Identity Fraud in Focus quarterly report
8 min
As financial experts are aware — banks, credit unions, and wealth management firms face increasing competition from fintech startups and tech giants. In fact, 70% of banking experts predict that by 2025, more than 50% of customers will open a new financial relationship with a fintech and/or big tech provider.
Financial institutions looking for new ways to bring value to their customers, protect their customers’ well-being, and add new lines of revenue, can do all that and more by implementing Allstate Identity Protection as an offering.
The challenges
Identity fraud is surging
After what seemed like a hopeful decrease in identity fraud in 2020, 2021 turned out to be the worst year on record for identity fraud in the past decade. Nearly 6% of all consumers experienced fraud incidents, up from 3.8% in 2020. All told, American consumers lost $52 billion to fraud and scams in 2021.
Generational expectations are changing
Nearly half of Generation Z and a third of Millennials value using digital platforms specifically to integrate financial wellness tasks instead of convenience or leisure. Fifty percent of Baby Boomers and older, however, have no interest in a “super app” that would integrate their digital lives, including finances. Younger generations are also more likely to switch banks; nearly half of those under 55 would make a change to get access to better digital features.
As Millennials and Generation Z progressively make up more of the banking customer base, banks need to offer the digital solutions that integrate the financial wellness these consumers seek.
Financial institutions need to differentiate themselves
To retain current customers and lure new ones away from competitors, banks need to differentiate their services. Consumers are aware of how vulnerable their personal information is, and rank security of that information as the top factor in their choice of a financial institution.
Banks need additional revenue streams
To gain financial advantages, banks are always looking to leverage new revenue streams. Allstate Identity Protection offers flexible ways to implement this. Some clients embed it as a benefit in premium accounts to entice upgrades. Others offer it to their customers as a paid monthly subscription.
Add value for your customers
By adding valuable features, financial institutions of all sizes can attract new customers and retain their current ones by continuing to add value with an identity theft protection offering.
The customer experience is crucial
The higher a bank’s customer satisfaction score, the greater influence they have in getting customers to engage in a desired behavior, such as using an app or continuing the banking relationship.
Additional opportunities for customer engagement help improve the customer experience, an important factor in choosing and remaining with a financial institution. Don’t cede the opportunity to become more central in a customer’s life by allowing them to go elsewhere for identity theft protection.
A gap in expectations
A whopping 77% of consumers feel that financial services should do more to protect accounts from fraud. And 60% think it is their bank’s responsibility to make them whole after identity fraud losses.
This gap between expectations and reality can severely harm the customer relationship. Allstate Identity Protection’s preventative solution can help increase customer satisfaction and engagement.
The solution
Track record of satisfaction
Allstate Identity Protection has protected clients for nearly 15 years and boasts a 98% post-remediation satisfaction score. Our clients — including a third of the Fortune 500 — trust us with the security of their members and employees. Our dedication to helping customers while providing a satisfying experience reflects positively on you and your brand. Human resolution
Nearly 50% of people reach out by phone when they need help. The human touch in resolving complicated matters like fraud or identity theft is crucial to a positive experience during what can be an incredibly stressful time.
Allstate Identity Protection offers white glove customer care so your institution doesn’t have to allocate additional resources to resolve fraud or identity theft. Our experienced remediation experts are available by phone 24/7.
Seamless customer experience
At client request, we create dedicated phone numbers and scripts to ensure your customers maintain engagement with your brand throughout the entire resolution process.
Dedication to security
Allstate Identity Protection is PCI compliant and maintains SOC 2 Type II compliance.
We follow strict protocols on who can view customer data. We do not share customer data or solicit to customers.
The results
High activation rates
When put forward as an optional offering, we regularly see activation rates of nearly 20% — with even greater numbers when paired with our Security Pro resources.
Very low incidence of fraud
Less than 1% of Allstate Identity Protection customers fall victim to identity fraud.
For more information about how Allstate Identity Protection helps financial institutions build better client relationships, contact us at partner-sales@aip.com. Together, we can help you provide a more comprehensive security solution — so your members can feel protected and empowered.
2022 Javelin Identity Fraud Study, “The Virtual Battleground”
LIMRA, Financial Fraud and Retirement Accounts Report, 2018
Javelin Strategy & Research, “Javelin Identity Fraud Study,” 2022
Allstate Identity Protection member data