3.50pm: Good Customers vs Bad Actors: Should Lenders Accept More Friction to Fight Fraud? | Debate

Member debate

Every control that stops a bad actor also slows down a good customer. As fraud grows more sophisticated and regulatory expectations around scam prevention tighten, lenders are being asked to verify more, check harder and move slower — at the same time customers expect approval in minutes.

This member debate puts the trade-off to the room.

The proposition: "Lenders should accept more customer friction if it means significantly reducing fraud."

For. More friction is justified. Stronger verification, additional checks and slower processes are necessary to protect customers, lenders and the financial system. Customer experience cannot come at the expense of security.

Against. Excessive friction penalises legitimate customers, drives abandonment and undermines the speed and convenience that differentiates non-bank lenders.

Two teams of AFIA members argue it out, with the audience voting before and after. Come with a view — you may not leave with the same one.