9 Digital Banking Failures (And How to Fix Them Easily)

Leor Melamedov

It’s not easy for banks to quickly and efficiently complete customer-facing tasks. They must fulfill an ever-growing list of KYC requirements and are constantly under the microscope of regulators. This is inevitable. But the good news is that banks can now stay compliant while delivering a seamless customer journey.

Legacy processes such as fax machines, scanners, and even desktop computers can be a thing of yesterday. So can digital silos that fail to communicate with each other. With a Digital Completion platform, banks can accelerate many mission-critical, customer-facing processes. Here, we’ll dive into them.

Use Case #1: Quickly Resolve Customer Disputes
Use Case #2: Speed Up Fraud Investigation Journeys
Use Case #3: Quickly Collect Reports of Lost and Stolen Credit Cards
Use Case #4: Easily Replace or Issue Credit Cards
Use Case #5: Seamlessly Manage Presidential/Regulatory Complaints
Use Case #6: Efficiently Gather Terms & Conditions/e-Consent
Use Case #7: Easily Complete SCRA Processes
Use Case #8: Smoothly Manage Account Transfers and Assumptions
Use Case #9: Build Intuitive Self-Service Workflows

 

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Use Case #1: Quickly Resolve Customer Disputes

Leverage Digital Completion across multiple communication channels to offer more rapid feedback and document collection, eSignature support, confirmation of receipt, and more.

The Customer Pain

  • Disagreements between customers and banks require clarification, but the process of getting that clarification is difficult.
    Customers are often forced to work outside their channel of choice when trying to file a dispute with their bank.
  • For example, they may find themselves attempting to complete the process on their phone, but end up getting redirected to a physical branch.
  • Submitting proof of the issue or signing forms involves multiple steps.
  • As a result of these service-level issues, customers are at risk of escalating their cases, getting entangled in legal disputes, and even churning.

The Bank Pain

  • Disjointed processes lead to a proliferation of open cases that languish and lag.
  • Valuable employee time is wasted on multiple or incremental contacts with customers.
  • Lengthy turnaround time leads to serious service-level issues.

How to Digitally Complete Dispute Resolution

Step 1: Customer engages (visits bank branch, calls contact center, uses online chat, visits website, etc.) and begins a dispute process. This can be agent-assisted (through a conversation with a rep), or workflow-driven (via web/portal).

Step 2: Bank verifies the customer’s identity using digital ID verification software, one-time password (OTP), or knowledge-based authentication depending on the channel and whether it’s behind an authenticated space.

Step 3: The digital dispute form is collected (if necessary). Supporting documentation/proof related to the dispute is also collected. If agent-assisted, the dispute form can be reviewed in real time using shared review. All documentation appears on the agent side (branch/call center).

Step 4: Bank launches an internal investigation executed (via the standard process). Communication/updates can be pushed to the customer (manually or via API integration).

Step 5: Dispute resolution achieved and communicated back to the customer. Acknowledge resolution response to customer –– ensuring that communication was received.

Results

  • Improved First-call Resolution (FCR)
  • Improved Turnaround time (TAT) (especially with digital document collection)
  • Improved overall time to resolution
  • Improved Net Promoter Score (NPS) / Customer Satisfaction Score (CSAT)
  • Improved customer experience

Use Case #2: Speed Up Fraud Investigation Journeys

Fraud victims are under enough stress. Banks have an invaluable opportunity to alleviate that stress by speeding up and streamlining fraud investigation journeys. A seamless automated digital workflow improves the customer experience in banking during fraud investigations.

A Digital Completion platform also comes with a full audit trail/documentation trail and a more secure “proof” of receipt than legacy processes such as mail and fax — where additional touchpoints can result in lost or misrouted communications.

The Customer Pain

  • Customer fraud complaints are serious and require investigation, but the process of investigation can be fraught with inconvenience
  • When filing fraud complaints, banking customers are often forced to work outside their channel of choice
  • Submitting proof or signing forms is annoying and submission back is problematic
  • Fraud journeys may require additional information or supporting documentation and notarization of specific forms –– which can be a customer inconvenience
  • All this makes for a high-stress experience for customers who may be a victim of fraud

The Bank Pain

  • Longer time to resolve a dispute
  • False starts or open cases that lag
  • Insufficient documentation or responses –– resulting in multiple contacts/incremental contacts with customers
  • Extra steps lead to long turnaround times, which in turn leads to serious service-level issues such as escalation and churn

How to Digitally Resolve Fraud Incidents

Step 1: The customer engages (via phone call, chat, web, etc.) and begins a fraud investigation request (can be agent-assisted or workflow-driven).

Step 2: Bank verifies the customer’s identity using digital ID verification software, one-time password (OTP), or knowledge-based authentication depending on the channel and whether it’s behind an authenticated space.

Step 3: Applicable fraud forms and supporting documentation is requested or sent to the customer to complete. If the fraud case is agent-assisted, these documents can be co-reviewed via digital channels using the shared review capability.

Step 4: The bank conducts an internal investigation. During this time, additional digital document collection or eForms may be required ( affidavits, police reports, etc.).

Step 5: The fraud dispute is resolved and findings are securely communicated to the customer (with acknowledgment possible).

Results

  • Improved FCR
  • Improved TAT (especially with digital document collection)
  • Improved overall time to resolution
  • Improved NPS/CSAT
  • Improved customer experience

Use Case #3: Quickly Collect Reports of Lost and Stolen Credit Cards

While many banks already have a system in place that allows customers to digitally report lost or stolen credit cards, a Digital Completion platform can assist in cases where any supporting documentation or follow-up is required (e.g. should it move to a fraud or dispute process).

The Customer Pain

  • When reporting a lost or stolen credit card, banking customers are often forced to work outside their channel of choice
  • Submitting proof or signing forms is frustrating and submission back may be slow

The Bank Pain

  • Banks often have developed a quick reporting process for this solution (such as a contact center that fields calls) but any additional reporting or documentation may still require a lengthy process to complete
  • Lengthy processes result in lost employee time and wasted resources

How to Digitally Collect Lost and Stolen Credit Card Reports

Step 1: The customer engages (via phone call, chat, web, etc.) and reports a lost or stolen credit card (can be agent-assisted or workflow-driven).

Step 2: Bank verifies the customer’s identity using digital ID verification software, one-time password (OTP), or knowledge-based authentication depending on the channel and whether it’s behind an authenticated space.

Step 3: To supplement existing processes, a digital workflow allows banks to collect specific information, address key questions, and/or validate last-known purchases, etc. a Digital Completion platform also assists in collecting data to verify if possible fraud has also occurred.

Step 4: Standard bank processing for lost/stolen cards. If fraud is suspected, an interactive session can be activated for the fraud processing flow.

Step 5: A new account number is issued, and any disputed charges or events are resolved and communicated back to the customer.

Results

  • Improved FCR
  • Improved TAT (especially with digital document collection)
  • Improved overall time to resolution
  • Improved NPS/CSAT
  • Improved customer experience

Use Case #4: Easily Replace or Issue Credit Cards

Not all banks have a robust online account servicing process. That’s OK. Such banks can still leverage a Digital Completion platform to digitize the replacement or issuing of credit cards.

This improves customer-facing credit card processes via automated workflows to help identify higher-risk scenarios via self-service channels.

For example, if a customer still has the card in their possession but it is just damaged, that can trigger a simple credit card replacement workflow. If a customer is reporting a lost or stolen credit card, that comes with a higher level of risk and requires an investigation workflow to be activated.

The Customer Pain

  • Customers are forced to go through manual processes or fulfill time-consuming requirements to request additional/authorized users
  • Customers are forced outside their channel of choice or require time to engage when the branch is open –– versus being able to engage from any location or on their own time

The Bank Pain

  • May not be able to engage customers outside of staffed hours for these types of requests
  • May require signed forms or processes not readily available online
  • Remote identity verification might be a challenge

How to Digitally Replace or Issue Additional Credit Cards

Step 1: The customer engages (via phone call, chat, web, etc.) and requests a replacement or additional credit or debit cards. This can be agent-assisted or workflow-driven.

Step 2: Bank verifies the customer’s identity using digital ID verification software, one-time password (OTP), or knowledge-based authentication depending on the channel and whether it’s behind an authenticated space.

Step 3: Authorization forms are collected to issue the new cards, or add authorized users to the accounts.

Step 4: Internal review and processing of requests is completed. Accounts are updated and new or replacement cards are sent to the customer.

Results

  • Improved FCR
  • Improved TAT (especially with eForm collection)
  • Improved overall time to resolution
  • Improved NPS/CSAT
  • Improved customer experience

Use Case #5: Seamlessly Manage Presidential/Regulatory Complaints

Presidential and regulatory complaints occur when the customer has escalated an issue up to the highest internal escalation point. In other cases, they’ll engage with regulators and/or other agencies regarding their issue. The customer is usually agitated and the situation may be heated.

A Digital Completion platform can offer a solid audit trail for any and all documents shared during presidential/regulatory complaints, as well as real-time messaging with an agent. This allows for a formal and well-documented engagement process and provides an efficient way to communicate and share with customers.

The Customer Pain

  • Submitting proof or signing forms is often an annoying and complicated process
  • Lengthy turnaround time due to digital silos and legacy processes
  • The customer is already frustrated, and prolonged processes and delays only exacerbate that frustration

The Bank Pain

  • Communicating with customers is difficult to do both securely and efficiently
  • It requires a solid audit trail and documentation sharing
  • Regulatory investigations or challenges often spawn from this journey, putting efficiency at risk

How to Digitally Resolve Presidential/Regulatory Complaints

Step 1: The customer engages with the bank.

Step 2: The optional digital identity verification process is engaged.

Step 3: Additional documentation, supporting evidence, or content is shared in real time or via a workflow/standard requests.

Step 4: Throughout the investigation, the bank communicates with the customer. A shared digital review process can be used to walk the customer through any specific findings or clarification on documentation, if and when needed.

Step 5: The issue is resolved and communicated back to the customer.

Results

  • Improved TAT (especially with digital document collection)
  • Improved overall time to resolution
  • Improved NPS/CSAT
  • Improved customer experience

Use Case #6: Efficiently Gather Terms & Conditions/e-Consent

Spare your customers the headache of listening to tedious agent scripts with instant legal acknowledgments of terms and conditions. Get consent wherever your customers are.

The Customer Pain

  • Customers endure a cumbersome process for banking terms and conditions — they must give consent on hardcopies, or listen to lengthy agent scripts
  • Customers may receive multiple T&Cs during an engagement when just one blanket consent form would suffice
  • Customers are more likely to dispute verbal T&C engagements. In part, this is due to misunderstandings during verbal consent approvals.

The Bank Pain

  • If the T&Cs are verbal, it often takes more time –– and tracking/auditing those sessions requires call logging and archival research to extract
  • Verbal T&Cs may prolong AHT and lead to employee burnout due to the repetitive nature of these engagements

How to Digitally Complete Terms and Conditions

Step 1: The customer engages the bank from any channel

Step 2: Digital ID verification is optionally employed

Step 3: e-Consent is captured at the beginning of the interactive session, or via specific forms/consent requests, or via specific T&Cs associated with a new or existing product/service that demands a change in terms

Step 4: Customer consent is received for terms and conditions

Results

  • Improved customer audit trail for T&Cs
  • Improved TAT (for phone channel)
  • Improved customer experience
  • Improved compliance experience

Use Case #7: Easily Complete SCRA Processes

Processes surrounding the Servicemembers Civil Relief Act (SCRA) are still stuck in the 1990s at best. A Digital Completion platform provides a streamlined and secure way to complete processes for troops and their families.

The Customer Pain

  • Servicemembers lack access to many banking communication channels
  • Servicemembers struggle to engage with bank employees during staffed hours as they may literally be on the other side of the world
  • Frustration is widespread due to old-school technology that even then isn’t accessible to them
  • Servicemembers deal with enough stress already — they don’t need a banking process that adds to it

The Bank Pain

  • SCRA means heavily regulated journeys: there’s a potential for fines, penalties, or bad press when it isn’t managed effectively
  • Manual and complicated processes with major time gaps and delays in receiving documentation or contacting forward-deployed troops
  • Many other channels are less secure or not easily accessed.

How to Digitize SCRA Processes

Step 1: The customer engages from any channel

Step 2: Digital identity verification (optional) is employed

Step 3: Applicable documents captured (military orders, etc.) to complete account processing for SCRA impacted customers

Step 4: All processing/account updates are completed and communicated back to the customer as required

Results

  • Improved customer access
  • Improved FCR
  • Improved TAT (especially with document collection)
  • Improved NPS / CSAT
  • Improved customer experience

Use Case #8: Smoothly Manage Account Transfers and Assumptions

The transfer of bank accounts and assumption of accounts/debts/loans (generally in the case of death or divorce of the primary account owner(s)) is stressful as these transfers are typically for loved ones — and carries risk for the bank. Fixing broken customer journeys can ease the bureaucracy surrounding it.

The Customer Pain

  • The customer is often forced to work outside their channel of choice
  • The process of submitting forms is often annoying and complicated
  • Turnaround time and “gaps” in engagement due to the process and additional steps can cause delays
  • The customer lacks visibility into the process

The Bank Pain

  • Difficulty completing the process and/or challenges with all parties completing the process in a timely manner
  • Banks often rely on manual processes and/or engaging parties separately to complete those processes –– instead of in a joint/unified manner

How to Digitize Account Transfers and Assumptions

Step 1: Customer engages from practically any channel

Step 2: The customer’s identity is verified using digital ID verification software, one-time password (OTP), or knowledge-based authentication depending on the channel and whether it’s behind an authenticated space

Step 3: Authorization eForms are collected from all impacted parties

Step 4: All processing/account updates are completed and communicated back to the customer as required

Results

  • Improved FCR
  • Improved TAT (especially through eForm collection)
  • Improved overall time to resolution
  • Improved NPS/CSAT
  • Improved customer experience

Use Case #9: Build Intuitive Self-Service Workflows

With a Digital Completion platform, bank customers can access self-service workflows via the bank’s website or IVR. It’s a simple process via the Integration Hub, though more advanced options are available via client-developed API designs.

Additional workflow options can be harnessed to streamline self-service journeys while still providing improved logic and guidance.

The Customer Pain

  • Customers may have very limited options to engage the bank online to complete forms or submit documents
  • Customers may be forced to engage in less desirable channels to complete a process –– including voice –– and need to complete processes on the bank’s schedule instead of their own

The Bank Pain

  • The bank’s infrastructure may not be up-to-date enough to support the automatic handling of requests
  • The bank may require staff to assist or support requests that often should not require up-front staffing to help a customer complete

How to Digitize Self-Service Workflows

Step 1: The customer and agent enter an interactive session through IVR, website engagement, or other self-service link option

Step 2: The bank provides the customer with the necessary eForms and document requests necessary to complete the process

Step 3: The customer sends the bank the completed eForm or document, which is then processed in the back office

Step 4: The process is completed (or issue resolved)

Results

  • Improved FCR
  • Easier document/form collection –– in the customer’s channel of choice
  • Reduced overhead on staff (no agent required)
  • Consistent compliance/user experience

The Bottom Line

Banks can complete more customer journeys, faster with a Digital Completion platform such as Lightico’s Digital Completion Cloud. By eliminating silos and replacing manual legacy processes with end-to-end digital journeys, practically any customer-facing process can be dramatically accelerated.

 

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