Quavo Report: Fraud Resolution Quality Now a Major Growth Issue for Banks as Trust Gap Widens

Quick Summary

Quavo's 2026 Trust in Banking Research Report reveals that fraud resolution quality has become the primary driver of consumer trust, with 69.9% of customers valuing the resolution process over the fraud event itself. This shift transforms dispute management from a back-office function into a critical growth and loyalty lever.

How Does Fraud Resolution Impact Bank Growth?

Fraud resolution quality is no longer just a compliance requirement; it is a fundamental driver of revenue and customer retention. According to Quavo's latest data, 61.3% of consumers report that a poor experience during a fraud claim has a meaningful impact on loyalty. When institutions fail to provide transparency and fairness, they risk significant churn and a reduction in their share of the customer's wallet.

• 69.9% of consumers prioritize resolution handling over the fraud itself.
• 61.3% of customers link poor fraud experiences directly to decreased loyalty.
• Year-over-year declines were noted in transparency and reporting ease.

What Are the Costs of Inefficient Dispute Management?

Financial institutions are facing rising operational costs due to friendly fraud liability and high volumes of invalid claims. The report finds that nearly four in ten customers have filed disputes they later realized were invalid, often due to poor merchant recognition. By implementing intelligent automation and better UX prompts, banks can mitigate these "accidental" disputes before they enter the costly manual review cycle.

"The 2025 data told us that fraud resolution is a trust issue,” said Joseph McLean, CEO and Co-Founder at Quavo. “The 2026 data tells us it is now a growth issue. Institutions that treat dispute operations as a back-office function are falling behind on transparency, fairness, and scam support. This research exists to give operational and revenue leaders the data they need to act. "

How Can AI Disputes Technology Improve the Customer Experience?

Modernizing dispute management through platforms like Quavo’s QFD® allows banks to resolve cases 26 days faster than the industry average. By leveraging intelligent automation, institutions can provide the speed and certainty customers now expect. This proactive approach not only reduces operational overhead but also turns a potentially negative fraud event into a moment of trust that strengthens the long-term relationship between the member and the institution.

FF NEWS TAKE:

This report confirms that the "back-office" era of fraud resolution quality is officially over. For years, banks treated disputes as a cost center, but Quavo’s data proves it is now a front-line competitive differentiator. In a market where switching costs are lowering, failing to master the dispute management experience is a fast track to losing high-value customers. Automation isn't just about efficiency anymore; it's about survival.