The Convergence of CX and FX and The Impact to User Experience

By Rob Heidenreich, Vice President of Global Sales and Partnerships at Loqate

There's a significant trend among ecommerce companies occurring that is seamlessly integrated, nearly invisible to the customer and unseen by the end user.

They're integrating user experience (UX) with the financial and fraud experience (termed FX here), and considering both as integral parts of an engaging customer experience (CX).

The power of these solutions produces secure and captivating online experiences, converting buyers into repeat customers.

As consumers discover new FinTech-powered experiences, they expect the same level of user-experience in every product they interact with - irrespective of the industry. 

We see this with companies like Walmart, Amazon, Apple, Starbucks, and McDonald's. They are embracing solutions such as 'buy now, pay later' (BNPL) options exemplified by Klarna, payment solutions such as Bolt and Bold Commerce, fraud prevention tools from Alloy, IDology, and Ekata, and even fintech solutions such as cross-border payment products from companies like Mastercard. This is where CX and FX converge. 

These solutions not only reduce friction and fraud, but also enhance the consumer experience. 

Learning from Ecommerce 

Today’s consumers have high expectations for consistency and minimal friction across all channels. In fact, according to a study by IDology, 47% of the consumers surveyed said they would abandon a brand after two negative digital interactions. 

Ecommerce companies have known for years that an experience with minimal friction is pivotal.

Overly burdensome or complex verification procedures can lead to a poor user experience. This is why verification processes need to strike a balance between UX and compliance requirements. For instance, tools like type-ahead global Address Verification eliminate friction by simplifying address entry for the consumer while providing businesses with the most accurate customer data.

Clean, accurate, and properly structured data, captured on input, is not just about accurate deliveries. Ecommerce systems must integrate with other platforms and external data sources like  billing, CRM, CDP, fraud and marketing/personalization systems. 

Integrating address verification solutions into these systems not only improves CX - but helps improve data integration, data matching and data quality processes. This resolves differences in data formats and varying address data standards.

For example, Locate recently completed a study with a leading global FinTech company where Loqate’s Address Verification improved their accuracy by 7% in the US and between 13-47% internationally. The downstream impact of that 7% flows to other systems, and translates to enhancing data analysis and fraud models, improved customer data matching, as well as improving other business processes.

Beyond eCommerce 

The reality is, that the UX/FX challenge should be embraced within any application where an individual is being onboarded. This includes human capital management (HCM), payroll platforms, healthcare, and more. 

During onboarding, address verification plays a role in complying with the legal and regulatory requirements that accompany HCM and Healthcare solutions. Similarly, tax regulations require accurate employee addresses for proper withholding and reporting, while labor laws, immigration regulations, and benefits administration also require timely, accurate address information. 

Anywhere a new customer account is being created or updated, capturing accurate data and mitigating risks are top priorities. In this way, CX is second only to security when building today’s digital-first platforms.

Secure Experiences with Minimal Friction

As we navigate an increasingly digital future, the marriage of CX and FX will continue to play a pivotal role in defining business success. This is creating an opportunity for every product owner of any application to analyze its own CX to identify areas where they can embrace eCommerce learnings to create a frictionless experience. 

Companies that create an optimized, secure user experience that meets the ever-evolving demands of consumers will continue to stand out above the rest.