The Challenge

In 2018, the bank restructured fraud and card claims to centralize them under corporate security. At that time, the highly manual and inefficient Reg E claims process utilized at least eight different systems. The analyst processing the claim had to enter the same information into various systems, generate manual tickets for claim credits, and individually produce letters. Customers filing claims had to come into a branch in order to sign an affidavit. 

As a first step to improve the process, the corporate security team built an in-house system to accept dispute claims by phone. However, front line staff were still required to key everything into a declaration without any visibility into the progress of existing claims. Claim submission time was averaging 22 minutes, creating a strain on resources and a less than ideal customer experience. The bank was constantly adding resources to keep up with the growing volume of debit card disputes. 

The senior vice president and director of corporate security saw that the in-house system had helped, but wasn’t enough. In order to remain compliant to Reg E’s ten day period in consideration to the volume of claims, the bank had chosen to automatically credit disputes below $500. Bank growth would only result in increased dispute volumes. This led management in search of a dispute claims partner to replace their strained, in-house solution.

The Solution and Benefits

The bank partnered with FINBOA to centralize their dispute management process on a single platform and automate the process for fast, accurate and compliant dispute resolution. FINBOA stood out as a solution that could address the bank’s major pain points with their strong spirit of partnership and flexibility, as well as an unmatched timeline to have the solution up and running. 

Before implementing FINBOA, the bank had thirteen people focused on disputes that could barely stay ahead of the volume. They now have eight people that can easily manage spikes in dispute claims. It is no longer necessary to key data into multiple systems. Accounting credits, debits, and reversals are now completely streamlined. 

“Tracking is easier, reporting is easier, compliance is easier, even our analysts love FINBOA. Training is easier now as well. The learning curve before FINBOA’s solution was 3-6 months. New hires are now processing claims within a few weeks. In the future, we hope to leverage the FINBOA Bot to integrate with the chargeback system and drive additional efficiency gains. 

Claim processing time has dropped by about 70 percent with FINBOA’s solution in place, allowing the team to truly investigate disputes and stay well ahead of compliance deadlines. The $500 chargeback threshold is now $20. I can’t speak highly enough about FINBOA and what it has done for us. It has been a great partnership.”

FINBOA’s Analytics and Process Automation platform is ready to go with Reg E workflows for Debit Cards, ACH, ATM, Zelle, Bill Pay and other EFT processes. Financial institutions looking to centralize and automate all payment dispute management on a single platform can add Check Fraud, Stop Payment and other workflows. The Reg E solution includes Reg E consumer liability calculators, alerts, e-Signature from any device, GL integration for same-day customer credits, centralized document repository for easy audits and customer notice templates to maintain consistency and compliance across all disputes.


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