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Finextra
4 days ago
- Business
- Finextra
6 Ways banks and credit unions can use fraud prevention for better CX: By Frank Moreno
Banks and credit unions are under constant pressure to retain customers, especially younger generations who are happy to switch primary bank accounts. Rather than adding yet another product aimed at younger cohorts, smart financial institutions (FIs) are capitalizing on their scam and fraud prevention systems, using them to build strong competitive differentiators that drive better customer experiences and even brand building opportunities. As fraud grows, customers' trust in their FIs is being systematically eroded. The 2024 Scamscope report shows that 25% of scam victims will abandon their current financial institution, and a further 20% will close their accounts without opening new ones. The days of remaining loyal to your bank no matter what are over and this is especially true amongst younger generations. These cohorts are more likely to unbundle their banking services, moving away from the traditional trend of relying on a single primary bank for all financial needs, towards using multiple providers for various services. In fact, the younger generation seem to be thoroughly underwhelmed by their banks' current performance. A recent survey from Glassbox, a customer intelligence platform working with 60% of US banks, reported that almost a third of Gen-Zs feel that their banks and credit unions are not meeting their service expectations. The study also showed that in addition to more flexible payment options, 55% of respondents wanted stronger mobile security features, while 45% were looking for real-time spending alerts and budgeting tools. Underwhelmed and underserved With demands for better service, digital offerings, and personalized experiences, it's clear that the overall customer experience now plays a crucial role in acquisition and retention. But all of these must be underpinned by security that will not only keep younger bankers safe, but also enable better, more immediate services that will set banks and credit unions apart from their digital competitors. What might not be evident is that the key to many digital and brand advantages lies within their security offering. Security drives a stronger digital brand Here are six ways banks and credit unions can use digital security to help build a better customer experience and, ultimately, a brand that will help attract and retain customers. 1. Build trust, confidence and loyalty Robust fraud protection extends far beyond compliance requirements. Guarding against social engineering scams signifies a commitment to customers and members. When consumers feel safe, they are more likely to transact without hesitation and explore new banking products and services. From a marketing perspective, this lays the foundation for successful product launches and customers (of all generations) confidently embracing new offerings. 2. Place customers at the center of the transaction Modern fraud prevention places customers in control of the transaction process. By requesting their final go-ahead whenever FIs are unsure whether a payment or purchase is legitimate (for example Zelle payments, big items purchased over Black Friday, or purchases while traveling), banks and credit unions are empowering customers to take an active role in their own security. This creates a stronger sense of control, increasing trust in their bank and encouraging a symbiotic relationship that builds loyalty rather than the paternalistic relationship so many customers are used to from their banks. This new way of interacting sits particularly well with younger generations. 3. Offer familiar, seamless user experiences User-friendly authentication methods, like biometric verification, enhance the overall customer experience by reducing friction during transactions. Advanced authentication, particularly systems using AI, could further reduce transaction declines, enabling more accurate risk assessments so customers can enjoy quicker, smoother, and safer transactions. By collecting mobile device signals like the SIM card number, network-related signals like the IP address, behavior signals like user interaction, and security related signals like biometric data, banks and credit unions can accurately determine risk and silently authenticate transactions in the background without account holders needing to take any further action. Younger customers transact online all the time. They expect the same frictionless experience from their banks and credit unions as they receive from many of the other platforms on which they engage. Ensuring excellent security, without the addition of experiential speedbumps, will score valuable points with digital natives. 4. Make it personal Gen Zs have grown up with personalized, instant digital experiences such as custom playlists, targeted ads, and curated content. They now expect the same level of personal service from all digital brands. For instance, 75% of Gen Z consumers are more likely to purchase a product if they can customize it, and 45% will leave a website if it fails to predict their needs or preference. Fraud prevention is not immediately associated with personalization, but modern authentication approaches can enable a personalized approach that adapts to individual user behavior and preferences. Using active and silent indicators to build up extensive risk data on a customer, banks and credit unions can customize security and requests for transaction verification to best suit account holders in a specific context. 5. Don't force human interactions unnecessarily Customers are looking for digital-first experiences that enable them to independently resolve issues. None more so than Gen Zs, who balk against being forced to rely on traditional customer support via contact centers interactions, which can often be time-consuming and frustrating. Banks and credit unions looking to appeal to younger cohorts should offer flexible authentication methods that align with their existing digital habits. For example, by sending an in-app push notification to a customer's smartphone to verify a transaction, rather than an SMS one-time pincode (OTP) or a phone call from the bank, customers can securely transact without needing the assistance of a human in the middle. There is a caveat, however, as Gen Zs value independence and prefer to resolve issues themselves. They are comfortable using chatbots for simple issues, but banks and credit unions should always ensure that they offer the option to escalate to a human agent when necessary. 6. Turn Security into a Differentiator Marketers understand that Gen Zs continue to emerge as a massive economic force. Banks and credit unions hoping to retain their valuable business must ensure that they keep pace with how younger generations interact across all their channels. A great digital experience can help build brand identity by enabling personalization, ensuring consistency across channels, aligning with values, and providing a seamless digital experience. These strategies allow brands to connect meaningfully with younger generations while differentiating themselves in a competitive market. Modern authentication methods have revolutionized the way we approach security and convenience, effectively eliminating the traditional trade-off between the two. When implemented thoughtfully, it is possible to turn fraud prevention into a positive aspect of the customer experience rather than a source of frustration. In the process, fraud prevention helps improve brand reputation, positions the bank as a leader in security and customer care, and will most definitely make customers think twice about switching.
Yahoo
24-04-2025
- Business
- Yahoo
Fiserv to take over Brazilian fintech Money Money
Fintech and payments company Fiserv has signed a definitive agreement to buy Brazilian fintech firm Money Money Servicos Financeiros. This acquisition is expected to extend Fiserv's offerings in the Brazilian market, supporting small and medium-sized businesses (SMBs). The acquisition is contingent on standard closing conditions including regulatory clearances, with completion anticipated in the second quarter of 2025. Money Money has developed a specialised financing engine that interfaces with the receivables registry system overseen by the Brazil Central Bank. This technology enables the provision of working capital and other financial solutions to SMBs, based on a detailed analysis of each business. The acquisition is intended to support Clover's strategy, which is aimed at aiding the growth of Brazilian businesses by addressing their payment processing, business management, and cash flow challenges. 'Clover Capital fuelled by Money Money will be integrated with the Clover platform,' Fiserv said in a statement. This will involve leveraging risk analysis technology alongside predictive analytics of client business performance to tailor financial offerings with 'competitive' terms. The service will offer advances to businesses, with repayment plans secured against future sales receivables. Launched in Brazil in December, Clover delivers a payment solution, cash flow support, and a suite of native applications. It also provides a marketplace featuring tools and systems from Fiserv's network of independent software vendors (ISVs). Fiserv Brazil general manager Jorge Valdivia said: "By adding this service to our portfolio, we take an important step to boost the growth of our acquiring clients, facilitating their access to the necessary resources to invest in improvements and processes. Our continued investment in the Brazilian market demonstrates our commitment to advance our clients' business objectives by expanding our local capabilities.' Earlier in the month, Fiserv acquired Pinch Payments, an Australian payment facilitator that operates the PayFac enablement platform "Glassbox" and serves a merchant base in Australia and New Zealand. "Fiserv to take over Brazilian fintech Money Money " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Fiserv to take over Brazilian fintech Money Money
Fintech and payments company Fiserv has signed a definitive agreement to buy Brazilian fintech firm Money Money Servicos Financeiros. This acquisition is expected to extend Fiserv's offerings in the Brazilian market, supporting small and medium-sized businesses (SMBs). The acquisition is contingent on standard closing conditions including regulatory clearances, with completion anticipated in the second quarter of 2025. Money Money has developed a specialised financing engine that interfaces with the receivables registry system overseen by the Brazil Central Bank. This technology enables the provision of working capital and other financial solutions to SMBs, based on a detailed analysis of each business. The acquisition is intended to support Clover's strategy, which is aimed at aiding the growth of Brazilian businesses by addressing their payment processing, business management, and cash flow challenges. 'Clover Capital fuelled by Money Money will be integrated with the Clover platform,' Fiserv said in a statement. This will involve leveraging risk analysis technology alongside predictive analytics of client business performance to tailor financial offerings with 'competitive' terms. The service will offer advances to businesses, with repayment plans secured against future sales receivables. Launched in Brazil in December, Clover delivers a payment solution, cash flow support, and a suite of native applications. It also provides a marketplace featuring tools and systems from Fiserv's network of independent software vendors (ISVs). Fiserv Brazil general manager Jorge Valdivia said: "By adding this service to our portfolio, we take an important step to boost the growth of our acquiring clients, facilitating their access to the necessary resources to invest in improvements and processes. Our continued investment in the Brazilian market demonstrates our commitment to advance our clients' business objectives by expanding our local capabilities.' Earlier in the month, Fiserv acquired Pinch Payments, an Australian payment facilitator that operates the PayFac enablement platform "Glassbox" and serves a merchant base in Australia and New Zealand. "Fiserv to take over Brazilian fintech Money Money " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
10-04-2025
- Business
- Yahoo
Fiserv acquires Australian payment facilitator Pinch
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. A week after saying it would launch its Clover point-of-sale service in Australia, the payments giant Fiserv disclosed Monday that it has acquired Australian payment facilitator Pinch Payments. Pinch was founded in 2017 and serves about 2,000 merchants in Australia and New Zealand, according to a news release from Fiserv on the acquisition. The Australian company is known for its management platform Glassbox, the release said. Glassbox helps companies comply with regulatory requirements and manage day-to-day operations, the Pinch Payments website says. The move extends Fiserv's reach with services such as Clover, which is focused on small businesses, in the two Pacific island countries and generally in the region, the release said. "By integrating our leading digital payment solutions with Pinch's innovative technology and local expertise, we are able to deliver innovative payment solutions to empower merchants across the (Asia Pacific) region," Gavin Jones, head of Fiserv Australia, said in the news release. The release does not give an exact date for the acquisition and doesn't say how much Milwaukee-based Fiserv paid for Pinch Payments. The merger was finalized last week, a Fiserv spokesperson said in an email. The spokesperson declined to say how much the company paid to acquire Pinch Payments. The payments company announced it was launching Clover in Australia on March 31, and said the point-of-sale service is now available in eleven countries, powering 3.5 million point-of-sale devices. Merging with Pinch 'will provide incremental distribution for Clover,' RBC Capital Markets analyst Daniel Perlin wrote in a note to the firm's investment clients Tuesday. RBC expects further integration between payments and technology companies 'as firms look to create seamless payment ecosystems,' Perlin said. Recommended Reading Fiserv says US trade war could harm demand
Yahoo
09-04-2025
- Business
- Yahoo
Fiserv buys Australian paytech Pinch Payments
Fintech and payments company Fiserv has acquired Pinch Payments, a payment facilitator (PayFac) based in Australia. Financial terms of the deal remain undisclosed. Set up in 2017, Pinch Payments is known for its PayFac enablement platform "Glassbox" and serves nearly 2000 merchants in Australia and New Zealand. This acquisition is aimed to expanding its service offerings in the Asia-Pacific market. It provides Fiserv with a payment orchestration solution, supporting service options for PayFacs, ISVs, BPSPs, ISOs, and enterprises. The addition is expected to extend the company's merchant reach and enable the delivery of new solutions, including the integration of the Clover cloud-based SaaS business operating platform, to merchants across the APAC region. Pinch Payments CEO and c-founder Paul Allen stated: 'Joining Fiserv is an incredible opportunity for the Pinch team and furthers our mission to provide seamless partner experiences to a growing number of merchants. Having worked closely with the Fiserv team, I am confident in our roadmap to expand into new markets.' Fiserv Australia head Gavin Jones said: 'This acquisition further demonstrates Fiserv's commitment to the local payments market, following our recent launch of Clover in Australia. By integrating our leading digital payments solutions with Pinch's innovative technology and local expertise, we are able to deliver innovative payment solutions to empower merchants across the APAC region. 'We welcome the Pinch associates to the Fiserv family and are committed to seamless integration of services for our customers.' Last month, Fiserv acquired CCV, a Dutch payments technology provider with operations in the Netherlands, Belgium, and Germany. Moreover, last month, the company also finalised the acquisition of Payfare, a firm offering instant payout and banking solutions to workers in the gig economy. It purchased all the issued and outstanding shares of Payfare at a price of C$4.00 per share, amounting to a total acquisition cost of C$193.15m. "Fiserv buys Australian paytech Pinch Payments " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
