Risk & Compliance How 4Finance Meets AML Rules in 10 Countries
Meeting the separate AML compliance requirements of multiple countries can be a nightmare - here's how global fintech 4finance did it in record time.
Tag Archives: Retail Banking
Fraud & Security Social Engineering and Push Payment Fraud – Who Should Pay?
The Which Super Complaint shows that consumers are increasingly looking to banks to solve the issue of authorised push payment fraud.
Collections & Recovery Top 5 Collections Posts: Getting Ready for IFRS 9 and GDPR
Last year saw collectors making plans to deal with new regulations, as were their colleagues throughout banking. It’s no surprise then that the most popular collections posts on the FICO Blog dealt with getting ready for IFRS 9 and GDPR.
Risk & Compliance 4 Reasons Even Big Banks Are Making a Transition to the Cloud
Among the major banks in Canada, more than 60% that have already made the transition to the Cloud and we fully expect the others to follow suit in the new year.
Risk & Compliance Banking Regulation Predictions 2018: U.S. Reform Takes Off
With much of the dramatic shift in the U.S. regulatory landscape complete, we are moving to the next stage, which will focus more on efforts to adopt regulatory reform.
Analytics & Optimization Centralized Decisions Power Success at African Bank
African Bank can now launch new credit strategies 30 percent faster at 25 percent lower cost with centralized decisions powered by FICO technology.
Risk & Compliance Where — and Why — EFL Alternative Credit Scores Work
Does EFL’s psychometric scoring work across countries, cultures and population segments?
Analytics & Optimization Modelling Deposit Price Elasticity: Challenges and Approach
This is the third in a series of blogs on deposit pricing, focusing on price elasticity modelling approaches and challenges. The goal of any deposit price optimization solution is to make data-driven pricing decisions to manage portfolio balances and trade these off against the associated costs. These solutions should allow a pricing manager to prepare and run what-if analyses to assess the impact of pricing strategies, competitor price actions or movements in central bank base rates. Fundamental to these solutions are price-elasticity models that capture and predict customer behavior as a response to pricing and other non-price factors. In this blog, we discuss the challenges and solution approaches for the development of robust price-elasticity models. Price Response Signal Price sensitivity can be measured with regards to product rate, market ranking, competitor rates or even interest paid to other products in the portfolio. The modelling challenge is not only to measure... [Read More]
Fraud & Security PSD2 – Why is Transaction Risk Analysis Important for PSPs?
Worried about increasing levels of fraud, particularly in remote payments, the regulators have made fraud prevention a cornerstone of PSD2. The regulated use of Strong Customer Authentication (SCA) by payment service providers (PSPs) to secure payments is laid out in the Regulatory Technical Standards for PSD2. However, the use of SCA to secure every payment over €30 could cause problems for PSPs. It could impact the level of customer service they can offer by forcing them to add friction to the consumers’ payment process, forcing consumers to re-authenticate themselves using multiple factors at the point of payment. There is a difficult balancing act between fraud reduction and customer experience. PSPs will be allowed to manage this balance by securing payments using transaction risk analysis (TRA) – as long as they can keep their fraud rates low enough (see the transaction value table from the regulatory technical standard, below). TRA is... [Read More]
Fraud & Security Double-Digit ATM Compromise Growth Continues in US
While data breaches and ransomware grab the headlines, we’re still seeing fraud growth due to ATM compromises in the US. The fraud growth rate has slowed down from the gangbusters surge we saw in 2015, but consumers and issuers still need to pay attention. The latest data from the FICO® Card Alert Service, which monitors hundreds of thousands of ATMs and other readers in the US, shows a 39 percent increase in the number of cards compromised at US ATMs and merchants in the first six months of 2017, compared to the same period in 2016. The number of POS device and ATM compromises rose 21 percent in the same period. Beyond the numbers, at FICO we have seen the rate of fraud pattern changes accelerating over the last two years. As criminals try to beat the system, we are continually adapting the predictive analytics we use to detect compromises.... [Read More]