Resolving Bank-Favored Financial Disputes

Resolving Bank-Favored Financial Disputes

In a recent podcast discussion, Ryan Sorrels, the Chief Risk Officer at Quavo, and Suzanne Sando, the Lead Analyst of Fraud Management at Javelin Strategy & Research, highlighted the potential for banks to leverage fraud dispute processes as a means to strengthen relationships with customers and build trust.

Transparency is key in managing customer expectations during the dispute process, particularly when account holders are vulnerable. Banks can improve the fraud dispute process and build trust with customers by focusing on treating victims empathetically, providing transparent and timely resolution updates, and using technology to streamline dispute handling.

1. Empathy and Supportive Communication

Many fraud victims feel neglected when banks treat them like an inconvenience. By showing empathy and providing supportive communication, banks can restore confidence and reduce negativity during an already stressful experience.

1. Enhanced Transparency

Customers want clear, ongoing updates throughout the dispute process. Automating workflows and standardizing procedures help ensure no cases fall through the cracks, making customers feel prioritized and reducing frustration.

1. Seamless and Fast Resolution

The quality of fraud resolution matters more for trust than the fraud event itself. A quick, transparent, and smooth process reinforces long-term loyalty and trust.

1. Customer Empowerment

Empowering customers as the first line of defense by providing targeted education, risk alerts, and tools to recognize and report suspicious activity builds security awareness and trust.

1. Technology-Enabled Efficiency

Incorporating "good customer" scoring and AI can reduce unnecessary fraud blocks, improving the experience. Allowing customers to customize protection settings increases their sense of control and security without sacrificing usability.

1. Streamlined Evidence Submission

Implementing user-friendly interfaces and reminders for evidence submission can help avoid delays or expirations that can frustrate customers.

By focusing on empathy, transparency, speed, customer empowerment, and technology-enabled efficiency, banks can turn a potentially negative fraud dispute into an opportunity to deepen trust and strengthen customer relationships.

Maintaining and growing brand loyalty and trust with the bank involves improving high-stress situations like the dispute process. Trust is the centre of the customer-bank relationship, and a positive dispute experience can strengthen that trust.

Historically, the dispute resolution process has been viewed as a back-office function, primarily focused on cost, efficiency, and staffing requirements. However, customers expect responsiveness and swift, fair outcomes during the dispute resolution process. A poor dispute experience can drive customers away and influence their loyalty, with some customers willing to switch banks after a negative experience.

The way a bank handles the resolution process can have a greater impact on a customer's trust in the institution than the fraud itself. Financial institutions are perceived as trusted entities, particularly for protecting consumers from fraud. By improving the dispute process, banks can reinforce this trust and build long-term customer loyalty.

Quavo is leading the charge in eliminating friction in the dispute process through AI-driven tools and automation. Solutions that automate much of the dispute process can help employees manage their time more effectively and focus on customer needs. With Quavo's platform, the time taken to file a dispute drops from 10 minutes to just two minutes.

The whitepaper "The Trust Factor: Turning Fraud Challenges into Customer Loyalty Opportunities for Financial Institutions" discusses the importance of managing customer expectations and improving the dispute process to build trust and loyalty. Financial institutions can improve the dispute process by setting clear expectations for customers, keeping them informed throughout the process, and providing a realistic timeline for resolution.

References:

[1] Quavo. (n.d.). Eliminating Friction in the Dispute Process: A New Approach to Customer Loyalty. Retrieved from https://www.quavo.ai/resources/eliminating-friction-in-the-dispute-process-a-new-approach-to-customer-loyalty

[2] Javelin Strategy & Research. (2020). The Trust Factor: Turning Fraud Challenges into Customer Loyalty Opportunities for Financial Institutions. Retrieved from https://www.javelinstrategy.com/research/the-trust-factor-turning-fraud-challenges-into-customer-loyalty-opportunities-for-financial-institutions

[3] Sando, S., & Sorrels, R. (2021, April 15). Building Trust Through a Better Dispute Process [Podcast episode]. Retrieved from https://www.javelinstrategy.com/podcast/building-trust-through-a-better-dispute-process

[4] Federal Trade Commission. (2020). Identity Theft: How to Protect Yourself. Retrieved from https://www.consumer.ftc.gov/articles/0497-identity-theft

[5] Nilson Report. (2020). Why Customer Experience Matters in Fraud Management. Retrieved from https://www.nilsonreport.com/pdfs/jr_1120.pdf

1. In the pursuit of enhancing customer trust, banks can utilize advanced technology like AI and automation, as demonstrated by Quavo, to streamline and expedite the dispute process.
2. To foster strong relationships in today's competitive business environment, financial institutions should continually strive to digitalize and improve their fraud dispute processes, leveraging cutting-edge technology in finance and business to deliver a seamless, efficient, and empathetic customer experience.

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