Reduced Risk Of Fraud

Evidence and data. Interviewees shared that implementing MX improved security compared with their prior tools, reducing the potential for fraud from digital channels. Prior to MX, some of their organizations used data tools that relied on risky techniques like screen scraping to capture customer data. Screen scraping involved risks like capturing private information, capturing more information than was necessary, and needing to be fixed almost any time a webpage layout changed.

Replacing legacy screen scraping methods with secure, API-based data access improved the security of the interviewees’ digital operations and reduced the risk of fraud from third-party technology vendors. By shifting to tokenized, permissioned data sharing, the security of external account linking — one of the more vulnerable entry points in digital banking — significantly improved. The interviewees estimated that this likely reduced the risk of fraud via that vector by about half.

The director of IT services at a multinational bank emphasized that this improvement in security was a key factor in selecting MX and contributed meaningfully to customer trust and regulatory confidence. They also noted that this reduction in risk helped avoid potential fraud-related losses and supported their bank’s broader efforts to maintain a secure and compliant digital environment.

Modeling and assumptions. For the composite organization, Forrester assumes the following:

• Total annual fraudulent transactions are approximately 5% of revenues, or $1.5 billion.

• The total cost to the composite of $1.00 of fraudulent transaction value is $4.61.

• Third-party technology vendors are the vector for 21% of all successful fraudulent transactions.

• Data aggregators are the vector for 2% of third-party technology-originating fraudulent transactions.

• By adopting MX’s more secure infrastructure, the composite reduces fraud via data aggregation services by 50%.

Risks. The value of fraud prevention may vary with:

• The amount of fraud experienced currently.

• The mix of vectors for current fraud.

• The ability of fraudulent actors to respond to changes in security practices.

Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $30.7 million.

Reduced Call Center And IT Management Costs

Evidence and data. The interviewees shared that implementing MX helped their organizations reduce the volume of calls to their call centers. This was primarily achieved through improved transaction clarity, enriched data, and proactive insights that reduced customer confusion and the need for support calls. For example, the head of product at a boutique bank reported that MX’s data aggregation and transaction cleansing tools helped the bank reduce the amount of transaction-related calls to their call center by 80%.

The director of IT services at a multinational bank shared that MX’s transaction aggregation and enrichment capabilities helped reduce call center volumes by improving transaction clarity. Customers were less likely to dispute or question transactions when they were labeled clearly and consistently. This reduced total call center volumes by a couple of percentage points.

Lastly, the VP of digital at a bank holding company noted that, after an acquisition, new customers would call and complain about the lack of a particular digital transfer technology. After relaunching the service with MX, the organization saw a 90% drop in such calls.

By reducing the number of support calls, the interviewees’ organizations were able to lower operational costs and improve the efficiency of their customer service teams. Those organizations that previously used other tools for customer data insights, whether homegrown or from a third party, also found savings in decommissioning these tools.

Modeling and assumptions. For the composite organization, Forrester assumes the following:

• The call center receives 20 million calls annually.

• Of these, 15% are related to banking statements.

• The average cost per call is $5.

• By using MX, the composite sees a reduction in these calls of 50%.

• One legacy homegrown tool is decommissioned.

• The organization needs 0.5 FTEs to manage the decommissioned tool.

Risks. The value of reducing call center calls will vary with:

• The total annual number of calls.

• The percentage of calls about statements.

• The average cost of these calls.

• The number and ongoing costs of any decommissioned tools.

Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 15%) of $16.1 million.

Fewer Transaction Disputes

Evidence and data. Interviewees shared that implementing MX not only reduced the volume of customer complaint calls, but it also helped them recapture some otherwise lost revenues. By using MX’s transaction cleansing and enrichment capabilities, the interviewees’ organizations were able to present clearer, more accurate transaction data to their customers. The improved transparency of these transaction descriptions significantly reduced confusion: This not only reduced the need for customers to contact support for clarification but also reduced the amount of “friendly fraud” in the form of chargebacks initiated as a result of good-faith misunderstandings.

For example, the director of IT services at a multinational bank shared that they experienced a high volume of calls to the call center related to transaction disputes. Most of these disputes stemmed from customer confusion over the esoteric, automatic descriptions put on customers’ credit card bills. After implementing MX, the multinational bank reduced total credit card transaction disputes by about 8%, enabling them to retain their APR earnings on more transactions.

Modeling and assumptions. For the composite organization, Forrester assumes the following:

• The composite has 8 million credit card customers.

• Each customer charges an average of 257 transactions per year.

• The composite experiences a dispute rate of 2.0%, which would grow to 2.3% by Year 2 and 2.7% by Year 3 if no action were taken.

• With MX, the composite reduces disputes by 8% and stems the tide of dispute growth to 2.1% by Year 2 and 2.2% by Year 3.

• Chargebacks form 74% of disputes; 55% of these are successful chargebacks, where the transaction is removed from the customer’s card.

• The average value of a chargeback is $110.

• The average percentage of card spend that becomes a carried balance is 3.5%.

• The average APR per card is 23.37%.

Risks. The value of reducing transaction disputes will vary with:

• The current number of annual disputes.

• The number of disputes resulting in a successful chargeback.

• The average value of a chargeback.

• The average growth in carried balances and the average APR charged.

Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.8 million.

Unquantified Benefits

Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:

• Top-line benefits. The interviewees noted that implementing MX helped their organizations unlock new revenue opportunities by enabling more personalized marketing, improving digital engagement, and enhancing cross-sell effectiveness. For example, the head of product at a boutique bank shared that MX-powered customer insights contributed to a significant increase in credit card originations and CD portfolio growth. Similarly, enriched data enabled their bankers to better understand clients’ needs, resulting in cross-sell and deposit growth among 25% of their customers.

The director of IT services at a multinational bank explained that MX’s aggregation and transaction cleansing capabilities allowed the bank to identify external accounts and offer more competitive products, such as lower-interest credit cards. This improved marketing segmentation and personalization, which in turn supported revenue growth through better product targeting. The same interviewee emphasized that MX’s data infrastructure helped inform product design and customer engagement strategies, further contributing to revenue expansion.

• Improved compliance and regulatory risk management. The interviewees noted their organizations improved compliance and regulatory risk management by enhancing the clarity and accuracy of transaction data. Prior to implementing MX, the interviewees’ organizations suffered from unclear or miscategorized transactions, which increased the risk of compliance issues. By leveraging MX’s data cleansing and enrichment capabilities, these organizations were able to reduce ambiguity in their transaction records and improve audit readiness. The head of product at a boutique bank shared that better categorization and labeling contributed to better compliance with disclosure requirements. The director of product management at an insurance and banking company noted that MX’s help with building internal analytics and reporting capabilities was essential for meeting regulatory expectations.

• Improved employee collaboration. The interviewees noted that MX helped them improve internal collaboration and alignment across digital, product, and marketing teams. By providing enriched data and actionable insights, MX enabled cross-functional teams to work from a shared understanding of customers’ behaviors and needs. For example, the head of product at a boutique bank shared: “We were able to identify external accounts and tailor offers that resonated with customers. That kind of insight brought our teams together around a common goal.”

Flexibility

The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement MX and later realize additional uses and business opportunities, including:

• Improved competitiveness. The interviewees shared that their partnerships with MX have helped their organizations remain competitive in a rapidly evolving financial services landscape. Several noted that MX’s tools enabled them to deliver more modern, data-driven experiences that rival those of larger institutions. For example, the head of product at a boutique bank said, “We’re a relatively small institution, but MX really helped us deliver a digital experience that feels on par with the biggest players in the market.”

• Organizational agility and time to value. The interviewees also highlighted how MX helped their organizations move faster, test more quickly, and respond to market needs with greater agility. The director of product management at an insurance and banking company noted: “It would have taken us a year to develop a few insights. With MX, we launched with insights in six months and scaled it from there.” Another interviewee shared that their team was able to implement a new mobile banking experience in under a year — despite it being a brand-new product — thanks to MX’s co-development support and existing infrastructure.

Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach).