PCM Vol.2 - Issue 6

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individuals don’t perceive mobile transactions to be as safe as in-person or even online transactions regardless of increasing security barriers. That’s important information for the banking and ecommerce. The traditional method of adding increasing measures of security, i.e., stepup challenges, puts the burden back on consumers and introduces a potential point of failure in the relationship. 83% of our study respondents said that they had experienced step-up challenges in the past year, with nearly 50% saying it happens frequently. PCN: Of those 83%, what was their perception of the customer experience? AN: Consumers left their banks because the experience was too irritating. Forgetting usernames or passwords, getting locked out of their accounts...this is frustrating to consumers, especially on a mobile device where there is an expectation of immediacy and convenience. Increased authentication methods can lead to increased customer complaints, customer servicing costs, decreased account revenue if they leave, and lost customer relationships that cost the financial services industry billions of dollars.** It’s not enough to push the problem back on the consumers and there are consequences to that. PCN: Fraud and security challenges will likely escalate, how can the financial services industry keep up with the costs to themselves as well as their consumers? AN: The financial services industry needs to invest in both preventing fraud and preventing the friction that comes with the consumer-facing prevention techniques. In countries such as Europe, where EMV has long been in place, there are still significant rates of fraud and loss of consumer confidence. This finding underscores the fact that EMV isn’t the answer to all security and fraud challenges and step-up challenges are creating greater friction. This is what digital transformation is all about. Security and a positive digital Expert Interview experience are not mutually exclusive. It’s important to take a holistic approach to digital security. The net is that the financial industry has to do better to tackle ongoing threats while preserving the customer experience. *First Annapolis conducted a multi-market consumer survey based on a sample of 3,090 consumers from the U.S., U.K., and Australia **Of the 83% experiencing step-up challenges, 3% will likely leave their bank as a result of friction. This equates to 3.9MM Relationships lost at an approximation of $2,533 Est. revenue remaining per relationship, or $10.0 Bn Lost Relationship Value ThreatMetrix®, The Digital Identity Company, is the market-leading cloud solution for authenticating digital personas and transactions on the Internet. Verifying billions of annual transactions supporting tens of thousands of websites and thousands of customers globally through the ThreatMetrix® Digital Identity Network, ThreatMetrix secures businesses and end users against account takeover, payment fraud and fraudulent account registrations resulting from malware and data breaches. Key benefits include an improved customer experience, reduced friction, revenue gain, and lower fraud and operational costs. The ThreatMetrix solution is deployed across a variety of industries, including financial services, e-commerce, payments and lending, media, government, and insurance. For more information about the study or related topics, please contact: Jaci Robbins, Director of Marketing, (jrobbins@threatmetrix.com) 014
Spotlight You think you have what it takes to start a business in a super-hot market? <strong>PCM</strong> takes a close look at some of the most innovative and promising startup companies in the payment industry.
Page 1 and 2: PCM YOUR GATEWAY TO THE WORLD OF PA
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Page 19 and 20: jobs Hot Jobs TECHNOLOGY PRODUCT MA
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