Here is the converted article in markdown format:
Banks Must Unite Against Fraud: ‘Customer Journey’ Approach Key to Success
In today’s age of cybersecurity, banks are facing an unprecedented threat from criminals who are exploiting weaknesses in their systems to commit financial crimes. To stay ahead of these threats, institutions must adopt a new approach that brings together different disciplines and functions under one umbrella.
The ‘Customer Journey’ View of Fraud
By thinking like criminals, banks can design controls with the greatest impact. Current defenses are focused on point controls or silos, but are not based on a deep understanding of how fraudsters operate. A “customer journey” approach, which focuses on the entire sequence of events from customer identification to authentication and beyond, is key to success.
Key Questions for Banks
As banks design their target risk operating model for financial crimes, fraud, and cybersecurity, they must probe questions about:
- Processes and Activities: What are the key processes or activities to be conducted for customer identification and authentication?
- People and Organization: Who are the relevant stakeholders in each line of defense?
- Data and Technology: What tools and frameworks should converge?
Integration is Key
Most banks begin their journey by integrating their cybersecurity and fraud units. As they enhance information sharing and coordination across silos, greater risk effectiveness and efficiency becomes possible.
A ‘Center of Excellence’ for Financial Crimes
Some banks are taking a more holistic approach, setting up centers of excellence that enable end-to-end decision making across fraud and cybersecurity. For example, a leading US bank has set up a center of excellence to coordinate its efforts against financial crimes.
The Future of Fraud Management
As the threat landscape continues to evolve, banks must stay ahead of the game by adopting a unified approach to fraud management. By integrating their risk functions and thinking like criminals, they can design controls that are effective and efficient. The future of fraud management is about:
- Collaboration: Integrating different disciplines and functions under one umbrella
- Coordination: Enhancing information sharing and coordination across silos
- Customer-Centric Approach: Focusing on the customer journey to design effective controls
Conclusion
In conclusion, banks must unite against financial crimes by adopting a new approach that brings together different disciplines and functions under one umbrella. By focusing on the customer journey and integrating their risk functions, they can stay ahead of the threats and protect their customers’ interests.