Callcredit Blog

The future started yesterday: Why the long term savings & investments sector needs to adapt to digital innovation

Fraud & Verification

shutterstock_382055176 John Legend observed, “The future started yesterday, and we’re already late,” and as such, the digital revolution has already happened. What we’re experiencing is the after party and I’ll tell you what, there are people here who were not invited.

We would do well to observe that this is not the domain of the teenager or technophile. Poll after poll tells us that the emerging markets go beyond the generation of tech and that the greatest growth comes from those discovering the simplification that technology brings in their middle to late years and beyond.

Consumers are here in their millions, young and old, rich and poor. Aided by digital innovators ranging from behemoths of retail to imaginative start-ups, consumers are rapidly changing and in their eyes, improving the way that they live. They are embracing technologies, devices and services that make everyday tasks such as banking, purchasing and even commuting quicker, easier and more efficient.

Now pensions and as a knock on effect the rest of investments, have been forced to act. Consumers have spoken and the regulator has acted so it is time that the pensions and long term investments sector joins the party and embraces the digital age and the innovation that it demands.

We relish digital innovation for the simple reason that it makes our lives better, which is why digital technologies have disrupted industry after industry—insurance, banking and now also investments. Digital technologies empower change driven by consumer demand. Unfortunately what it also empowers is the opportunist. The greatest discoveries often come with the greatest risks and in this case, the fraudster who when made faceless by the unstoppable digitisation of the relationship, becomes the greatest threat that brands, shareholders and of course, consumers will face.

They’re the ones lurking in the corners, without a ticket to show, because it was easy to get in to the party to celebrate the future when security was still stuck in the past. When your customer becomes just an IP address, a password or a thumbprint and their rights and expectations insist on full functionality, then those responsible for the enablement of that service must be prepared to embrace the defences necessary.

Most, however, have yet to adapt—beyond setting up a simple website or commissioning a mobile app. This is the door that lets the consumer in but without the appreciation of a unified approach to digital fraud controls and how to verify the source of the data we will never have the security necessary to keep the fraudster out. Our sector will likely reach its digital tipping point considerably faster than what it took the banking or general insurance industry. Those who move with alacrity and audacity will be the first to the feast that comes from digital channels and digital fraud controls.

The experience of other sectors repeatedly demonstrates that early movers often establish tough-to-trump positions and advantages. Experience also shows that many companies that are slow to adapt do not get a second chance.

Author: Devlyn Freeman

Leave A Comment

Your email address will not be published. Required fields are marked *