How to Stop More Application Fraud Using Smart Technology

The disconnected enterprise typically has multiple point solutions for managing customers, which suffer from limited integration. Single functions within a financial institution may even have multiple disparate systems; for example, those tasked with application fraud prevention may employ distinct tools for identity proofing, bureau data checks and analytics to detect potential fraud. While these individual solutions contribute value, the real transformation lies in harmonizing them into a cohesive ecosystem.

Forward-looking organizations can leverage vital data from specialist solutions but also manage them from a single platform such as FICO Platform, which orchestrates their use and supplements them with core competencies that:

Integrate, Enrich and Share Data

Streamlining data compilation and formatting while facilitating seamless data sharing across functions is the key to dismantling information silos. Centralizing all this data via a single platform facilitates a unified, authoritative version of the truth. Furthermore, the data assets generated through analytics can be securely preserved and readily accessed whenever and wherever they are required.

Enabling access to external data via a unified platform empowers you to adopt a more strategic stance when it comes to engaging third-party suppliers. FICO Platform offers a streamlined avenue to add and remove data sources, thereby fostering a more agile approach to vendor selection. This agility enables you to efficiently identify the ideal data providers to cater to the diverse requirements of various business functions engaged in customer acquisition.

Leverage AI and Machine Learning for Better Decision-Making

In today's data-rich landscape, the power of analytics knows no bounds. It empowers financial institutions to unearth the answers they seek when welcoming new customers onboard. FICO Platform seamlessly integrates cutting-edge analytics, AI, and machine learning, enabling crucial decisions, including:

• Assessing Credit Risk: Evaluating whether the applicant aligns with the credit risk threshold.
• Optimizing Offers: Identifying opportunities to adapt offers, such as adjusting terms or extending credit lines.
• Identity Verification: Detecting potential instances of stolen or synthetic identities and ensuring security and trust.
• Fraud Prevention: Detect the likelihood of first-party fraud.

FICO Platform harnesses the combined power of AI and machine learning, so that organizations can confidently navigate the complexities of customer onboarding, making smarter, data-driven decisions that shape a more secure and prosperous future.

Orchestrate Logical Workflows that Optimize Processes and Hyper-Personalize Customer Experience

To truly cater to the unique needs of customers, it's imperative that you treat them as individuals. This entails providing tailored experiences that not only delight them but also align with the specific requirements of your various business functions. However, achieving this ideal is contingent upon having an efficient system in place for managing information gathering, conducting application checks, and making decisions.

FICO Platform helps you to design effective decision trees, to seamlessly integrate the entire process and dynamically adjust the customer journey as decisions are made and new information surfaces. This adaptability allows you to respond effectively to various scenarios. For instance, if the analytics detect a heightened risk of identity fraud, FICO Platform can activate additional checks from your third-party providers. Conversely, if an applicant is identified as a poor credit risk, you can terminate the application before costly identity and fraud checks are initiated.

Orchestration through a unified platform also reduces cost and improves efficiency by preventing redundant actions. For example, it can prevent an identity check that happens during a digital interaction being followed by a duplicate verification during an out-of-channel process, such as a subsequent fraud check.

Moreover, when your assessments determine that customers pose a low risk, you can offer them an expedited pathway with fewer checks. This not only enhances the overall customer experience but also optimizes resource utilization, making it a more cost-effective approach. The commitment to treating customers as unique individuals and your ability to adapt to their specific needs is bolstered by the power of a well-structured decision-making platform.

Engage Consistently with Customers

To foster a consistent and seamless customer experience, it's imperative that all departments involved in customer interactions establish and maintain consistent communication practices. Often, the lack of synchronization among these functions results in a disjointed experience for the customer. Different departments tend to employ various communication channels and authentication methods and customers are contacted multiple times for the same or similar information.

FICO Platform offers a robust solution with its multi-channel customer communication capabilities. These capabilities are an inherent part of the platform, simplifying the alignment between your customer data, integrated workflows and communications. To mitigate over-communication, it's crucial to structure communications to request all required information for multiple functions in a single interaction.

FICO Platform allows for effortless deployment of customer communication preferences. Should the need arise to transition from one communication channel to another, this can be seamlessly accommodated, ensuring a smooth and adaptable customer experience.

This post is the third in my series, in the first I discussed some of the problems siloes create, and the people practices that can reduce siloes. In my second I reviewed some processes that help develop collaboration.

Learn More about Breaking the Siloes to Fight Application Fraud

FICO Platform revolutionizes how organizations make decisions and apply intelligence across the customer lifecycle. It enables you to ditch siloed, point solutions and unify your operations with a modern, API-first applied intelligence platform. this empowers you to deliver game-changing customer outcomes by transforming your data, analytics, machine learning and human expertise into real-time decisions at scale across channels.

• Read the white paper: Breaking Down Siloes – Originations and Application Fraud
• Read the white paper The changing face of application fraud
• See the results of our latest fraud, identity and digital banking consumer survey
• Explore the range of FICO fraud solutions
• Discover FICO Platform