LONDON — April 16, 2014— FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced that First National Bank (FNB), one of South Africa’s “big four” banks and named 2012’s most innovative bank in the world, is the first bank in the country to use FICO® Fraud Resolution Manager to communicate with customers when a potentially fraudulent transaction takes place. Using the FICO application, FNB can automatically contact a customer through voice calls and interactive SMS when a transaction is flagged as suspicious, usually reaching the customer while they’re still at the point of sale. FNB reports that this has reduced the number of fraudulent transactions per case by 30 percent, for a total savings so far of more than R150 million (approximately USD$14.3 million).
Card fraud in South Africa grew 22 percent in the first nine months of 2013, compared to the same period in 2012, according to the South African Banking Risk Information Centre (Sabric). Sabric put 2013 card fraud losses at R366.8 million.
FNB had a need to quickly detect suspicious activity. However, it was often difficult to validate these transactions fast enough to block fraudulent activity. At the same time, the bank had to avoid blocking genuine transactions. With the FICO solution, FNB is able to validate genuine transactions, focus on the real fraud and improve customer service.
FNB is currently using the FICO Fraud Resolution Manager in its Core Banking Solutions area to protect cheque card and debit card accounts. It will soon be deployed to cover the bank’s entire ~10 million South African cards, and FNB has deployed specific strategies for overseas and out-of-hours transactions. FNB will soon roll out the solution to other Southern African countries.
“FNB is an innovator in the South African market, and deeply committed to its customers,” said Hayley Kershaw, who oversees FICO’s operations in Europe, the Middle East and Africa. “Few banks globally have taken fraud protection technology to the ‘last mile’ — immediate contact with the customer — but this will soon become a best practice.”
FICO® Fraud Resolution Manager gives organizations the ability to process high volumes of cases simultaneously, performing investigations, shaping customer action and contact strategies, and reaching resolution in seconds. It is the only application that provides a seamless connection between fraud risk analysis and contact strategy development, deciding the necessity, timing, channel and nature of action required to find more fraud, reduce losses and foster customer loyalty. FICO Fraud Resolution Manager is part of FICO’s solution suite for enterprise fraud management, and can be easily integrated with FICO® Falcon® Fraud Manager, the world’s leading payment fraud protection solution, which protects 2.5 billion payment cards worldwide.
Founded in 1838, First National Bank is South Africa’s oldest bank. It is ranked the country’s second largest in terms of transactional lending, and third largest in terms of total assets. FNB was named the World’s Most Innovative Bank for 2012 by BAI-Finacle, and it offered South Africa’s first mobile banking app. FNB is a division of FirstRand Bank Limited.
FICO (NYSE: FICO), formerly known as Fair Isaac, is a leading analytics software company, helping businesses in 90+ countries make better decisions that drive higher levels of growth, profitability and customer satisfaction. The company’s groundbreaking use of Big Data and mathematical algorithms to predict consumer behavior has transformed entire industries. FICO provides analytics software and tools used across multiple industries to manage risk, fight fraud, build more profitable customer relationships, optimize operations and meet strict government regulations. Many of our products reach industry-wide adoption. These include the FICO® Score, the standard measure of consumer credit risk in the United States. FICO solutions leverage open-source standards and cloud computing to maximize flexibility, speed deployment and reduce costs. The company also helps millions of people manage their personal credit health.
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