Credit Union Times recently published an article by Jeff Harper, FIntegrate Technology’s Chief Growth Officer. The article explores how credit unions can optimize their dispute resolution processes. Read an excerpt below:
Dispute management is a critical aspect of financial services, both for identifying fraud and mitigating financial crimes. The benefits of effective dispute management include fraud prevention, minimizing friction with members, and reducing time and expenses. However, resolving disputes using a manual process is typically costly and complex.
Chargeback volumes are expected to surge to 337 million by 2026, a staggering 42% increase from 2023, according to a recent report from Mastercard. The costs associated with settling these transaction disputes are massive, costing billions each year, and the burden of debt recovery is often carried by the financial institution. The exact number of unauthorized transactions can fluctuate annually, but millions of unauthorized transactions occur each year, resulting in substantial financial losses for consumers and financial institutions.
By using automated dispute management, credit unions can improve processes to manage disputes effectively, without exhausting budget or resources.
When evaluating your current dispute management approach, there are three key considerations for automating the process without exhausting a credit union’s budget or resources: streamlining dispute workflow with centralized management, improving productivity, and maintaining regulatory compliance.
Streamlining Dispute Workflow with Centralized Management
Centralized management of dispute workflows is one of the most effective ways to enhance dispute management. This approach reduces the risk of defaults in disputed transactions and significantly cuts down resolution times.
Traditionally, addressing unauthorized transactions is a laborious task, requiring extensive documentation, initiating return requests, meticulous tracking, resolution, and communication with stakeholders. These requirements not only consume valuable time but also pose a significant challenge to providing seamless member support.
If a credit union is currently using spreadsheets and other manual processes to manage disputes, swapping to a centralized system guarantees better tracking of disputes, ensuring that each case is handled efficiently and effectively.
By utilizing a unified platform, credit unions can manage and document all aspects of dispute resolution from a single point, making it easier to monitor progress and identify any bottlenecks that may arise. It also saves time and frees up human expertise to do higher-level projects.
An example of how automation resolves cases quickly is through streamlined analysis and resolution for transactions of all types, including debit, wire, ATM, credit card, and check transactions. By leveraging machine learning algorithms and advanced data analytics, automated systems can quickly identify patterns and anomalies that may indicate fraudulent activity.
These systems can automatically flag suspicious transactions for further review, reducing the time it takes to detect and respond to potential fraud. Additionally, automation can handle the extensive documentation required for each case, ensuring that all necessary information is collected and organized efficiently. This not only speeds up the resolution process but also enhances the accuracy and consistency of dispute management.
In addition, automated systems can integrate with existing financial platforms, providing real-time updates and seamless communication between different departments, which further expedites the resolution of disputes.
Improving Productivity
Manual data entry across multiple systems can lead to errors and decreased productivity. By automating dispute management, credit unions enhance efficiency and reduce human errors, which boosts overall productivity.
Automation can take over repetitive tasks, allowing staff to focus on more complex issues that require human intervention. This not only speeds up the dispute resolution process but also improves the accuracy of the data being processed.
Furthermore, automation tools can provide valuable insights and analytics, helping credit unions to identify trends and areas for improvement in their dispute management processes…
To gain valuable insights on the strategies that leading credit unions use to enhance their dispute resolution, we encourage you to visit the Credit Union Times website. There, you’ll find the full article that Jeff wrote, discussing how automation and innovative technology are revolutionizing dispute management in the credit union sector.
Jeff Harper is Chief Growth Officer for FIntegrate Technology, a Birmingham, Ala.-based provider of software for financial institutions.
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