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INDUSTRY INSIGHT
The right service for the right customer How are banks controlling the risks inherent in rolling out new multi-channel solutions? Asks Bob Tramontano.
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oday the innovative, contemporary banking institutions I speak with see delivering an exceptional customer experience as their top priority, and selfservice as their most important channel to market. Self-service has become a way of life. It is no longer a ‘nice to have’ capability, and consumers have come to expect self-service as their prime interface with their bank of choice. Recently commissioned research from NCR reveals that 79 percent of US consumers are more likely to choose a fi nancial institution that gives them greater control in how they interact through multiple channels – an institution that meets their need for more convenience according to their preferences and presence. Not surprisingly, then, even during difficult times, smart banks continue to make capital investments in their self-service channels, be it online, mobile, or pointof-service locations such as ATMs and kiosks. The challenge to the banks is how they harness and synchronize these channels in a truly transformative way.
“Recently commissioned research from NCR reveals that 79 percent of US consumers are more likely to choose a financial institution that gives them greater control in how they interact through multiple channels”
ployed small businesses. A recent study by Javelin found that small banked business owners carry more balances, invest more heavily and demonstrate a greater need for credit products than other consumers. Nearly half of them (48 percent) consider remote capture to be desirable or very desirable. Similarly, small under-banked business owners represent an important and growing sector as more people are taking the option of self-employment in the current economic circumstances. In common with banked business owners, they have greater technology ownership and are more welcoming of remote deposit capture than other consumers.
Containing risk Of course, moving away from a system of physically presenting checks at the branch does give rise to new risks of fraud, and it’s important that fi nancial institutions comply with Federal Financial Institution Examination Council (FFIEC) guidelines to limit risk exposure as identified by the FDIC. The major dangers for mobile remote deposit capture remain attempts to alter image details, redeposit and the submission of counterfeit items. It makes sense for fi nancial institutions to contain risk by taking account of risk scoring net worth, and exposure limits could be set in accordance with the relationship that the consumer has with the bank, with higher limits being available to long-standing customers using the bank for a range of services.
Bob Tramontano is vice president of financial industry marketing at NCR, a leading global provider of payments, assisted and self-service solutions, with over 125 years of experience and knowledge.
Responding to customer need We have already seen that intelligent deposit ATMs have the power to reduce delivery costs dramatically and grow deposit volumes. It also allows low complexity transactions to migrate out of the branch and creates new levels of customer loyalty. The introduction of remote deposit capture provides new opportunities for customers to deposit checks at ATMs, in the office or at home. And now, with mobile technology, a customer can deposit a check whenever they want and wherever they are. For any product, the key to successful adoption is identifying the most likely users. The questions banks need to address are, ‘what market segments should be targeted for mobile remote capture?’, and, ‘how do we limit fraud risk?’ There are 26 million small businesses in the US and 13 percent of households describe themselves as self-em-
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Getting the most from the mobile channel NCR is responding to this challenge by leveraging insights gained from our experience across multiple industries around the globe. We’re delivering best practices on how to achieve business goals through the innovative application of technology. We are continually working with banks around the world, whether that’s creating back office or branch efficiencies or seamless channel experiences that lead to improved loyalty and growth. What’s more, offering customers mobile remote deposit lessens the need for a local branch in order to operate a bank account. As with other channels, risks need to be managed by using diligence, controls and knowing your customers, but innovative players are already delivering the service and experiences customers need, where and when they want them.
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