Consumers today are constantly on the move. Whether it be going to work, school or running errands, they have made it known that if services they seek aren’t convenient, they will likely find an alternative. This is especially true for in the world of digital payments.
We’re all aware that banking plays a key role in consumers’ lives, which is why banks need to adopt the mindset that they should be wherever their customers are. With the growth of digital channels, banks continuously have the opportunity to engage consumers globally, which makes their investment in digital initiatives that much more important.
Every consumer desires to have a simple and painless experience, and making payments is no exception. Banks play a key role as the issuers of payment credentials and the holders of consumer bank accounts and payments, whether in store or online, should result in guaranteed acceptance for legitimate consumers and offer a predictable and ubiquitous experience. During Cyber week alone, e-commerce sales reached $7.54 billion with mobile channels leading consumers’ payment preferences, according to Adobe Analytics. With transaction volumes of this magnitude, it is imperative that banks are able to quickly and intelligently authorize legitimate transactions, facilitate innovative payment experiences and mitigate online fraud.
In the past, criminals broke down the banks’ physical walls to steal money. Today, as consumers’ personal and financial data have become some of the most lucrative assets available in the market, cyber criminals have begun breaking down organization’s digital walls to acquire this information. To this end, mitigating the aftermath of these data breaches has become a top priority for financial institutions. Such mitigation techniques include diminishing the value of consumer personal data including payment card and account data, leveraging the banks omni-channel strategy and engaging consumers in real-time fraud mitigation.
By leveraging consumers’ personal mobile devices and providing real-time information on sensitive transactions, banks have the ability to build another line of defense, providing consumers with early warning signals that their account is being taken over or that a hacker is trying to do a malicious payment transaction, and giving them the ability to interject. Consumers know if they are logging into their bank account or making a purchase in real-time, so if they see something foreign, they can act quickly and provide vital and timely information that can help banks mitigate fraud.
Consumers are also seeking better insights into banking and payment transactions. Recent research shows that 64.5% of consumers want to authenticate the payments that leave their bank accounts. It is imperative that banks aim for digital payments that are accessible and straightforward, but also create a sense of security and trust that consumers’ assets are well protected.
As banks work to maintain their position in a highly competitive environment, they must embrace innovation. By offering alternative payment instruments to their consumers, protecting payment transactions and leveraging the strength of omni-channel strategies to engage consumers, they will reinforce the relevance of their brand. Doing anything less is a missed opportunity and one that new market entrants will seize.