Written by:
Walter McCahon, Manager, Data Policy, UK Finance &
Ali Imanat, Manager, Economic Crime – e Crime Lead, UK Finance


All firms want to deliver an exemplary and effortless customer experience as part of their offering. Depending on the sector and the channel, this can include remembering who customers are to enable personalisation, using biometrics for a secure and easy log in, and customers experiencing minimal hassle when making purchases via the ability to store card information and other details. Customers have grown to expect this.

At the same time, regulators and the public also expect firms to be more proactive in protecting their customers from fraud: using additional controls like enhanced warnings and security questions tailored to the customer’s activity, the use of two-factor authentication to access and make payments via online banking, and  double checking unusual or suspicious transactions with the customer – for example, through online pop-ups and text messages. Often this can add friction and slow down the customer journey, causing tensions with the customer requirement for a smooth, seamless and, above all, speedy customer journey.

And, of course, both customer experience and fraud prevention need to be balanced against privacy considerations. With the General Data Protection Regulation (GDPR) having come into force in May 2018, we are already seeing more (and bigger) pop-up notices about cookies, for example, which can interrupt the customer journey. These new cookie notices often have more granular controls rather than just giving an ‘I accept’ button as in the past. Consumers should welcome the added transparency and control, but the pop-ups can sometimes just be an unwelcome interruption.

We are already seeing technology develop to detect and prevent fraud through new forms of analytics and data sharing. These developments will need to give individuals the right balance of explanation and control to ensure that they don’t feel intrusive, without making the customer journey any slower than it has to be – while at the same time ensuring criminals cannot reverse engineer these preventative measures and evade scrutiny. It is an interesting three-way balancing act that firms will have to manage more and more as time goes on.

To learn more, come to UK Finance’s Economic Crime Congress on Wednesday 12 December, in particular the panel discussion on the Challenge of Customer Protection vs Convenience. View the Congress Agenda here.


Related Event

Economic Crime Congress – Wednesday 12 December

With just under three weeks to go until this year’s Economic Crime Congress, we are delighted to be working with PA Consulting on the Fraud Prevention stream. Digital services such as Open Banking are revolutionising the industry, but cyber-criminals are capitalising on consumer inexperience. Invited experts will debate how the industry can work together to implement measures to tackle these new types of fraud and ensure customers are protected and confident to embrace innovation as the financial sector broadens. Book Now.

Walking the tightrope: balancing fraud prevention, privacy and the customer experience
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