In this article, we’ll provide you with an overview of the challenges financial institutions face in regard to generating new revenue, cutting costs, and adding value, and how offering an identity restoration solution can help address these challenges.
With new financial technology startups and digital-only banks arriving each day—and add in constantly evolving customer expectations and behaviors, —banks, credit unions, and wealth management firms are facing new challenges.
Considering that 76 percent of consumers are likely to switch banks if they find one that better fits their needs, financial institutions need to bring value that consumers are looking for to retain customers, earn new business, and increase revenue.
As banks face new challenges, so do consumers, including dealing with identity theft. With over 18 million people impacted by identity theft in 2024, financial institutions have an opportunity to differentiate their offering and bring value to consumers by offering an identity restoration solution.
Consumer expectations are changing
One of the biggest challenges financial institutions face in reducing costs, driving revenue, retaining customers, and attracting new business is managing increasingly complex customer expectations.
The increasing prevalence of security threats like identity theft is driving significant changes in how consumers feel about financial institutions. In fact, 75% of consumers feel their banking service provider bears ultimate responsibility for protecting them against cybercrime and fraud. 28% of dissatisfied consumers wished their financial institution had offered an identity fraud expert and provided resolution times after an identity fraud incident, highlighting the expectation that a bank will provide specialized assistance to consumers after identity fraud.
And with Gen Z willing to switch banks two to three times more than previous generations to get the services they want, it’s clear that to meet consumer expectations, financial institutions need to build some form of fraud protection into their services.
The need to differentiate their services
To retain current customers and lure new ones away from competitors, banks need to differentiate their services. While financial institutions often offer services like checking accounts, savings accounts, loans, wealth management services, and more, providing other services that protect customers’ financial health is key to differentiating your organization.
Considering that consumers are aware of how vulnerable their personal information is with 69% of consumers ranking fraud protection in their top three considerations when choosing a financial account, providing additional services like identity restoration can set your organization apart.
Cutting costs and improving profitability
Finding ways to generate more income is a top priority for all companies. Although financial institutions often provide things like credit monitoring and address fraudulent charges when they happen, they typically don’t offer identity restoration.
And when an identity theft incident occurs, their customer service teams can be bogged down by customers calling in with questions about identity restoration, what steps they should take to restore their identity, and more.
This can lead to an increase in costs and reduce the effectiveness of their teams. In fact, 31% of banks said the incidents cost them on average $479,000 or more, with 44% of that cost coming from business disruptions.
Addressing the fallout from identity theft
In 2024, identity theft losses soared to $27 billion. And as identity theft losses reached new heights, consumers’ finances are in greater danger than ever. In fact, in 2023 33% of general consumers reporting to the Identity Theft Resource Center had to take out a loan to cover the costs related to the incident, while 28% had to borrow money from friends and family.
When consumers struggle financially due to identity theft, they aren’t the only ones that suffer. These financial struggles can result in customers unable to make payments on credit cards, loans, and more, and may impact their ability to pay for other financial services. The faster a customer has their identity theft incident resolved, the sooner they can restore their financial health and meet their debt and loan obligations.
How an identity protection solution can help
An identity restoration solution provides financial institutions with the opportunity to add additional value to their services, generate revenue, cut costs, meet changing consumer expectations, and best of all, help customers succeed.
Help customers avoid the fallout from identity theft
If your customers are a victim of identity theft, that can put their entire financial situation in jeopardy. By providing identity theft protection, you can help ensure that the fallout from an incident is minimized and enable your customers to continue making payments on loans, credit cards, and more.
Generate additional revenue and reduce costs
To gain financial advantages, banks are always looking to leverage new revenue streams. Identity restoration can be offered for free as part of an upgraded account, enticing consumers into upgrading their account and signing up for other bank services. By offering identity restoration as an optional upgrade, financial institutions can create additional revenue while providing consumers with the value that they’re seeking.
Differentiate your services—and your philosophy
Providing a specialized identity restoration solution that is backed by a reputable company lets your customers know that you’re taking proactive steps to protect their finances and their future in the event of an identity theft incident. This not only sets your organization apart from other financial institutions in terms of your services but also sets your organization apart in terms of your organization’s core values while building customer loyalty.
Close the expectations gap
The message from consumers is clear: they want their financial institutions to do more to protect them against fraud, and in the case they do become a victim of fraud, help them recover. By providing identity protection, your organization can help to close the expectations gap by giving customers what they’re craving, that extra layer of protection and financial security to ensure their lives aren’t derailed by a fraud incident.
What to look for in an identity restoration solution
To get the most out of an identity protection solution, you need a solution that will deliver the results and level of service that will give your customers the value they expect, including:
Full-service identity restoration: Start to finish identity restoration services from a U.S.-based, certified restoration team that has high customer satisfaction scores and provides complete visibility into the restoration process.
Personalized education: Helpful resources that help customers understand how to avoid scams and fraud schemes.
Additional coverage for vulnerable family members: Additional coverage for customers’ senior family members and children who are particularly at risk for identity theft.
Identity and financial monitoring: Extra monitoring features after an identity fraud incident helps to keep customers’ identities and finances safe and prevent further identity theft from happening.
Proven experience: Select a trusted, reliable provider whose team has proven experience in providing quality identity restoration services .
If you’re ready to differentiate your services, grow revenue, cut costs, and help your customers succeed with an identity restoration solution, contact our team.
