Implemented well, a customer management system—powered by advanced analytics—gives business executives a set of integrated controls for interacting with their existing customers in an intelligent, interconnected way. [Read More]
A key component of stopping fraud, waste and abuse is to focus on your most productive targets: Who or what should be the focus of your payment integrity program?[Read More]
Despite the legitimate concerns, it would be wrong to ignore SMS as a Strong Customer Authentication tool for PSD2.[Read More]
As one of the first companies to use the FICO Falcon Platform's machine-learning adaptive analytics capability, EnterCard is able to rapidly respond to shifts in fraud patterns.
The most effective approach to pre-payment prevention of losses is to risk score your claims, post-adjudication, prior to payment, in production-strength software which uses xAI and machine learning.
FICO Scores R&D has empirically investigated potential benefits and risks associated with using some of the latest AI and machine learning approaches for credit scoring.
There’s a pervasive view that compliance for money laundering remains a cost-centre activity, and is primarily a “check-the-box” exercise to keep the auditors and regulators satisfied. However, that has evolved in recent times. As business volumes and data complexity increase exponentially, AML compliance has taken on a bigger role. There’s a growing realization that compliance needs to be imbued as a culture from the top-down to the entire organization for it to be effective, and that a wider perspective of tackling financial crime is required, rather than separate siloed risk operations. Leaders realize that it not only safeguards the institution’s reputation and shields against regulatory pressures, but works in tandem with other risk operations in the financial institution to reduce risks and thereby improve long-term business prospects. The more modern and relevant view now, is that compliance brings real value to the entire organization, rather than being a distraction or inhibition to business.... [Read More]
Customers could thwart PSPs' plans for Strong Customer Authentication if they don't know about it in advance.
Banking AI – APAC Survey We recently surveyed 33 chief risk officers from across Asia Pacific at our CRO Forum regarding the operationalizing of banking AI. We found that 91 percent of banks in Asia Pacific (APAC) felt they lagged behind banks in the US and Europe when it came to implementation of AI in their operations. The remaining 9 percent indicated that they were at least on par with US and Europe counterparts, while not a single respondent felt they were ahead. When asked about the biggest challenge in adopting AI and machine learning into existing bank operations, 42 percent indicated that it was the lack of available talent. The use of legacy systems (28 percent) came in second, followed by cost (16 percent). Banking AI – Operationalizing AI “The shortage of talent continues to be an issue worldwide as the use of AI continues to grow quickly,” said... [Read More]
The Australian Competition and Consumer Commission (ACCC) handed down its final report on the Residential Mortgage Pricing Inquiry and it certainly had a lot to say about the current pricing of Australian home loans. The inquiry was initially set up to monitor the implementation of the Commonwealth Government’s Major Bank Levy in May 2017. The inquiry tasked the ACCC with monitoring Australia’s five largest mortgage lenders, each of whom was subject to the levy. Whilst their primary remit was to the monitor the conduct of the banks during the Bank Levy monitoring period, the ACCC also took a more holistic review of pricing practices throughout the industry and responses to regulatory events over the same period. The findings of the report centred on the following themes: The use of discretionary pricing and its lack of transparency Larger discounts going to those customers who are willing to shop around The additional... [Read More]
The reports note that the FICO TONBELLER Siron AML and KYC products are “mature, proven solutions with substantial out-of-the-box features including configurability, data connections, and analytics.
FICO recently hosted 60 banking fraud professionals from 33 organizations and 8 countries at its Asia Pacific Fraud Forum. Attendees were keenly interested in how artificial intelligence and machine learning continues to be a key technology in the fight against fraud and financial crime. There was also a lot of discussion about the growing convergence between fraud and compliance departments and how business and operational models must adapt. Lastly, there were common challenges around the growing complexity of data sets and the need to deal with them at speed and with greater accuracy. Three of FICO’s fraud leads explain some of the key themes and discussion points raised at our Asia Pacific event. Banking Fraud – Financial Crime Convergence! Adam Davies: During the event, there were many conversations and discussions around the convergence between fraud and financial crime. It was interesting to see that many of the attendees had responsibilities... [Read More]
Banks and fintechs and other FIs have an opportunity to help customers affected by federal shutdown with flexible collection solutions.