Business intelligence (BI) solutions are not new to banking. With a blend of tools, techniques, and technology, BI processes information with accuracy, which otherwise would have been performed by humans. BI solutions have been enabling banks with capabilities to generate more revenue, reduce costs, mitigate risks, and more.
Open banking (under the European Union’s Revised Payment Services Directive or PSD2), means third parties can link up to customers’ accounts, provided the customer consents. With data-sharing as the central feature, open banking is designed to encourage higher product and service innovation, make it easier for non-banks to participate and streamline user experience.
The business value of anomaly detection use cases in banks is obvious. From credit card fraud to check fraud to money laundering to cybersecurity, precise and quick anomaly detection is necessary to conduct business, protect customers and protect the bank from potential losses.
Cross-border payments form an enormous chunk of transnational cash flow. However, the boon has not been without a bane – the risk of fraud.
Increasing instances of related party transactions (RPT) fraud in banks seem to be making the old ‘blood is thicker than water’ saying truer by the day.
By watching out for internal fraud schemes as they happen, real-time technology helps banks respond to threats faster, prevent financial losses and reputational damage.