Investments into higher standards of fraud risk management can reduce fraud-related losses by 10-40 bps of operating income while improving customer satisfaction. This makes it an interesting business case not only from an operational risk angle but more so from the perspective of the business. CEOs, CFOs and CROs should take the opportunity to gain a competitive advantage
Fraudsters are becoming more sophisticated. This, coupled with an exponential growth of card and e-money payments over the past years, especially in emerging markets in Asia, makes fraud a major concern for many banks in the region. Facing direct competition from more digitally advanced neo banks and payment providers, incumbent banks need to offer faster and often digital onboarding, payment and other banking channels to their clients. This also means that they cannot add layers and layers of security without compromising customer experience and/or facing rising costs.
This report looks at how consumer and business banks in Asia can successfully take a disruptive approach to effectively and efficiently mitigate rising fraud risks and overcome the tradeoff between losses, operational costs and customer experience.
