Tag: credit monitoring

Today’s consumers expect more from their banks, credit unions, and financial services providers than just basic transaction services. According to an MX Technologies report, one in three consumers feels providers do not do enough to support their financial needs. At the same time, 50% of banking consumers expect personalized offers for tools, products, and services to help them reach their financial goals.1 The same study found that more than half want financial providers to help them better manage their finances.  As customers increasingly turn to their financial institutions for trustworthy information on achieving financial wellness, these institutions have a great opportunity to offer value-added financial services that meet those needs. Adopting a customer-centric approach—one that enables them to provide the specific resources and guidance customers are seeking—is essential for fostering stronger relationships. This, in turn, can be crucial for driving growth, increasing market share, and gaining a competitive edge.   What are value-added financial services?  Value-added financial services are offerings that go beyond basic financial products, such as bank accounts or loans, to provide additional benefits, convenience or personalized support to customers. These services aim to improve customer satisfaction and set a financial institution apart from competitors, and can include features such as loyalty programs, advanced fraud prevention, data analytics, online access to services and financial planning tools.   How value-added financial services can build engagement and trust  Savvy financial institutions are adapting to the evolving demands of consumers by offering innovative tools that help their customers make informed financial decisions and enhance their financial literacy.  Offering value-added financial services, such as management and planning tools, along with advanced security and fraud protection, provides financial institutions with an essential way to increase customer engagement and foster greater loyalty. By providing deeper insights, better personalization, and reliable financial experiences, institutions can help customers manage their financial health more effectively.  Addressing growing concerns over identity threats  Fraud and identity theft are top-of-mind concerns for consumers these days as incidence of such attacks are on the rise. A recent Security.org study found that a staggering 60% of U.S. credit card holders have been victims of fraud, with 45% experiencing multiple instances.2  Meanwhile, the U.S. Federal Trade Commission (FTC) received over 1.1 million complaints of identity theft in 2024, resulting in financial losses exceeding $12.7 billion.   For financial institutions, this creates an opportunity to address consumer concerns through value-added financial services. Solutions that help detect fraud early and monitor credit health can provide invaluable peace of mind. Institutions that offer services such as credit monitoring, identity alerts, and financial management tools can help customers stay protected while also opening the door to valuable recurring revenue streams.  Best-in-class value-added financial services  Experian® is uniquely positioned to support financial institutions with best-in-class value-added financial services. By leveraging a complete suite of financial health solutions, institutions can engage, educate and empower customers to be more in control of their financial lives.  Our suite of solutions include:  Credit monitoring and alert solutions – These advanced tools help increase retention and keep consumers engaged with robust credit monitoring that detects potential fraud and provides alerts, enabling them to respond more quickly.   Credit report and score solutions – Provides customers with credit information and guidance to better understand, manage and strengthen their financial well-being.  Financial management solutions – With a suite of comprehensive credit and financial management tools, financial institutions can improve a customer’s experience by providing a single platform to link accounts across different institutions and unify financial data. As customers regularly engage with the platform to manage both short and long-term financial goals, institutions can improve longer-term retention.   Identity monitoring and alert solutions – This tool helps increase consumer engagement with continuous personal data monitoring and alerts. It empowers consumers to spot potential fraud, assess risks, and respond before they become a victim of identity theft.  Identity restoration services – In the face of rising incidence of identity theft, this powerful suite of restoration services helps consumers navigate the complex identity recovery process and mitigate future financial harm.  Gaining a competitive advantage   As consumers increasingly demand exceptional customer service, offering innovative products and personalized solutions is key to preventing customer churn. When financial institutions deliver value-added financial services, they gain a competitive advantage.  Failure to deliver the service, convenience, and personalized products or tools that consumers demand risks losing them to other providers. According to J.D. Powers, up to 54% of consumers will leave their bank in the next year, costing institutions millions. Salesforce reported that 72% of consumers indicated that better deals made them switch to another brand.  Financial institutions that offer innovative value-added financial services benefit from continuous engagement that helps build trust and loyalty while generating recurring revenue through subscription-based offerings.   Our innovative offerings saw:  Credit alert login rates ten times higher than the financial services industry benchmark.  Email open rates for alerts more than two times that of the national average for financial services.  Top-performing clients with over 25% of their enrolled customers log in to the portal at least once per month.  Consumers are opening twice as many credit cards and three times as many savings accounts when using regularly personalized features.  Reasons to partner with us  When it comes to providing accurate, real-time financial data that can lead to crucial insights for better decision making, Experian is an ideal partner. Our personalized, value-added financial service can be seamlessly integrated and embedded into your existing systems, making it easier for you to meet consumer demands for tools that help them make informed financial choices and improve their financial literacy.  Learn more about our value-added financial services 1 https://www.experian.com/content/dam/marketing/na/thought-leadership/business/documents/infographic-fostering-relationships-to-unlock-growth.pdf 2https://www.experian.com/blogs/insights/infographic-stronger-customer-relationships/

Delivering a superior customer experience has become the key goal for nearly every business across almost every industry. The banking industry is no exception. A recent trend highlighting the importance of customer experience is the drop in customer loyalty. Customer expectations are higher than ever, heightening competition between traditional banks and newer market entrants. This creates a need for banks to stand out and succeed by offering a superior customer experience. That experience starts with customer engagement in banking. According to a recent Forrester study, only two out of 10 retail banks regularly engage with customers to enhance their experience. The same study found that when retail banks consistently focus on improving the customer experience, they tend to grow more than three times faster than their competitors that do not. Forrester also found that over 70% of retail banks consider digital customer engagement essential for their current success and future growth.1 The key to customer engagement in banking: understanding the customer The good news for banks is that when they engage with customers by offering the services and guidance they want, those customers tend to respond with increased loyalty. Research indicates that 54% of customers rely on their banks to help them achieve their financial objectives. Most encouragingly, this same research indicates that 71% of actively engaged customers are likely to stay with their bank for the foreseeable future.2 At the heart of today’s evolving efforts to retain customers and build stronger loyalty are innovative tools that deliver on consumer demand for greater personalization and digital experiences in day-to-day engagement with the bank. With rising interest rates and more choices in financial services, consumers are actively seeking better rates for savings accounts, loans, and credit products. A 2024 Salesforce survey reveals that 72% of consumers are motivated to switch providers in search of better deals.3 Another report indicates that 50% of banking customers expect personalized offers for tools, products, and services to help them achieve their financial goals.4 In response to this trend, banks have an opportunity to go above and beyond to attract and retain customers by focusing on delivering exceptional customer service, innovative product offerings and personalized solutions to prevent customer churn. This requires embracing innovative approaches to engagement. For example, banks can leverage customer engagement services that empower customers to better manage their financial well-being. Such services might include smart tools that provide timely alerts and reminders, enabling customers to avoid delinquency and stay current with their payments. Strategies for enhancing engagement Banks aiming to enhance customer engagement can achieve this by utilizing data-driven insights, innovative technologies and customized partner solutions to foster loyalty and long-term trust. Customer  engagement strategies should consider the following: Omnichannel experience – Banks aim to deliver a seamless, consistent experience across all touchpoints, whether it is a branch, mobile device, online platform, or contact center. Customers should be able to start an interaction on one channel and finish it on another without any friction. Connecting physical and digital touchpoints builds trust, convenience, and loyalty. Financial wellness tools and empowerment - Banks can utilize customer engagement services to provide customers with smart financial management tools, including budgeting dashboards, automated savings features, credit score monitoring, and investment advice. Providing customers with real-time insights into their financial health enhances engagement and fosters long-term loyalty. Identity protection and security tools – Banks can build trust through proactive identity protection, continuous monitoring and alerts that help customers feel protected and in control. Customer education and financial literacy – The bank can engage customers through educational content like webinars, tutorials, and in-app tips that help clarify financial products and promote better decision-making. Educated customers tend to be more confident, satisfied, and more likely to expand their relationship with the bank. Personalization through data and analytics – Banks can utilize data to deliver highly personalized recommendations, product offers, and experiences specific to individual life stages, behaviors, and goals. Predictive analytics can forecast needs, such as suggesting mortgage advice when spending and saving habits indicate a possible interest in homebuying, thus improving relevance and connection. It can also alert customers about savings opportunities. This kind of proactive engagement helps build stronger relationships. Customer engagement services: the key to driving revenue growth and enduring relationships At Experian®, we offer world-class customer engagement services that can enable banks to meet customer expectations and build stronger, long-lasting relationships. By providing tailored financial services and credit education, banks can help customers reach their financial goals. At the same time, banks can build stronger trust by empowering customers to avoid risks and take action to recover when identity theft occurs. All our solutions can be smoothly integrated into a bank’s existing ecosystem, making it quicker and easier to deliver these services to customers. As banks continue to seek ways to deliver exceptional customer experiences, it is essential to offer innovative tools and services that better engage customers. Customer engagement in banking is crucial for attracting and retaining clients. When banks go the extra mile to meet the evolving needs of customers, they are repaid with greater loyalty and long-term trust.  Learn more about our customer engagement services Download the infographic 1https://www.kameleoon.com/blog/18-stats-understand-future-cx-optimization-and-banking2https://www.postgrid.com/customer-engagement-strategies-banking/3https://www.experian.com/content/dam/marketing/na/thought-leadership/business/documents/infographic-fostering-relationships-to-unlock-growth.pdf4https://www.experian.com/content/dam/marketing/na/thought-leadership/business/documents/infographic-fostering-relationships-to-unlock-growth.pdf

Financial identity theft is one of the biggest threats to a consumer’s financial wellness in today’s digital age.1 It occurs when someone steals their personal and financial information, such as their name, address, Social Security Number (SSN), credit card, or bank account numbers, and uses it to make unauthorized purchases or access their financial accounts without their permission. This can severely damage their credit score and financial standing, often taking significant time and effort to resolve. Financial identity theft can also harm organizations, taking a toll on bottom lines due to lost employee productivity and more severe consequences if the stolen identity exposes the organization to a data breach.   How financial identity theft happens  Financial identity theft can occur through various methods, including:  Skimming: Thieves use skimming devices at ATM machines or gas pumps to steal credit or debit card information. These devices can be hard to detect, making it easy for thieves to capture card details without the owner's knowledge.  Phishing: Scammers send emails or text messages that appear to be from a bank or other financial institution, asking for personal information. These messages often look legitimate, tricking consumers into providing sensitive data.  Social engineering: Thieves impersonate someone in authority to trick consumers into giving them their personal or financial information. This can happen over the phone, in person, or through digital communication.  Data breaches: Hackers gain access to large databases of personal and financial information through breaches at companies or organizations. This stolen data can then be sold or used to commit identity theft.  Stealing mail: Thieves steal mail from mailboxes or trash cans to obtain personal financial information. This can include bank statements, credit card offers, and other documents containing sensitive data.  Account takeover: Thieves use stolen personal information to access existing financial accounts. They can change account details, make unauthorized transactions, and even open new accounts, causing significant financial damage.  Protecting consumers from financial identity theft  Organizations play a crucial role in protecting their consumers from financial identity theft. A few strategies that organizations and financial institutions can implement to protect their customers include:  Implement strong authentication methods: Use multi-factor authentication (MFA) to add an extra layer of security. This requires users to provide two or more verification factors to gain access to their accounts, significantly reducing the risk of unauthorized access.  Educate consumers: Offer services to educate consumers about the risks of identity theft and provide tips on protecting their personal information. This includes advising them to use strong, unique passwords and to be cautious of phishing scams.   Monitor for suspicious activity: Use advanced monitoring systems to detect unusual activity in consumer accounts. This can help identify potential fraud early, ensuring that any threats are addressed before they cause significant harm.  Provide identity theft protection services: Offer services that monitor consumers' credit reports and alert them to suspicious activity. These services provide continuous oversight, helping consumers stay informed and protected against potential identity theft.  Why prioritizing financial wellness matters  Investing in your customers' financial wellness not only benefits them but also brings significant advantages to your organization. Some key benefits of helping your customers improve their financial wellness include:  Increased customer loyalty: Investing in your customers' financial wellness builds trust and strengthens your relationship, leading to higher customer retention and loyalty.  Reduced customer delinquency: Educating your customers on financial management can lead to fewer missed payments and defaults, reducing your risk and improving overall financial stability.  Higher customer engagement: Providing financial wellness resources and tools encourages your customers to engage more frequently with your organization, fostering a deeper connection.  Competitive advantage: Offering financial wellness programs can differentiate you from your competitors, making you more attractive to potential customers who value financial education and support.  Positive social impact: By helping your customers improve their financial health, you contribute to the overall economic well-being of the community, creating a positive social impact.  Reduced risk of data breach: Compromised employee credentials are one of the most common gateways for data breaches. By educating consumers on protecting their financial well-being, you also protect your organization from data breach threats.   Experian Partner Solutions: Protecting your customers   We offer a range of tools to help you support your customers on their financial wellness journey and defend against bad actors. With our partnership, you can offer your customers access to:  Credit and identity monitoring and alerts: Keep consumers engaged with reliable credit tools that monitor their credit reports and personal information to alert them of potential threats, such as dark web exposure or suspicious activity. Our advanced monitoring systems provide real-time alerts, helping your consumers take immediate action to protect their financial health.  Identity restoration: Provide peace of mind by helping your consumers reclaim their identity if they fall victim to identity theft. Our dedicated identity restoration specialists guide consumers through recovery, ensuring they regain control of their financial identity quickly and efficiently.  Data breach resolution: Manage consumer data breach and crisis incidents confidently, helping to mitigate the impact on affected individuals. We offer comprehensive breach response services, including notification, monitoring, and support, to help organizations handle breaches effectively and maintain consumer trust.  Credit education: Empower consumers with the knowledge and tools to understand and improve their credit health, building customer loyalty and supporting their journey towards better financial wellness. Our educational resources and personalized advice enable consumers to make informed financial decisions and achieve their financial goals.  Protecting against financial identity theft requires a collaborative effort between consumers and organizations. By partnering with us, you can offer comprehensive financial and identity protection solutions that engage, educate, and empower your customers to better manage their financial lives. This not only helps protect your customers, but also builds trust and loyalty, positioning your organization as a trusted advocate in financial wellness and identity protection.  Learn more View infographic 1Identity Theft Resource Center, Consumer Aftermath Report.  This article includes content created by an AI language model and is intended to provide general information. 

Financial institutions are constantly searching for ways to engage their consumers while providing valuable services that keep them financially sound and satisfied. At the same time, consumers are looking for ways to limit their risk and grow their financial power while improving and protecting their financial health. Both can be accomplished through personalized financial experiences.