The last few years have seen a revolution in the way banks provide their services to customers. Banking is becoming tailored to the individual in ways that just 10 years ago were not possible. When thinking about opening a new account, customers now consider how usable the bank’s smartphone app is and other aspects that would have been considered irrelevant in the past.
But are your fraud detection systems keeping pace with the rate of change?
The development of new payment mechanisms and channels has historically taken so long that it has simply not been worth deploying a corresponding fraud system until the new channel becomes a core offering. But given the desire for improved product and service accessibility, coupled with customer opinion and advocacy driving changes in the industry, this “take it slow” approach simply won’t work anymore. Banks run the risk of being left behind in the adoption of new technology.
The financial services industry cannot continue to deploy separate and siloed detection solutions for every channel and payment method. Having a central view of the customer is the best way to ensure that your fraud platforms are set up to absorb new innovations. There are commonalities across all payment channels, be they traditional like ACH and SWIFT or newer like Paypal or even Bitcoin, that can be used for fraud detection.
FICO is working with banks that have historically not connected information about the customers' financial movements across their products, but are doing so now so that they can more quickly spot anomalies and detect fraud. Indeed, we have re-architected our industry-leading FICO® Falcon® Fraud Manager system to create a true cross-product, enterprise-wide fraud system. Now is the time to reassess your approach to fraud protection. Are you ready for rapid changes in the changing payments space?
See our new video on enterprise fraud management here:
Thanks to Adam Pearce of Fair Isaac Advisors, FICO’s consultancy group, for this post.