Fraud and confidence play a role in cross-sell

When customers are made aware of the fraud prevention strategies their financial institutions use, they have more confidence in those institutions and become more loyal customers. Financial institutions that effectively communicate their efforts to prevent fraud and protect customers create a shared understanding of values and increase the likelihood customers will cross-buy other products and services from them.

Those were among the main points of my previous blog post that discussed the results of an academic study called “The Impact of Fraud Prevention on Bank-Customer Relationships.” It compiled research from a number of different sources to arrive at those conclusions. The study’s authors – Dr. Arvid Hoffmann and Cornelia Birnbrich – believe their work is the first to establish an empirical link between customer knowledge of a bank’s fraud prevention measures and the quality of the bank-customer relationship.

Let’s look at some of the study’s other findings and the conclusions the authors were able to draw.

Customers willing to pay more

The level of concern that customers have about fraud is high enough that they will pay for services that provide additional protections for them. This very interesting conclusion has been borne out by subsequent research.