#Cornerstone Advisors #Fraud Resolution #Banking Relationships

Understanding the Impact of Fraud Resolution in Banking

In the ever-evolving landscape of banking, consumer trust is paramount. According to a recent study by Cornerstone Advisors, a firm known for its innovative business and technology consulting for financial institutions, the process of resolving fraud incidents holds significant weight in shaping banking relationships. Amidst the growing prevalence of fraud, a seamless resolution experience can either solidify customer loyalty or push them towards alternative institutions.

The Study's Insights

The research surveyed over 2,000 U.S. consumers who have credit or debit cards and have experienced fraudulent activities in the past five years. Strikingly, one in three respondents faced fraud three or more times within that timeframe. This alarming statistic underlines the crucial need for banks and credit unions to enhance their fraud resolution processes.

Ron Shevlin, Chief Research Officer at Cornerstone Advisors, articulates that while fraud will continue to exist, banking institutions must not let the resolution process falter. The survey found that 25% of consumers rated their banks poorly in fraud resolution, indicating room for significant improvement.

The Fraud Experience Index

To assess customer satisfaction with fraud resolution, Cornerstone devised a Fraud Experience Index, graded on a 100-point scale across five critical areas: detection, provisional credit issuance, investigation/documentation, final resolution, and communication with customers. The average score was a mere 76, equivalent to a