Bank switching continues to plague financial institutions in an increasingly competitive market. From tailored offerings to high-engagement account holder retention strategies, banks and credit unions are definitely determined, but is bank switching still a top concern at your financial institution?
New research from Javelin Strategy & Research pegs fraud as a primary catalyst for bank switching.
Nearly one million consumers switched financial institutions post-fraud last year. That’s approximately one in ten defrauded account holders. These switchers took $4 billion in credit card spending with them; giving added incentive to investigate your post-fraud protocols.
Understanding the Flight-Post-Fraud Phenomenon
Fraud is a personal, emotionally-draining experience that goes far beyond the dollars and cents for victims.1
- 69 percent reported fear for personal financial security
- 54 percent felt powerless or helpless
- 28 percent cited embarrassment over the incident
The misuse of one’s personal information brings many questions to mind, including how the information was exposed, who is responsible and how can it be prevented in the future?
A simple reimbursement as part of a zero liability policy remedies few, if any, of these concerns. It’s critical that post-fraud initiatives are not just viewed as standard practice, but an opportunity to engage and retain account holders. Beyond reimbursement, resolution requires empathetic, expert assistance.
Our team of certified Resolution Specialists can tell you first-hand the difference compassionate care can make. Fraud victims often come to EZShield stressed, scared and brimming with questions; they’ve dealt with standard fraud resolution in the past and don’t want another chore on their plate
But do you know what their first question often is? “Woah, a real person actually picked up?”
In these make or break situations, identity restoration should be manned by a live expert — one that can provide dedicated, fully-managed restoration. This drives relationships and creates a memorable account holder experience.
“The Specialist was polite and stayed on top of the process. The best customer service I have received EVER!!”
– Scott T.
“I recently received a notification from the IRS that my identity may have been stolen. When the Specialist called me to notify me of a different alert, I was able to talk with her about my identity theft concerns. She immediately activated a number of extra monitoring programs for me and talk me through my concerns. She did a fantastic job. Exactly what I hope for in customer service interactions. And I’m also impressed that she was empowered by [my financial institution] to make decisions like she did. Well done.”
Bank Switching Surges with Fraud Severity
While account holders will flee following fraud, it’s typically not their only reason for leaving. Only severe cases of fraud will single-handedly drive victims to switch.
Resolution time and financial burden play a critical role in the level of perceived severity and willingness to switch. The average switcher spent three times longer resolving the incident and incurred an out-of-pocket loss six times higher than a non-switcher.
Emotional implications are also key in determining severity. Non-card fraud, such as when a criminal impersonates the victim to access their banking portal, generates significantly higher account holder turnover than card-present fraud. This stems from the intimate nature of the crime and increased emotional and psychological impact on the victim.
Victims who switch post-fraud tend to be younger and more tech-savvy than other fraud victims. This is likely in part to their high-risk consumer persona. These individuals need comprehensive restoration services and are often dissatisfied with standard post-fraud policies.
Three Keys for Post-Fraud Account Holder Retention
Victims want to feel empowered post-fraud, not left in the dark. Use these action steps to ignite loyalty among account holders and reduce the risk of bank switching.
1. Prevent Fraud Before it Starts
Implement new security measures, relay fraud prevention education and inform consumers how they can report fraud to your institution. Drive visability of these preventative measures with online access, a mobile app and in-branch educational materials. This is a pillar of EZShield’s identity protection and features such as our mobile app come standard for our partners.
2. Help Account Holders Keep a Watchful Eye
Reduce the financial burden on both the victims and your institution with rapid detection. Allow for customer-defined account controls, timely alerts and advanced identity monitoring services. EZShield’s customizable identity solutions allow for Internet monitoring, financial transaction monitoring, public records monitoring, credit services and more to provide a heightened visibility.
3. Take a 360-Degree Approach to Restoration
Ensure restoration is spearheaded by a team of experts that can work on the victims’ behalf to minimize financial and time burdens. While victims won’t be in the thick of everything, they’ll still want insight into incident and prevention tips moving forward.
EZShield drives home these three action items with our comprehensive Secure, Monitor, Restore approach to identity protection.
From our proactive security tools and educational content, to advanced monitoring services and fully-managed restoration, EZShield addresses fraud from every angle. This allows EZShield to act as a valuable extension of our partners banking services. In the end, account holders feel empowered and protected — driving loyalty, retention and boosting partners’ bottom lines.
For more information on EZShield Identity Crime Protection, schedule a demo today.