Tokenization Mandate Desicion

GW
by Geoffrey Wagner2 views·Updated Aug 8, 2021
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  1. Hello. Welcome and thank you for joining me today, fraud
  2. prevention is a constant focus in the financial industry.
  3. Both financial companies like Fiserv and governments invest considerable resources
  4. to prevent and mitigate fraud.
  5. One of the methods for mitigation of fraud is to
  6. encourage the usage of mobile wallets.
  7. A mobile wallet is like a physical wallet, but in
  8. electronic form in a mobile device application cardholders are then
  9. able to use their cards in electronic form to transact
  10. with merchants while the physical cards can be kept somewhere
  11. safe. The systems are less susceptible to fraud and provide
  12. considerable convenience for merchants and consumers.
  13. Physical cards are inherently more susceptible to fraud either through
  14. physical loss or theft or the information on the card
  15. being stolen through various means.
  16. The physical card contains all of the necessary information to
  17. access the holder's bank account and as such serves as
  18. a significant weak link in fraud prevention.
  19. Governments are also seeking to encourage the adoption and usage
  20. of mobile wallets to ease pressures on fiat currency systems,
  21. including scarcity fraud and counterfeiting.
  22. Electronic or tokenized card is represented algorithmic lee by a
  23. token of several digits that does not expose any of
  24. the cards actual information throughout the process of the transaction.
  25. The tokenized card is also behind the additional security of
  26. access to the app, the phone, and even if access
  27. is gained to both of these, the information is still
  28. obfuscated and truncated and requires several layers of security.
  29. So given that cardholders and merchants often find the mobile
  30. wallet more convenient and that they are less susceptible to
  31. fraud than cash or physical cards.
  32. Should Fiserv mandate tokenization and mobile wallets for all clients
  33. to mitigate fraud.
  34. This is a crucial decision for Fiserv in many ways.
  35. First, this decision would help mitigate fraud and associated expenditures.
  36. Next mandating, this service would generate increased revenue for Fiserv.
  37. Mandating would help drive consumer and merchant adoption rates for
  38. mobile wallets.
  39. But if I serve mandates mobile wallets, this will result
  40. in increased service costs for Pfizer clients.
  41. Even with the potential fraud mitigation for clients, they could
  42. be driven to competitors due to higher service fees and
  43. resource consumption from implementation projects.
  44. There are a lot of factors influencing such a crucial
  45. decision and it needs to be made carefully.
  46. People have various weaknesses that contribute to poor decisions.
  47. So to facilitate the best decision, we must use a
  48. structured decision making process that mitigates pressures to arrive at
  49. the most optimal choice to such processes are the audio
  50. loop and the room.
  51. Yet in jago model first few to loop buddha 00
  52. D. A.
  53. Stands for observe orient decide act and was developed by
  54. Air Force Colonel John Boyd as a decision model to
  55. be used by fighter pilots and the military.
  56. This was expanded as a tool to help not only
  57. the military, but businesses as well.
  58. The key point of this decision making model is that
  59. it is cyclical in nature and allows for the decision
  60. maker to reassess and adapt as the environment constantly changes.
  61. This allows for great flexibility and constant adaptation that allows
  62. the decision maker to stay ahead of their opponent.
  63. Hence the military angle.
  64. This is valuable in business as it can be used
  65. to judge intentions of competitors and customers and adapt the
  66. organization as necessary or to help in making strategic decisions
  67. on screen.
  68. You can see a representation of the Utah loop and
  69. each of the steps Were we to use this model,
  70. we could implement mobile wallet mandates for some customers such
  71. as those over 100,000 cardholders.
  72. We could then continually observe the results of those mandates
  73. orient those observations by comparing two goals of reduce fraud,
  74. client retention and revenue generation, then decide how to better
  75. achieve each of those goals and act on those decisions
  76. by either expanding reducing or eliminating the mobile wallet mandates
  77. we could consider other factors through this model as well
  78. like Fiserv implementation project execution capacity, merchant adoption rates and
  79. merchant capacity to serve via mobile wallets.
  80. Our other model is the room yet in Giago model,
  81. The room yet in Giago model is a 1988 update
  82. to the earlier room yet in model developed in 1973,
  83. this model is designed to help a decision maker better
  84. understand how to make the decision in terms of subordinate
  85. and organizational support and involvement.
  86. In said decision, the decision maker answers the series of
  87. questions that we can see on screen and arrives at
  88. one of several outcomes that outline who should be involved
  89. in the decision and to what degree this improves efficiencies
  90. and decision making.
  91. By ensuring that the decisions are made in the right
  92. manner. This is based on the importance of the decision
  93. definition of the problem, availability of information, support for or
  94. against the decision in within the organization.
  95. Conflict potential between team members and the necessary involvement of
  96. various teams and team members for our scenario.
  97. The results of running our decision through the room Yet
  98. in Giago model suggests that the decision on mobile wallet
  99. mandates Advisor should be made by a stakeholder group.
  100. Together, this group would need to include representatives of several
  101. groups within Fiserv to ensure the right decision is made.
  102. The decision itself is important.
  103. As mentioned earlier, the execution and communication of the mandates
  104. would choir require a lot of teamwork.
  105. Therefore, team commitment is important.
  106. One decision maker does not have enough information to decide
  107. on the mandates alone.
  108. The problem is well understood, but the team is not
  109. going to support a decision taken without their input.
  110. And lastly, although the team is cohesive and seeking the
  111. same goals, there could be conflict amongst the team over
  112. this decision.
  113. This would be based on resource availability, customer displeasure, customer
  114. service and fraud mitigation effectiveness in the long run.
  115. The two methods we have discussed today have different approaches
  116. to decision making and both apply to the decision by
  117. service trying to arrive at in regards to tokenization and
  118. mobile wallet mandates for fraud mitigation.
  119. Right. The UDA loop is used to assess options and
  120. decide based on data compared to goals.
  121. The cyclical nature of the Eu de loop allows for
  122. flexibility and continuous adaptation to a constantly changing environment.
  123. Where is the room yet?
  124. In Jago model assists in providing insight on how the
  125. decision should be made for our specific scenario regarding mandates
  126. for digital wallets.
  127. The UDA loop would facilitate testing well, the mandate could
  128. be rolled out on a small scale and then Fiserv
  129. could easily adapt the mandates as necessary.
  130. This would mitigate risk by helping Fiserv remain flexible if
  131. issues arise in various areas of mobile wallet mandates such
  132. as client loss, reduced capacity for other projects and many
  133. other factors.
  134. The room yet in Giago model facilitates our decision about
  135. mandates by ensuring this decision is made in the right
  136. manner with the right stakeholders involved.
  137. However, this model does not necessarily give us the actual
  138. decision or the best route or the most optimal choice
  139. on whether to implement mobile wallet mandates or not.
  140. It could be used to arrive at an initial decision
  141. and then repeated later to judge how new decisions must
  142. be made.
  143. However, for our purposes, the best model would appear to
  144. be the UDA loop, not only for this decision, but
  145. similar future decisions.
  146. The flexibility of the Utah loop would allow Fi served
  147. continuously, monitor and predict both client and competitor intentions in
  148. relation to wallet mandates as well as those of internal
  149. stakeholders. This will facilitate repeated high quality decisions and the
  150. ability to adapt as new information is received through the
  151. mobile wallet mandates various faces.
  152. Thank you very much for joining today.