In the quickly evolving financial landscape, issuing financial institutions face growing challenges in managing disputes, fraud, and customer expectations. While many institutions maintain the status quo, upkeeping legacy systems and following decades-old paradigms, the true cost of inefficient dispute resolution extends beyond just operational expenses.
Modern dispute management solutions, such as Quavo’s Quantum Fraud and Dispute (QFD®) software and Dispute Resolution Expertise (DRE™) services, provide a cost-effective, scalable, and high-value alternative that enhances efficiency, compliance, and customer trust.
Ensuring Value From Day One: Overcoming the Challenge of License Pricing
Many financial institutions hesitate at license pricing, fearing high upfront costs or long-term commitments before realizing value. However, this model provides predictability, ensuring immediate access to industry best practices, hands-on user training, and strategic advisory support, all before go-live. While some may view fixed costs as a drawback, license pricing also eliminates unexpected fees, supports structured scalability, and fosters long-term investment in a proven solution.
At the same time, implementing a dispute management solution requires internal teams to adapt by updating documentation, adjusting staffing, and training employees. This transition period isn’t a sunk cost; it’s an opportunity to lay the foundation for operational efficiency and maximize return on investment.
Right-Sized Solutions: Finding the Perfect Fit for Every Institution
Not every financial institution needs a full end-to-end transformation. Some require only targeted solutions that alleviate specific pain points while remaining affordable and easy to implement. A modular approach offers institutions the ability to start with incremental changes, whether in claim intake or back office optimization, without requiring deep integration. These streamlined implementations provide a quicker ROI while allowing for future scalability.
Proving ROI: The Path to Immediate and Long-Term Value
Financial institutions may hesitate to invest in dispute management solutions due to uncertainty about ROI. However, real-world data demonstrates rapid, tangible benefits:
Regional Credit Union’s Results Within 1 Month
One month after implementation, a regional credit union achieved an 87% automation rate, only manually reviewing 13% of tasks. Additionally, 42% of the credit union’s dispute volume was resolved without needing a human touch.
Automated Vs. Manual Tasks
Disputes Straight-Through Processed
Top State Bank’s Results Within 1 Year
Within a year, a top state bank using QFD and Verifi recovered an additional $35,000 annually by increasing resolved CDRN cases from 4,500 to 16,000.
QFD automates merchant collaboration ensuring a case on every eligible dispute, no manual submission or tracking needed.
Using QFD, incremental improvements allowed institutions to realize quick wins, making dispute management a self-funding investment rather than an expense.
Understanding the True Cost of Legacy Systems
Many institutions struggle to quantify the cost of their existing dispute resolution processes, making it difficult to assess the value of modernization. Seek an established provider who can help benchmark operational performance against their own and industry averages, providing data-driven insights that reveal inefficiencies and hidden costs. Look for a fintech who has familiarity into your existing technology, like your core system, online banking provider, and card issuers. This will ensure a streamlined onboarding with an expert team who can anticipate blockers and elevate your own internal knowledge.
With experience across 40 issuers and 350+ brands, Quavo enables clients to make informed decisions, technical and compliance-wise, with a clear understanding of potential savings and operational improvements.
Transparent Pricing: Eliminating Hidden Costs
Some financial institutions express concerns that per-dispute pricing may not always reflect the effort required or value delivered. However, Quavo’s pricing model is designed for clarity and predictability, with no hidden fees for implementation, maintenance, or compliance updates. Unlike traditional vendors that charge for every regulatory update or system enhancement, Quavo ensures clients remain compliant with bi-annual Association mandates at no additional cost.
Additionally, clients benefit from seamless software updates, comprehensive training, and expert-led implementation support, all included in the pricing model. This approach removes financial uncertainty and ensures that institutions can accurately forecast their dispute management expenses.
Internal Evaluation: Breaking Free From Vendor Lock-In
Institutions embedded in legacy systems often feel that unbundling from existing vendors is too complex or costly. That said, outdated dispute management leads to inefficiencies, customer churn, and compliance risks that truly outweigh the short-term challenges of transitioning to a modern solution. Automation capabilities reduce manual workloads, improve compliance, and enhance customer trust – often for less than the cost of hiring a single full-time employee.
Financial institutions that take a closer look at their dispute management costs often realize that inaction is the more expensive option.
A regional bank reduced dispute resolution time from 30 days to 15 and is achieving resolution 12 days faster than the industry average.
Aligning Incentives: How Solutions Support Fraud Management
A growing priority for financial institutions is reducing the overall volume of disputes by catching fraud before it escalates. Modern dispute management solutions integrate seamlessly with fraud detection tools like Falcon, Arcot, and Cardinal, enabling institutions to leverage real-time fraud insights. One client using QFD alongside fraud detection technology reduced fraud losses to 13%, 24% lower than the industry average.
For those requiring additional expertise, Quavo’s DRE service offers an alternative to traditional BPO vendors that charge per “touch,” often prolonging dispute resolution to maximize billing. DRE charges per dispute, incentivizing efficient resolution and cost savings while ensuring compliance and customer satisfaction.
Expert Support: The Role of DRE in Flexible, Scalable Dispute Management
Institutions facing fluctuating dispute volumes often struggle with staffing and resource allocation. Quavo’s DRE service provides a flexible, on-demand extension of an institution’s team, capable of handling seasonal spikes, fraud surges, or unexpected increases in dispute volume. The team is equipped to handle any and all parts of back office, tailoring their approach based on client needs.
By combining software with expert services, financial institutions gain a tailored solution that adapts to their unique challenges and ensures continued operational excellence.
Quavo’s Solutions Minimize Impact of Cyber Attack
A credit union experienced a 380% surge in disputes in just one month due to a cyberattack, increasing cases from 11,834 to 57,613.
QFD automation processed 420,000 actions that month, saving weeks of manual effort.
DRE rapidly implemented new fraud mitigation strategies, restoring normal dispute volumes within two months.
Wrap Up
The financial services landscape is changing, and institutions that modernize their dispute management processes gain a competitive advantage in cost efficiency, compliance, and customer trust. By addressing common concerns such as upfront costs, integration challenges, and ROI uncertainty, Quavo provides a striking case for adopting automated dispute management solutions, be it a smaller-in-scope project or an end-to-end transformation.
With proven results, transparent pricing, and flexible service models, Quavo meets financial institutions where they are, offering scalable solutions that drive immediate and long-term value. Move beyond legacy systems and embrace a strategy that prioritizes both operational excellence and customer loyalty.
