Vision 2014: To Trust or Not To Trust

  • 360 views
Uploaded on

The faceless consumer is becoming a constant presence in today’s increasingly digital world. Retailers and financial institutions need to understand the different approaches to security required when …

The faceless consumer is becoming a constant presence in today’s increasingly digital world. Retailers and financial institutions need to understand the different approaches to security required when dealing with consumer devices instead of consumers. Ori Eisen, 41st Parameter’s Chief Innovation Officer, will describe how device recognition technology can provide banks and retailers with valuable information about Card Not Present transactions and the consumer behind the device.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
360
On Slideshare
0
From Embeds
0
Number of Embeds
4

Actions

Shares
Downloads
4
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. ©2014 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. To trust or not to trust Ori Eisen 41st Parameter – A part of Experian #vision2014
  • 2. 2©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Customers love to buy with mobile devices 15% increase in online purchases 35% increase in mobile devices Consumers aren’t simply “window shopping” or comparing prices with their mobile devices; they are shopping on them now as well New study data released from 41st Parameter, December 2013
  • 3. 3©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Increased mobile activity means less trust You really don’t know most of your online customers Can’t recognize = Can’t authorize
  • 4. 4©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. If you can’t trust who’s coming to your site to buy… …you are declining legitimate purchases unnecessarily just because you are uncertain
  • 5. 5©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Facts that may surprise you… Source: TrustInsightSM survey of online consumers who had a CNP transaction declined, n=1,000 – January 2014 17%report having had an online transaction declined $40B lost each year due to false positives that could be reclaimed
  • 6. 6©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Ever wondered how your customers feel when their credit cards are declined online?
  • 7. 7©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. 83% feel this way Source: TrustInsightSM survey of online consumers who had a CNP transaction declined, n=1,000 – January 2014
  • 8. 8©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. When customers are declined they… Unnecessary operational costs Decreased loyalty Interchange loss Lost revenues Called the issuer48% Source: TrustInsightSM survey of online consumers who had a CNP transaction declined, n=1,000 – January 2014 34% Used a different card 24% Used another payment method 14% Decided not to purchase
  • 9. 9©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Who does your consumer blame? Credit Network 40% Online Merchant 32% Issuing Bank 28% They blame you… Source: TrustInsightSM survey of online consumers who had a CNP transaction declined, n=1,000 – January 2014
  • 10. 10©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. TrustInsightTM Improving customer service and loyalty
  • 11. 11©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Birds of a feather... Security blanket post EMV 4 3 Reduced operational costs 1 Better customer experience 2 More profitable
  • 12. 12©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Customer is king Don’t let the perceived lack of trust ruin your most important relationships…
  • 13. 13©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Portfolio of 100M cards: ► ~$500M in added traffic ► ~$10M in interchange ► ~$10M in APR fees  Reclaiming unwarranted declines ► ~$120B transactions declined ► ~$40B were legitimate Who doesn’t want to make more $? …high level estimated benefits between $30M and $295M/year…“ – Top-10 issuer on value with 10% salvage rate and 10% merchant adoption rate ”
  • 14. 14©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Drive down operational costs Less complaints. Less overall cost.
  • 15. 15©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Reduce additional validation checks during checkout  Security blanket to curb CNP fraud losses post EMV  Allows good customers through when CNP models will tighten up post EMV You’ll be in a more secure place
  • 16. 16©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  CNP fraud rose with EMV adoption in Europe  U.S. is the next market to adopt EMV by 2015  Reduce false-positives when fraud strategies clamp down eMerchants face trust issues post EMV chips
  • 17. 17©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Scattered customer data benefits no one earls.com Buying patterns Device used emporium.net Methods of payment Time online
  • 18. 18©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Holistic views benefits all Buying patterns Device used Methods of payment Time online earls.com Methods of payment Time online Buying patterns Device used emporium.net ✔
  • 19. 19©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Data sent one-way hashed SHA- 256 – never PII  Simple API for merchants and issuers – easy to integrate  No impact to customer experience, invisible  Participants benefit from pooled data’s network effect Trust… it’s a good thing
  • 20. 20©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. For additional information, please contact: Ori.Eisen@experian.com | @orieisen Hear the latest from Vision 2014 in the Daily Roundup: www.experian.com/vision/blog @ExperianVision | #vision2014 Follow us on Twitter
  • 21. 21©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Visit the Experian Expert Bar to learn more about the topics and products covered in this presentation.