Why do so many banking enterprise fraud management implementations fail to deliver?
Watch Rivi Varghese, CEO, Clari5 explain the top management pitfalls to avoid while implementing an effective fraud management system in banks.
Channel-based, siloed fraud management systems have been around for over 30 years now and most banks are grappling with a large number of such systems. This is the one reason why banks wanted to move to a cross-channel, real-time enterprise fraud management system. However, a majority of banks are not able to go live with a ‘true’ EFRM system (even after years of implementation), while some banks emerge victorious. An analysis of the situation reveals the primary reasons for these pitfalls.
Top Management Pitfalls to Avoid - Part 1
Any EFRM implementation must have a real-time data intelligence interface with Core Banking from Day 1. Without this EFRM implementation just becomes yet another siloed install.
Top Management Pitfalls to Avoid - Part 2
90% of EFRM implementations fail because of interfacing, especially when one tries to get into the complex interfaces with core systems, beyond the easier structured channel-based interfaces. The root cause of these failures, is vendors creatively, pushing the interfacing requirements to bank’s IT team.
Top Management Pitfalls to Avoid - Part 3
Banks fail to include the cost of sizing and ignore looking at the cost of say what is the overall TCO increase if my requirement increases by 100%. Also, many a times the bank lands up spending 400% in TCO for a 100% growth in requirement.
Top Management Pitfalls to Avoid - Part 4
TCO sensitivity is vital. TCO should include cost of license, AMC, cost of infra, cost of DB, cost of application server, cost of making changes, cost of upgrades, cost of customization over a 5-year period. Many a times we notice that bank pays 500% – 1000% of the original license fees as costs.