Optimizing Fraud Claim Reversals
CLIENT
Bancolombia
INDUSTRY
Bank & Fintech
AGENCY
Usaria, 2020
OVERVIEW
Managing fraud claims for credit and debit card transactions is a complex, time-intensive process. When a customer reports an issue, such as duplicate charges or unauthorized transactions, the complaint is filed with the merchant, who then notifies the bank to initiate the reversal process.
This procedure incurs significant costs, averaging $35 per claim, and requires navigating multiple systems and performing extensive manual data handling.
MY ROL
As the project lead, I spearheaded the design of a qualitative study to analyze and understand the existing fraud reversal process.
We collaborated closely with staff responsible for managing and investigating fraud claims, conducting interviews and observations to uncover pain points and identify opportunities for improvement. By examining their daily workflows, we gained valuable insights into their challenges and expectations, laying the foundation for actionable solutions.
KEY FINDINGS
The lack of automation required staff to handle each fraud claim individually, juggling multiple files and relying heavily on manual data entry. This process was further slowed by outdated systems and inefficient macros that frequently overburdened computer processors, creating delays and frustration.
To tackle these challenges, we mapped the entire fraud claim process, uncovering inefficiencies and identifying opportunities for improvement. Through our analysis, we discovered that 70% of the operation could be automated by integrating systems. Based on these findings, we proposed a unified platform designed to handle the majority of the process automatically.
The proposed system would streamline key tasks, including:
By automating these tasks, the platform would significantly reduce manual effort, improve efficiency, and minimize errors, offering a scalable solution to address the current pain points.
Evaluating the need for payment reversals.
Receiving and tracking updated requirements.
Reviewing case history and related documentation
Managing case submission and expiration timelines.
Business Value
The proposed unified software solution brings substantial value by automating the majority of the fraud reversal process. This automation minimizes manual handling and associated errors, enabling staff to concentrate on high-priority tasks. The streamlined workflow significantly improves processing time, reduces operational costs, and enhances the capacity to handle a higher volume of claims efficiently. For Bancolombia, these improvements translate into optimized resource allocation, increased operational efficiency, and the ability to deliver a better overall experience for both employees and customers.
ALL PROJECTS
Tec of Monterrey
Finkargo
Bancolombia
Colombian Government
THE CHALLENGE
Our challenge was to streamline and unify the fraud claim reversal process within a single application, improving efficiency and reducing costs. We spent an entire day with various stakeholders involved in this process to gain a deep understanding of their daily routines. Their workflow required constant switching between multiple platforms, with systems frequently crashing when retrieving information.
The staff had to rely on six different applications to process claims, often downloading data and performing manual manipulations. This fragmented approach resulted in high error rates and significant inefficiencies, highlighting the urgent need for streamlined solutions.