Electronic banking and payment systems are on the rise in Mexico and other Latin-American countries, with statistics showing significant growth of these channels. According to our recent study, “Views of Latin-American Consumers on Electronic Fraud”, mobile banking adoption in Mexico today shows an increase of 17% when compared to 2013; and even the country’s social security payment system currently employs electronic platforms. Electronic payment channels are truly transforming the financial business dynamics in the region, stimulating the migration towards optimized and ever-present banking.
Nevertheless, as with all new-fangled technologies, there are certain challenges that must be addressed. Complaints derived from online and mobile banking platforms increased 19% between 2011 and 2014, moving from 587,593 to 698,732 (according to Condusef). This challenge is unavoidable and bank’s response must transcend the country’s regulations and laws, because in the current legal framework, financial institutions cannot be held liable for losses generated by electronic fraud attacks. In many instances, banks have stepped up and decided to cover the losses on their own, in order to retain clients and stop them from leaving for another institution.
The chief Mexican public and private institutions are focusing intently on the consolidation of electronic banking systems. To achieve this goal, banks must implement procedures aimed at mitigating fraud and managing risk, creating a conscious corporate culture that favors businesses and fosters trust among clients and institutions. Typically, users act under the premise of “you protect me, I choose you” and assume it as a non-negotiable factor. This condition forces institutions to armor their platforms with cutting-edge anti-fraud solutions, including two-way, dynamic authentication, transaction monitoring, interactive notifications, and educational campaigns designed for users. Lastly, participants must also adopt a communication system that allows them to notify competent authorities if needed. All of this will permit institutions to accurately identify risk patterns and fraud vectors in order to establish the corresponding prevention and remedial measures that will keep their businesses and users safe.