In the past, marketing and sales teams were seen as the collectors and custodians of information about the customer. Fraud teams also have access to a tremendous amount of data about customers, but this information is used primarily to differentiate actual customers from fraudsters. Adding marketing insights around consumer behaviour to fraud strategies will not only create more focused, effective strategies, but will also help marketing teams plan, segment and deliver products and offers with greater success – giving the customer a better outcome too.
From isolated interactions to lifecycle relationships
In addition to better cross-functional sharing of information, greater collaboration is needed across teams and processes that are highly susceptible to fraud – account opening, account access and maintenance, and transactions. Different internal teams are responsible for each of these processes, and these teams operate independently of one another, often with varied solutions and different risk mitigation philosophies. Whilst this is a simplified depiction of business processes, things get more complicated when you look across multiple product types, channels and geographic regions.
Putting the customer at the heart of your business helps you to rethink your business processes in terms of a customer engagement lifecycle. Adopting this holistic approach encourages the sharing of information across the business processes, which helps to proactively detect fraud earlier at the point of account opening or account access and maintenance, and reduces the vulnerability of financial loss later at the point of transaction. Sharing customer information across the processes within the lifecycle can reduce customer friction caused by continuously verifying routine account activities, and save on capital and operational expenses caused by increased fraud investigations.