system in place, businesses risk system failure, which can risk everything.

Something so essential to a company deserves to be taken more seriously than just to deploy the services of an IT help desk when there’s a significant issue. The answer isn’t necessarily to consider ways in which you can fix a problem once it arises, but instead to ponder upon ways of preventing an issue from occurring in the first place. This is what leads us to managed IT support services: your personal, dedicated team of IT experts that not only fix issues when they occur, but that also constantly improve the software and hardware so there is less chance they ever take place.

 

The real cost of downtime

Whenever your IT isn’t functioning at its full capability, you are losing money. Even the shortest of gaps in service can severely impact the customers’ experience, your reputation, and the output and efficiency of your entire staff.

In 2017, ITIC sent out an independent survey to measure downtime costs. It found that 98% of organisations say that a single hour of downtime costs over USD $100,000, with 81% putting the figure at over $300,000. For 33% of businesses, 60 minutes of downtime would cost their firms between $1 million and £5 million.

Figures from Statista.com reveal 24% of organisations worldwide reporting average hourly downtime costs amounting to between USD 301,000 and USD 400,000, with 14% reporting greater than USD 5 million in costs.

Elsewhere, IHS Markit surveyed 400 companies and found downtime was costing them a collective USD 700 billion per year – 78% of which was from lost employee productivity during outages.

 

Managed IT solutions are the key

Though we may never know the full cost of downtime, it is evident that it costs individuals and businesses a large amount of money. Don’t wait until your next emergency to remedy a problem; get the professionals in now to prepare for the future, rather than just fix problems in the present.

When you work with a managed technology services provider, your network and infrastructure are supervised 24 hours a day, all year round. As with any IT service, this means that issues will be fixed – however the real advantage is more long-term. As technology service providers perform regular proactive upkeep, there will be a reduced chance of suffering from issues in the first instance, and when (or if) they do occur, it will be far simpler to recover data thanks to full cloud integration.

Continue Reading

Banking

HOW TRADITIONAL INSURERS CAN USE TECHNOLOGY TO IMPROVE THEIR RELATIONSHIP WITH CUSTOMERS

Published

on

The customer experience with insurance is anomalous, in that one is only required to engage with their insurer if things are going wrong for them. To add value to the relationship, new technology and methods should be adopted, in turn driving loyalty and business growth, writes Oliver Werneyer, CEO and Co-founder of Imburse

Oliver Werneyer

Insurance is one of the oldest industries in the world and it is still, to this day, considered a grudge purchase. Looking back, insurance has a history of having a challenging relationship with its customers. According to an IBM study, in 2008, only 39% of consumers trusted the insurance industry. This percentage has stayed largely similar over the years, having reached only 42% in 2020. For any business with growth ambitions, good customer relationships are crucial.

I believe that now more than ever, the insurance industry not only needs to continue investing in improving relationships with customers, but to really think about new ways of doing so. At a basic level, the moment of truth for an insurance customer is when either they need to pay or are getting paid. Insurers can have the best policy wording, quick claims processes, apps and advisors, but if the experience to pay premiums or to receive a claim is bad, the customer immediately loses trust.

The pandemic has exposed this tenuous relationship between insurers and its customers. The need to move everything online and provide personalised services has exposed significant shortcomings in the service insurers provide. The industry has been too slow to adopt newer technologies and move engagements closer to the customer (self-service and empowered). This is largely due to the legacy systems and processes that insurers failed to modernise over previous years.

This means that the better-positioned incumbents have stronger customer relationships and benefit disproportionately from the pandemic, as they are able to win more new customers and convert customers from other insurers. They also benefit from significantly lower customer acquisition costs and much better growth, as illustrated in this McKinsey report. Even new entrants or InsurTechs are benefitting massively by focusing on improved customer experience and customer relationships.

However, it is never too late for insurers to build better relationships with customers. The main way to build a good relationship with a client is to make life easier, live up to promises and add value through the relationship with them. By working on these key elements, insurers can start building strong relationships with their customers, and, through the right partners, deliver this in a timely and non-disruptive manner.

 

Embedded Services

Insurance products often get a bad reputation because they cost money, but the benefits might only come much later, or never. Customers don’t get to experience a positive relationship with insurance products, either because they never claim and feel like they lost out, or they claim and they’re in a bad situation. By either embedding other services into the insurance experience to deliver a more transactional engagement, or embedding insurance products into general customer experiences such as online shopping or rewards, insurers can enrich customer relationships to generate value.

This way, insurers become a value-adding part of the customers’ everyday activities and not just a product that they have to pay for and may never get anything back from. One example is to embed micro-savings capabilities, often found in banking, into pension savings and insurance products. This can allow customers to save more for pension, attract younger customers and build a portfolio of fiscally disciplined customers.

 

Tailored journeys and personalisation

Customers have come to expect personalised journeys and engagements from product providers. Streaming services, social media, e-commerce or mobility services have shaped the customer expectations. Now, customers are also expecting personalisation for insurers.

Insurers need to invest very heavily in delivering personalisation and customisation to customers as they engage with their products. Failure to deliver this puts renewed strain on the value perceived by the customer and their relationship with the insurer. This applies not only to customer interfaces, but to aspects such as payments. Insurers should make it easy and pleasant for customers to pay and get paid. As the main moment of truth, payment experiences need to work optimally.

 

Perceived customer value metrics and delivery

The value customers derive from insurance products is, generally, monetary. Therefore, insurers must invest in product enhancement to increase its perceived value. Perceived value is not tied to a monetary value. By being able to choose between multiple payment options, such as a $300 pay-out to a bank account or a $320 Amazon voucher, the customer has a higher perceived value of the payment. This can be achieved by leveraging non-insurance products that can be purchased at a discounted price, exclusive access that the customer would otherwise not have or conversion into a form that is more useful to the customer.

Payments, for collection and pay-out, are at the core of delivering this value. An excellent payment experience immediately influences the customer to be positively inclined toward a product (PwC report). In order to offer this, insurers need to leverage multiple technologies and providers, offer any speed of transaction in any market, and deliver faster automation and better risk control. The key is to transform insurance products into transactional value-adds to customers’ lives and use this opportunity to continuously build on relationships with customers.

The main roadblock for insurers is still the operational implications of these activities and the costs that arise. In looking to build a better customer relationship, insurers need to look at partners that are operational enablers to deliver this. Partners that can solve the integration and speed-to-market problem so that insurers are enabled to deliver new capabilities, not bombard them with new ideas and no path to delivery.

Imburse, for instance, enables insurers to access all the global payment providers and technologies available in any market. Through a single connection, insurers can deploy any payment capability into any channel, for collection and pay-outs, without ever again needing to build a direct operational integration to the providers. This gives them full freedom to leverage payments as a key value driver and customer experience enhancer.

Building a better relationship with insurance customers is key for the insurance industry to close the protection gap. Incumbents are in the prime position to look at Insurtech and Fintech partners to rapidly and significantly modernise, digitalise and transform their own capabilities to deliver major enhanced value to their customers.

Imburse is an advanced universal payment connector that enables businesses to gain cost-effective access to complete global payments technology, regardless of the service provider. To learn more, please visit www.imbursepayments.com.

Continue Reading

Magazine

Trending

Cloud Services Cloud Services
Business4 days ago

OUTSOURCING YOUR IT SOLUTIONS CAN SAVE YOU FROM COSTLY DOWNTIME

Amir Hashmi, CEO and Founder of leading IT and Cloud services provider Zsah, discusses why you need full-time professionals if...

Banking5 days ago

HOW TRADITIONAL INSURERS CAN USE TECHNOLOGY TO IMPROVE THEIR RELATIONSHIP WITH CUSTOMERS

The customer experience with insurance is anomalous, in that one is only required to engage with their insurer if things...

Business6 days ago

THE FUTURE OF CLOUD: HOW TO KEEP YOUR DATA SAFE

By Pete Braithwaite, COO of KIT Online Cloud services are inherently scalable, responsive and flexible. They offer huge flexibility –...

Business1 week ago

ETRADING SOFTWARE AND ARTIS HOLDINGS LOANS ELECTRONIC PLATFORM OPEN FOR BUSINESS

The Bids Wanted in Competition (BWIC) process completes on the WIC trading platform   Etrading Software, the independent, global provider...

Finance1 week ago

AIRBANK SELECTS YAPILY TO BUILD A FINANCIAL MANAGEMENT SOLUTION FOR SMBS

Airbank, a financial management solution for European startups and SMBs, has selected open banking infrastructure provider Yapily to help its...

Interviews1 week ago

COULD YOU PROVIDE US WITH SOME BACKGROUND ON YOUR CURRENT ROLE WITHIN THE FINANCIAL SERVICES SECTOR?

– Shanker Ramamurthy, Global Managing Partner – Banking at IBM, BIAN Executive Board Member   I lead the banking consulting...

Business1 week ago

IT COST MANAGEMENT: 10 STEPS BUSINESSES CAN’T IGNORE

By Matt Dando, Director, Strategic Business Value Consulting at Serviceware   In today’s ever-accelerating digital era, and as we recover...

Banking1 week ago

UNCHARTED TERRITORY: HOW OPEN BANKING CAN HELP BANKS NAVIGATE COVID CHALLENGES

Opinion from Rafa Plantier, Head of UK and Ireland at Tink The last year has propelled banks, businesses and consumers...

Finance1 week ago

AI AND HOW IT’S LEADING THE FIGHT AGAINST FRAUD IN THE FINANCIAL SECTOR

Geoff Clark, Managing Director, Aerospike EMEA Much like many other sectors financial institutions have accelerated their digital transformation projects since...

Banking1 week ago

HOW DIGITAL IS MAKING THE ‘IMPOSSIBLE’ POSSIBLE FOR FINANCIAL FIRMS

  By Lavanya Kaul, Head of Customer Success, BFSI, UK&I, LTI Article synopsis: Focused on the digital transformation of the...

News1 week ago

DANSKE BANK TO BRING DOMESTIC SCHEME, DANKORT, TO APPLE PAY

Danske Bank, Denmark’s leading bank, supported by Nets, will bring Dankort to Apple Pay Dankort is the preferred means of payment...

News1 week ago

TACKLING THE FORGOTTEN PLASTIC PANDEMIC: CLIMATE CHANGE

By Mark Taylor, Group CCO, Waterlogic   Last year the COVID-19 pandemic was, quite rightfully, at the forefront of all...

News1 week ago

CROWN AGENTS BANK ACCELERATES GLOBAL GROWTH AND EXPANDS INTO NEW MARKETS WITH MULESOFT

MuleSoft, provider of the world’s #1 integration and API platform, today announced that Crown Agents Bank (https://www.crownagentsbank.com)  is using MuleSoft to digitally...

Finance1 week ago

THE IMPORTANCE OF ACCURATE AND TRUSTED TIMESTAMPING IN FINANCIAL SERVICES

Richard Hoptroff, CTO, Hoptroff   Recent global financial regulations such as MiFID II require that all stock exchanges, credit institutions,...

Business1 week ago

HOW OPEN DATA CAN HELP FIGHT CLIMATE CHANGE

David Lais, Co-Founder and CPO at Ecolytiq – providing banks and financial institutions with the digital infrastructure for green finance....

Business1 week ago

NOW’S THE TIME FOR THE INFRASTRUCTURE SECTOR TO GET IR35 RIGHT

Matt Fryer, Head of Legal Services at Brookson Legal   The Government’s recently announced £650bn programme of infrastructure works is...

Business2 weeks ago

MAKING THE MOST OF RPA TO ENHANCE THE CUSTOMER EXPERIENCE

Standfirst: Capturing and analysing business processes should be a prerequisite for any implementation of robotic process automation, argues Dr Gero...

Banking2 weeks ago

FINTECHS AND BANKING POST-COVID

COVID-19 has forced businesses and society to adapt to new realities. From big-name Wall Street banks to up-and-coming financial technology...

Technology2 weeks ago

WHY AGILE TECHNOLOGY PLATFORMS ARE THE KEY TO EFFECTIVE INNOVATION

Sujit Unni,CTO, Paysafe   A main reason why platform technology can prove to be so effective for a business is...

News2 weeks ago

DIGITAL TOKEN IDENTIFIER REGISTRATION OPENS WITH ETRADING SOFTWARE

Top 100 cryptocurrencies can now be tracked authoritatively using new ISO standard   Etrading Software, through its non-profit division the...

Trending