The payments industry self-regulatory body Australian Payments Network (AusPayNet) today urged Christmas shoppers and retailers against complacency as the latest industry data shows a decline in card fraud.
Data for the 12 months to 30 June 2019 (FY19) showed that in the face of a 4.2% boost in total card spending to $799.4 billion, overall card fraud dropped by 6.9% to $527.8 million.
The drop continues the trend of declining card fraud rates identified in the data for 2018 released in August 2019.
According to the FY19 data, card-not-present (CNP) fraud dropped by 5.0% on the previous FY to $455.5 million as the industry has adopted secure technologies such as tokenization, EMV 3-D Secure, real time monitoring and machine learning.
CNP fraud occurs when valid card details are stolen and used to make purchases or other payments without the card, typically online, and in FY19 accounted for 86.3% of all fraud on Australian cards.
Australians are not liable for fraud on their cards and will be reimbursed as long as they take due care.
Fraud involving lost or stolen cards fell by 16.1% to $43.0 million in FY19 and counterfeit/skimming fraud fell by 19.2% to $18.6 million, the latter extending a consistent trend since chip technology was progressively rolled-out in the card system over the last decade.
AusPayNet CEO Andy White said that while the reduction in fraud was encouraging, there was no room for shoppers to be complacent as the peak Christmas retail season heated up.
“Fraud involving CNP transactions remains by far the largest category of fraud. Ecommerce volumes have grown rapidly, and this space has attracted criminal groups as security technology makes other types of card fraud less attractive,” Mr. White said.
Today’s data covers the period ending immediately before 1 July 2019, when the industry’s key initiative to counter online fraud, the CNP Fraud Mitigation Framework, took effect.
“Our Framework is a whole-of-industry approach that brings together stakeholders to reduce the space available for CNP fraudsters. We look forward to tracking the impact of this initiative in coming years,” Mr. White said.
The CNP Fraud Mitigation Framework is the result of extensive collaboration across the e-commerce community including card issuers, retailers, merchant acquirers, card schemes, payment gateways, payment service providers, regulators and industry bodies. Key elements include targets for card issuers to reduce CNP fraud, and increased use of multi-factor authentication, including biometrics, in verifying CNP transactions.
“But that’s no reason to be complacent – fraud protection needs to happen at every level and it’s important that online shoppers also take steps over this busy Christmas period,” Mr. White said.
“Only provide your card details on secure and trusted websites. Look for the locked padlock icon and be wary of offers that look to good to be true – fraudsters count on shoppers being less careful during busy periods,” he said.
“Malware and phishing attacks are becoming increasingly sophisticated, so treat unsolicited emails and text messages from people you don’t know with suspicion. Don’t click on the link provided and don’t be tricked into divulging confidential data such as your password.”
Other steps online shoppers can take include:
- Regularly checking statements and reporting any unusual transactions to their financial institution immediately
- Registering for, and using their financial institution’s online fraud prevention solutions, whenever prompted
- Doing checks to make sure the business is legitimate
- Always keeping PC security software up-to-date and doing a full scan often
Best Banking Technology Overhaul Africa 2020,Best Banking Technology Overhaul LatAm 2020, and Fastest Growing Payment Solution Provider Europe 2020
Global Banking and Finance Review is pleased to announce BPC as the 2020 Global Banking & Finance Awards® winner for Best Banking Technology Overhaul Africa 2020,Best Banking Technology Overhaul LatAm 2020, and Fastest Growing Payment Solution Provider Europe 2020
Global Banking and Finance Review has awarded BPC in recognition for its banking and payments technology leadership,growth,and innovation. “BPC is redefining banking and payments. They are focused on developing innovative technology solutions that make banking and payments more efficient, cost-effective, and readily accessible. Their attention to what is most needed in local markets, as well as their ability to adapt their services, marks BPC as an exceptional organization. Their continued investment in technology, strategic vision, and growth made them the clear winner this year,” said Wanda Rich, Editor, Global Banking & Finance Review. “We look forward to seeing more from them in the years to come. “
The awards honour companies that stand out in particular areas of expertise in the banking and finance industry. BPC was awarded Best Banking Technology Overhaul Africa 2020, Best Banking Technology Overhaul LatAm 2020, and Fastest Growing Payment Solution Provider Europe 2020 because of the company’s outstanding performance and achievements and by scoring well in the following categories:
- Investment in technology to improve compliance and user experience
- A wide range of secure, customizable solutions
- Continued commitment to improve user experience and access
- Excellence in customer support
About the Global Banking & Finance Awards®
The Global Banking & Finance Awards® honour institutions that stand out in their particular area of expertise in the finance industry. They recognize achievement, challenge, progress and inspirational change in finance globally. Global Banking & Finance Review is a leading online and print magazine, which has evolved from the growing need to have a more balanced view for informative and independent news for the global banking and finance industry. It is reflected in the quality and in-depth insight provided by our experienced contributors in a clear and concise way. We have objective and respected editorial contributions from all major sectors, such as Banking, Technology, FOREX Trading, Asset Management, Corporate Governance, Islamic Finance, Project Finance, Mergers and Acquisitions, Tax and Accounting and Inward Investment; all under one global umbrella.
For Further Information, please visit www.globalbankingandfinance.com
NextGen Communications – the future of customer experience
By Andrew Beatty, Head of Global Next Generation Banking at FIS
As software development increasingly resembles push updates in services, how can financial institutions best take advantage of their investments? The answer is leveraging today’s technologies to empower institutions to elevate their customer experience with personalised and integrated communications.
Long a staple of the British market, digital banks are expanding worldwide. The pandemic played to the strengths of these organisations. With branches closed or restricted, the accessibility and flexibility of these banks were major assets.
To better understand just why digital banks succeed, we need to look at their operating models. Using Software as a Service (SaaS) and Platform as a Service (PaaS) operating models rather than more traditional and slower alternatives allows them to supercharge development.
These new technologies can elevate customer experience (CX), with a specific focus on customer communications – an area often neglected in favour of purely aesthetic upgrades to flashy-looking front-end systems.
Every minute of every day, institutions globally generate 18 million texts, 188 million emails, 511,000 tweets, 232 VoIP calls and use 4.4 million GB of internet data. This colossal amount makes it difficult to provide a consistent experience that meets ever-higher customer expectations across all communication interactions and devices. Banks need to be accessible and provide a seamless experience through any and all of the channels their customers prefer, be that Native App Push, email, SMS, print, social media, Call Centre or bots.
FIs typically lack an integrated experience. What’s needed is enabled by a consistent data schema and workflow foundation that elevates the communications experience. Customers may not know to specifically request these, but they will notice their absence. Fundamental to these capabilities are application programming interfaces (APIs) that enable banks to pick and choose best-of-breed technologies, allowing banks to focus on improving the CX and increasing Operational Efficiency and Governance.
Banks succeed on the backs of loyal customers. What inspires loyalty in customers is a banking relationship that includes both listening and speaking. Research shows that 63% of customers would consider switching banking providers if communications don’t meet their expectations. For customers who said that their banks did not proactively offer them personalised services, the customer satisfaction experience rate fell to 39%.
Research shows that more than 70% of CX leaders struggle to design projects that increase customer loyalty. Contrast this number with 75% of enterprises aiming to beat their competitors by offering the best digital consumer experience, and we can gain a sense of just how crucial communications are; a seamless CX is more important than ever to meet these goals.
These last few months have been a testing ground for banks old and new. Every email, every statement about actions taken during the pandemic is a chance to prove (or disprove) that a bank has a robust, customised communication solution. Integration across all interactions is critical.
Questions to ask
Here are six questions executives who want to improve CX at their banks need to ask when evaluating infrastructure improvements:
- How will capabilities evolve without requiring extensive development to support new data schemas, workflow, communication types and new channels?
- Will the new solution allow accelerated change management (business user-enabled) of all communications to meet internal and external demand, or will we be handcuffed to an internal or external software release for these updates?
- Will our middle/back office and call centre benefit from this solution by having the capability to send ad-hoc communications from a previously approved library?
- Will we have end-to-end tracking of all our as-delivered communications for all stakeholders (call centre, back office, etc.)?
- How is delivery remediation handled? (e., failed email delivery to SMS)
- Are all required delivery methods supported in one centralised platform?
Consider these questions before embarking on a major project. This should help ensure the selected solution results in improved Customer Experience, superior Operational Efficiency, and better Governance for your financial institution.
FIs must take advantage of emerging technologies and investment in core technologies by considering service options for all key elements of their CX. A robust data integration and workflow layer along with API integrations allow the different components of technology infrastructure to have seamless real-time integrations with third-party Customer Communication Management technologies. This can accelerate existing digital transformation initiatives and take full advantage of a modern core transformation investment – putting technology to work for FIs and their customers.
5 reasons to rebrand now
By David Langton, president of Langton Creative Group and co-author of Visual Marketing (Wiley Publishers).
- Ineffective Logo. How well does your name and image support your company’s mission? Organizations must change and evolve and sometimes that cool logo from the 80s no longer pulls its weight. Are you defending your logo just because it’s old? We often hear about how an old logo has equity with clients. But just because it is recognizable as your logo, doesn’t mean that this is how you should be known. What impression is the logo making on your behalf? Is it classic, or just old-fashioned? One healthcare client had an old logo with bad typography that was difficult to reproduce. But the CEO loved his logo and told me that the old company logo wasn’t going anywhere, “I expect that to be on my gravestone,” he told us. And that’s exactly where it should be.
- Non-descript.Is your company or service getting lost in the shuffle? If your logo looks just like everyone else’s logo, then it’s not doing its job. You must distinguish who you are in your marketplace. What are the special attributes that make your company, product of service the right solution? Find that spark of novelty that makes you special. The FedEx logo is famous for its hidden “arrow” that implies forward-motion. (They’re ones who move your packages quickly.) The UPS logo is a golden shield. (They’ll protect your packages.) AT&T has a globe. (They want to be seen as world-wide, more than just an American telephone and telegraph company.) Designer Tom Geismar says, “Symbols don’t make clear what you do; it makes it clear who you are.”
- Leadership Change.Whenever the top management at a company changes there is an opportunity to inject new energy into your messaging and redefine your mission. Capture the vision of their leadership. How does your brand reflect their goals for the new year? When General Re acquired New England Asset Management (NEAM) the new company name became “GR-NEAM.” When a new leadership team took over they decided to reclaim the “NEAM” name since it was easier to say and it gave them an opportunity to promote their new vision for the organization.
- Mergers/Acquisitions. Newly combined companies usually are in a state of chaos. Inside and outside the company people are searching for what the newly combined company will be about. This is the time to reevaluate how your brand presents who you are and what your values and strengths are in the new combined company. A report in Harvard Business Review states, “Because a merger’s success relies in part on preserving positive feelings among customers and employees, it’s smart to pursue a branding strategy that explicitly seeks to transfer equity from both merging companies to the new one.” When United and Continental Airlines merged they kept the Continental logo and aligned it with the United Name. Companies that use this “fusion” method actually exceeded their market return by 3%.
- Technology.Is your field changing while you are being left behind? This is an important time for companies to re-evaluate how their brand is presented in the marketplace. An upstart may be perceived as quicker and more technological than an established player. Can you show how important your experience and know-how is for tackling the challenges in your industry? Domino’s Pizza keeps reinventing itself with new tech to stay ahead of newly emerging rivals like UberEats who use apps to deliver food. Fast Company shows how as early as 1973 Domino’s was introducing a 30-minute guaranteed delivery then continued to reinvest in tech that utilizes voice recognition, GPS tracking and artificial intelligence to keep on top of tech revolution. Successful companies develop tech solutions that keep them ahead of the competition and then make sure their brand communications reflect their inventiveness.
Be the brand you ought to be.
Keep in mind that even if your brand experiences any of these telltale signs, don’t embark on a rebrand without making sure your business can back up the brand promise. The key to effective branding is that you must be what your brand says you are. If you are rebranding to be more technological, then you must become more tech-savvy. Just rebranding yourself without improving your services and really redefining who you are is not going to be effective in the long run.
The key to a successful rebrand is in identifying a core story that expresses the brand’s connection to its audience. Why are you important in the eyes of your target customers? And how do you tell that story? The re-brand launch is just as important as the logo artwork and the naming of the organization.
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