Enhancing Client Trust: The Impact of Branded Calling in Financial Services

A financial advisor on the phone, with a smartphone screen displaying the name, logo, and message of a verified financial institution, demonstrating trust and professionalism.

How financial institutions can improve communication, reduce fraud, and strengthen relationships with branded calling solutions like First Orion’s INFORM®

In the financial services sector, trust is the cornerstone of client relationships. Effective communication channels are essential for processing transactions, addressing customer needs and preventing fraud. However, the rise in fraudulent activities has significantly impacted consumer confidence. According to the Federal Trade Commission (FTC), consumers reported losing more than $10 billion to fraud in 2023, marking a 14% increase over reported losses in 2022.

Branded calling emerges as a solution to this challenge, enabling financial institutions to display their verified name, logo, and, on some the devices, purpose of the call. This approach not only enhances transparency but also rebuilds trust in client communications.

Challenges in Client Communication

Declining Answer Rates

Clients are increasingly hesitant to answer calls from unknown numbers due to the prevalence of spam and scam calls. A study by the Pew Research Center found that 80% of Americans avoid answering unknown calls. This hesitancy can lead to missed fraud alerts, delayed loan approvals, and ignored customer service follow-ups.

Escalating Fraud and Spoofing Risks

Scammers have become adept at impersonating financial institutions, leading to significant financial losses. The FTC reported that imposter scams resulted in nearly $2.7 billion in losses in 2023.

Operational Inefficiencies

Unanswered calls necessitate repeated outreach efforts, increasing operational costs and delaying critical communications. A McKinsey & Company study highlights that streamlining customer communication processes can reduce service costs by 25-50%.

What Is Branded Calling?

Branded calling enhances traditional phone interactions by displaying verified caller information on the recipient’s device, including the financial institution’s name, logo, and the call’s purpose. This transparency fosters trust and encourages customers to engage with their financial service providers.

How Branded Calling Works

  1. Verification: Solutions such as INFORM® by First Orion authenticate the caller’s identity, ensuring the displayed information is accurate and secure.
  2. Customization: Institutions can tailor the displayed information to provide context, such as “Fraud Alert” or “Account Update,” enhancing the relevance of the communication. This can be updated within the Caller Name area and a “Reason for Call” area on some devices.
  3. Logo: Branding your outbound call with a logo is the very definition of putting your brand front and center, and it instills confidence beyond measure for the person you are calling. Implementing First Orion’s advanced call authentication is the first step to INFORM with Logo.
  4. Integration: Branded calling solutions integrate seamlessly with existing telecommunication systems, facilitating easy adoption without significant infrastructure changes.

Benefits of Branded Calling in Financial Services

Improved Client Trust and Engagement A 2022 survey by Transaction Network Services (TNS) revealed that 64% of consumers are more likely to answer a call when the business name or logo is displayed, and 76% of consumers said they would answer a branded call from their bank if the brand name or logo appeared on the incoming call screen. These insights highlight the importance of branded calling in improving trust and engagement, particularly for financial institutions.

Enhanced Fraud Prevention

Branded calling reduces scammers’ ability to impersonate financial institutions, preventing fraud and improving security. Solutions like First Orion’s advanced call authentication provide additional layers of trust. You can even take this a step further and implement First Orion’s SENTRY™ solution to eliminate spoofed calls through a unique blocking service on the carrier networks.

Operational Efficiency

Higher answer rates reduce the need for follow-up calls, improving resource allocation. Financial institutions can achieve operational savings while ensuring timely resolution of client concerns.

Increased Customer Satisfaction

Clear, verified communication enhances the customer experience, fostering trust and long-term loyalty.

Case Study: Mortgage Lender Success

A top-tier mortgage lender partnered with First Orion INFORM® to combat fraud and improve client engagement. The results were transformative:

  • 90% Increase in Customer Engagement: Customers were more willing to engage, recognizing the legitimacy of the calls.
  • 26% Increase in Answer Rates: More customers picked up the phone when they recognized the branding.
  • 16% Decrease in Hang-Ups: Longer conversations and fewer hang-ups led to quicker resolutions.

This partnership not only improved communication metrics but also enhanced overall efficiency and productivity across the lender’s call center operations. Read the full case study here.

Implementing Branded Calling in Financial Institutions

  1. Partner with a Trusted Provider: Choose solutions such as First Orion INFORM® for advanced verification and customization features.
  2. Customize Messaging: Tailor call labels to align with the purpose, such as “Fraud Prevention Team” or “Loan Services Department.”
  3. Monitor and Optimize: Use analytics to measure the impact of branded calling, making refinements based on client engagement data. Consider implementing AFFIRM reputation monitoring to ensure your business calls are received with trust.

Today’s business environment is full of fraudulent activity that erodes consumer trust, branded calling offers financial institutions a robust tool for transparent and reliable communication. By improving client engagement, reducing fraud, and enhancing operational efficiency, branded calling lays the groundwork for stronger, long-lasting client relationships. To learn more, visit First Orion’s Financial Services Solutions.

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