Academic journal article ABA Banking Journal

How Malware on Customer Devices Threatens the Bank

Academic journal article ABA Banking Journal

How Malware on Customer Devices Threatens the Bank

Article excerpt

For centuries, banks have invested heavily in delivering a safe, reliable banking experience to their customers. From the bull to the vault, banks have worked hard to create a sense of security to ensure loyalty over time. But as the customer preference shifts increasingly toward online and mobile, concentrating solely on the brick-and-mortar banking experience is no longer enough: banks must now focus creating a trusted, delighting and annoyance-free digital experience.

Creating a safe and frictionless digital environment is the main challenge banks face as they re-evaluate their priorities and resources. Along with many new challenges and variables to consider, trust and loyalty are (as they have always been) the key elements in this comprehensive and extensive re-evaluation process.

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As banks work to remove the friction, a recent study from Bain and Company lays out the different ways in which customers engage with their banks and their likelihood to annoy and likelihood to delight: online is less likely to annoy, whereas mobile is the most likely to delight (see the visual below).

And it's not only about "selling" via the digital journey. Banks need to focus on removing the friction and engaging customers early on in the digital journey, given that two-thirds of customers base their decisions on the quality of experience along their journey.

Keeping all this in mind, there is a new element in this ongoing challenge that banks have to consider. According to research, 15-30 percent of all online and mobile users are infected with client-side injected malware, or CSIM, which poses a massive threat to trust and loyalty. What's unique about CSIM is that it runs on customers' devices, bypassing all server-side security shields, thus remaining totally invisible to banks.

CSIM has two major implications on customers' trust and loyalty by significantly affecting both the "annoyance" and the "delight" aspects of the digital journey: CSIM enables third parties to inject ads, banners and pop-ups directly on the digital asset of the bank, on both desktop and mobile, without the bank's approval. …

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