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As criminal innovation rockets in the digital era and financial institutions cope with rising cost pressures and growing compliance burdens, a new white paper from pioneering global software specialists INFORM explains how AI (Artificial Intelligence) software solutions can help financial institutions improve the operational efficiency of their fraud defences and derive better value from them.
How AI helps Fraud and AML teams
INFORM’s white paper explains how the switch to a digital-first economy has created a number of new challenges.
From the growth in e-commerce, making it tougher to track key data such as source of funds and ultimate beneficial ownership, through to the rise of new fraud types such as Account Takeover and Synthetic ID fraud – both of which typically occur through digital channels.
At the same time, new regulations such as the EU’s Digital Operations Resilience Act (DORA, due in 2025) placing a growing compliance burden on banks.
To thrive in this challenging context, banks must think smarter, seeking to improve the performance of their fraud and AML functions while staying compliant, maintaining customer satisfaction and delivering shareholder value.
In their white paper, INFORM outline both the benefits that have accrued to banks through the application of AI to fraud and AML in recent years – as well as the promise of further improvements thanks to new generative AI techniques.
The paper explains why fraud and AML teams should be using a single, shared technology powered by AI that benefits both teams – and the wider ecosystem of customers, shareholders and regulators – by delivering optimal performance.
The paper goes into detail about how techniques such as data-driven AI and machine learning, knowledge-based expert systems and hybrid AI help to improve results in areas such as transaction monitoring, reduction of consumer friction during checkout, regulatory compliance and the preparation of cases for review by both internal staff and regulatory authorities.
By combining resources between Fraud and AML teams, INFORM contend that banks can create a 360-degree view of all their customer engagements – rather than seeing information related to Fraud and AML in team or product “silos”.
Their paper explains how the use of shared software resources helps to cut cost in a variety of areas while strengthening risk management and improving bank responses in a dynamic risk environment.
For more on how powerful AI software can cut costs, improve performance and deliver better outcomes, download the new white paper now.
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