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TRANSACTIONS, DISPUTES & THE POWER OF AUTOMATION

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Gabe McGloin, Head of Business Development EMEA at Verifi

 

Everyone wants the transaction to happen

Online payments are evolving toward ensuring every card-not-present (CNP) transaction is a dependable, secure, and seamless experience for the customer. And rightly so, as e-commerce retail sales rose by over 32% in 2020.1 Just to authorise and authenticate a cardholder’s purchase requires data retrieval from many sources, and with all the data matching happening in microseconds, the transaction needs to proceed to completion quickly. It’s understood that for e-commerce transactions, if there is too much friction at checkout, there is a possibility of cart abandonment.

 

Why disputes deserve the same attention

No less vital to ensuring swift online transactions is the right for the customer to dispute a transaction. Disputes are the safeguard that ensures customers can be compensated for fraudulent transactions, damaged goods, or any errors made in transacting. Unfortunately, disputes, and the entire post-transaction experience, have been largely bypassed by automation – until recently.

Gabe McGloin

Customers are making it known when they don’t receive the post-transaction services that they expect. If a customer can’t obtain clarity on a transaction they don’t recall, they’ll might file a dispute. If they return goods and don’t see a refund in a timely manner, they might file a dispute. And, with the increase in e-commerce transactions over recent years1, it has become more apparent than ever that we need to remove dispute friction from the post-transaction environment.

To make a meaningful reduction in disputes will require increased attention to the customer’s post-transaction experience. This means implementing automation and increased data transparency at key points along the dispute life cycle, starting with the first customer inquiry. The antiquated retrieval request which can take 2-6 days is obviously not the answer. When a customer wants to clarify information concerning a transaction, it should be at least as quick and easy as making the initial transaction. This is completely attainable with the right infrastructure in place.

 

Automation, data transparency, and disputes

Say a customer calls their issuer seeking clarity for an unrecognised CNP transaction on their billing statement. Using the transaction identification from the statement, the issuer can request business and receipt-level data directly from the seller’s customer relationship management (CRM) system. This detailed data can cover seller information such as address, phone number, items purchased, purchase date, along with additional transaction data points. This information can be retrieved in near real-time, while the call centre agent is on the phone with the customer. Just to put this in perspective, up to 25% of calls to the issuer are to seek clarity of unrecognised transactions,2 and issuers commonly don’t have the level of detailed information to remedy the situation.

Other reasons for a customer “clarity call” include simple forgetfulness, an unacknowledged purchase from a shared family card, or first-party fraud (disputing a transaction the customer knows is valid). In each case, issuer and seller collaboration can afford the automation and data transparency to quickly and decisively prevent an unwarranted dispute from proceeding. This provides the expected customer experience, as well as the best outcome for the seller and issuer.

Now, consider a customer calls their issuer to file a dispute. Historically, that meant the seller would not even know about the dispute until it was past the point of no return, and well on its way to becoming a chargeback. More recently, through data transparency and issuer and seller collaboration, issuers have been able to alert sellers of a dispute in flight with a 24-hour to 3-day window to issue a credit resolution or allow it to escalate. But these types of solutions still requires the seller to expend hands-on operational time, in case review and credit issuance, should the case warrant it.

Now, with current technology, issuers can process the dispute through a simple, logic-driven decision engine populated with seller-defined rules and parameters. This process can enact a decision, with credit in process, in less than one second – again, all while on the phone with the customer. The outcome is an improved customer experience that also removes the operational time and expense of a manual review or a dispute representment for both the seller and issuer.

 

Keep an eye on customer experience

We are right on the verge of having automation, data transparency, and issuer and seller collaboration align throughout critical points in the payment life cycle, at the point where it’s needed the most – the post-transaction stage. Customer confidence and satisfaction are essential to promote the health of payments, both pre- and post-transaction. These recent developments clearly indicate that it will take a new level of collaboration and innovation to reduce disputes in the post-transaction environment.

Keep these innovations in mind to protect your business – and keep an eye on your customer’s experience, for the benefit of all transaction stakeholders and the entire payments ecosystem.

 

1 US Ecommerce Forecast 2021 – Insider Intelligence, July 2021

2Improving the Dispute Experience – Aite, May 2020

Technology

AI-Powered Fraud Prevention for Digital Transactions

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By Martin Rehak, CEO of Resistant AI

Fraud is on the rise, thanks to the rapid escalation of digital channels in response to the unprecedented challenges created by COVID-19. However, this rapid shift to digital-first operations and transactions has come at a price for banks and financial services organisations.  Which is why financial services organisations are increasingly turning to AI to intelligently address an ever-evolving and ever-smarter attack landscape.

If nothing else, COVID-19 helped shine a spotlight on the vulnerabilities of today’s digital and mobile customer platforms that are capable of executing rapid and instant payment transactions, leaving little time to undertake customer authentication or transaction verification. Similarly, the difficulties of Know Your Customer (KYC) and customer onboarding in the digital era is exposing financial services organisations – and the customers they serve – to a significantly increased risk of cyber-crime and financial fraud.

According to a recent UK Finance report, £754 million was stolen from bank customers in 2021 as scammers industrialised the use of authorised push payment fraud to trick individuals and businesses into sending money to bank accounts operated by criminals posing as genuine customers.

The challenge created by automation

The rapid expansion and automation of financial services to minimise friction for customers has created new challenges with regard to verification and risk management policies and practices. Evaluating if a digital interaction is authentic now depends on referencing a huge amount of data from multiple sources – everything from geolocation and session behaviours to data from merchants, bureaus, and customer profiles.

Added to which, today’s financial fraudsters are becoming expert at targeting these complex digital environments and are using innovations such as block chain and instant payments against banks and their customers.

Staying ahead of criminals is an imperative. Especially as directives like Open Banking open up third party access to customer data that further heightens the vulnerability of finance firms to fraudulent activities if this process is not appropriately monitored and managed.

Financial organisations spend vast amounts of money protecting their information and IT, yet the automated processes that deliver access to money are often the least protected. Traditional approaches to fraud prevention that rely primarily on human intervention have proved inadequate for preventing the activities of today’s sophisticated digital criminals, who are capable of exploiting vulnerable automated systems at scale.

In response, the finance sector needs to enable real-time identity forensics that brings together state-of-the-art document and customer behaviour evaluation to uncover synthetic identities, account takeover attempts, money laundering and other emerging types of fraud plaguing financial services.

Strengthening onboarding and KYC processes

Attaining a deep understanding of the end-to-end customer journey is now mission critical for combating fraud and financial crime. Onboarding and KYC represent key cornerstones in the mission to prevent scams. However, the shift to digital documents for ID authentication, combined with the relaxation of onboarding verification to expedite customer conversions during the crisis, have created significant opportunities for fraud.

In the onboarding process, identify validation is the first step to affirm an applicant actually exists. Next comes verification, which links that person to the information they provided in the validation stage. In many automated workflows there are risks from forged or manipulated documents that support the customer journey in online lending, trading, insurance, financing, factoring and payments.

Typically, 17% of bank statements used for lending applications or KYC purposes have been tampered with and 11% of UK payslips submitted as part of digital loan applications have been altered or are forged. Similarly, 15% of company registration certificates submitted worldwide when opening a bank account are fakes and 9% of utility bills submitted as proof of address are forged.

By protecting automated processes that use unauthorised documents from third parties, institutions can gain certainty that all digital documents are genuine. Similarly, continually assessing transactions will instantly alert teams to potentially fraudulent activities. These anomalies encompass behavioural, device characteristics, unusual switching between accounts and more.

Providing an intelligent shield for automated financial systems, AI powered fraud prevention delivers a convenient customer onboarding experience while limiting the generation of false alarms – ensuring that fraud and cyber analysts need only investigate genuine priority alerts.

Advanced fraud insights

Today’s AI-powered real-time identity forensics are capable of detecting advanced fraud and manipulation and are adept at joining the dots to uncover previously unidentified vulnerabilities and gaps in third-party systems, so that future potential exploitations can be deterred.

With financial criminals continuing to up their game, banks and finance organisations are leveraging AI technologies to strengthen the validation, verification and transactional processes that deliver enhanced security without compromising the customer journey or experience. With the right financial automation oversight technology in place, they’re better positioned to predict, detect and deter criminal adversaries and stay one step ahead of evolving new risks on the horizon.

 

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SMART WEARABLES IN HEALTH TECHNOLOGY

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Gavin Bashar, UK managing director at Tunstall Healthcare, discusses smart wearables in health and social care, the benefits, and what the future holds.

For many years, technology has been integrated into every sector in the economy, from banking to shopping, to enhance the experience of customers.

However, health and social care services have fallen behind in terms of technology adoption and innovation, for reasons including fragmented structures, limited resources, and reluctance to change.

Yet person-centred technology has the power to transform lives, not only enabling the ongoing delivery of support services to vulnerable people, but reshaping the health and social care sector as a whole.

Technology-enabled health and care is the service of the future and the ongoing and unprecedented rapid acceleration in the adoption of care and health technology has demonstrated the numerous benefits in practice.

 

Why wearable technology?

Wearable technology enriches the lives of a range of cohorts, including people living with long term conditions such as dementia, and connects vulnerable individuals to key stakeholders such as clinicians and family members.

The better application of technology and wearable devices can deliver significant benefits including improved patient outcomes and service-user experiences, a reduction in the strain on staff and carers, and potential cost savings or avoidance.

Wearable devices and the systems they’re linked to use wireless and digital technology to enable support services to be efficient, flexible, responsive, and tailored to the individual. The unobtrusive devices also ensure that care delivery is discreet and won’t interrupt the daily life of service users.

Proactive healthcare is also easier thanks to wearable technology. Service users become much more engaged with their own health and have greater opportunity to develop a proactive approach to their health monitoring, rather than reacting. Technology can be used to enable intervention at an early stage by identifying irregularities before they become more significant health or care issues which require expensive care and treatment.

There is significant evidence that wearable technology offers users greater choice in terms of the care they receive and prevents incidents in the first place, by recognising an emergency as soon as it occurs. Community alarms and telecare services in particular are effective methods of signposting to clinicians and additional services when a user requires care, and this has been particularly important during the pandemic.

 

Wearables in a home and residential care setting

When providers are presented with unique opportunities to drive the adoption of digital health solutions such as wearables, there must be a focus on designing holistic services which fit seamlessly into the user’s life, work with clinical practices, and ensure any data that is collected is stored securely.

There is a huge range of wearable technology and devices available which perform a number of functions and can therefore be tailored to suit the needs of an individual and their stakeholders, such as carers and clinicians.

Small, discreet pendants available on the market can raise alarm calls in emergencies, and protect users living independently at home or in group living environments. Features can include integrated alarm buttons, LEDs for visual reassurance that a button has been pressed, easy to wear options, and auto low battery monitoring and alerts.

Falls are the main reason that older people are taken to hospital and unaddressed fall hazards in the home are estimated to cost the NHS over £430 million1. Smart wearables use advanced technology to allow users to raise an alarm from anywhere in their home or care setting if they are in difficulty. Some devices can also automatically raise an alert if a fall is detected.

This technology offers confidence to individuals who are at risk of falling, such as people with limited mobility, the elderly, and people with long-term conditions such as epilepsy, diabetes and Parkinson’s disease.

Wearable technology not only benefits vulnerable individuals living at home, but also those in residential care settings and their carers. Nurse call systems which are integrated with smart wearables can be personalised to ensure individual safety with minimal disruption to other care home residents. It also respects dignity while improving management insights, workflow efficiencies, staff morale, and care quality.

Devices can also be worn which protect users when away from home, automatically detecting falls, offering an SOS function and providing the user’s location.

 

The benefits of managed technology and smart wearables

Technology can require equipment from a range of manufacturers. Identifying, purchasing and managing devices from multiple sources can prove challenging and resource intensive for local authority community alarm centres.

Nottinghamshire County Council (NCC) has a managed healthcare service which includes home units, telecare sensors and wearable devices which are all tailored to the needs of individual service users.

All connections are monitored and referrals are made to the NCC Responder team, nominated contacts or the emergency services, as appropriate. NCC also has Reablement Assessment flats with telecare in place to support people leaving hospital, helping them to increase wellbeing and regain skills to enable them to return home.

Between October 2019 and December 2020, significant benefits and improved outcomes have been observed. Over 280 cases where a high and immediate risk of admission to residential care were avoided, and over 650 cases which required additional community care costs were avoided.

In total, savings of over £2.2 million have been achieved after additional service costs, costs of homecare for people diverted from residential care, and loss of client contributions have been deducted.

 

The next generation of wearable technology

The deployment of smart technology, including wearable devices, enables vulnerable people to live safely and independently for as long as possible. However as demands change, the care journey is now evolving rapidly and healthcare services must adapt accordingly.

We’re beginning to see the next generation of predictive care technology and smart wearable devices, and over the next few years this will encompass integration that enables diverse and scalable models of health and social care. Using AI and taking data-driven insight from multiple sources, providers will use this next generation of solutions to optimise Population Health Management programmes by providing personalised and anticipatory care.

Smart wearables in health and social care are designed to improve quality of life and empower individuals to take control of their health, while supporting the NHS and additional stakeholders by reducing the number of required GP visits, ambulance callouts, hospital admissions, and demand for local authority funded residential care

For more information on how wearable technology can support the ongoing delivery of proactive and effective support, please visit www.tunstall.co.uk

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