What the Client Wanted
Leverage fraud analytics to devise the perfect solution for fraud detection in banking.
The financial services industry player approached Quantzig to leverage its expertise in fraud analytics. The client wanted to devise predictive models for fraud detection in banking. Our analytics experts also helped the client to study their data patterns and strengthen their team’s ability by bringing to the forefront advanced levels of analytics insights that are aligned with their business needs.
Overview of the Financial Services Industry
In today’s financial services industry landscape, fraud analytics has been a buzzword for many years. The financial market in the U.S is the largest and most liquid in the world, hence, investments in the U.S financial services industry offers significant advantages for financial companies. Though the financial services industry offers an array of financial instruments and services to empower its customers to manage risk, create wealth, and meet their financial needs effectively, there a few that need to be looked into to prevent major losses.
Quantzig’s fraud analytics experts offer robust solutions for fraud detection in banking, which enables players in the financial services industry to identify and implement the best practices to prevent fraud. Our solutions are a combination of subject matter expertise and analytics insights that are based on world-class methodologies to help ensure long-term business success.
Request a free proposal to know how fraud analytics can help you detect fraudulent to prevent damage.
Financial Services Industry Challenges
- Establishing a social presence: The increasing discredit of social media platforms and its contribution to banking firms comes at an awkward time for financial institutions. The last thing on the minds of financial services industry players is associating their brand with anything that could potentially mislead their customers. However, owing to the growing popularity of social media players, companies in the financial services industry cannot afford to ignore such impactful channels with a wide reach. As more and more banks establish their social media presence, it will become quite interesting to understand how they manage it successfully.
- Revised payment service directive (PSD2): PSD2 enables customers to make use of third-party providers to manage their finances. In the future, there are sizeable revenue opportunities for banking firms that position themselves as the destination for PISPs (Payment Initiation Service Providers). This is because new market players will approach the banks that offer higher service standards. Doing so enables banking firms to recapture lost market shares and some of their own transactions that flowed out of their system.
About the Client
Headquartered in the U.S, the client is one of the leading players in the financial services industry, with over 45 branches all over the world.
Owing to the fierce competition in the financial services industry, banking firms. especially those in the credit card business are forced to target low-value customers to expand their customer base. As players in the financial services industry try to reach out and acquire such customers they are increasingly faced with challenges related to the security of transactions. This has, in turn, resulted in an increase in the number of fraudulent activities and transactions making fraud detection in banking a priority for companies operating in the financial services industry. Owing to such factors, the client was looking at devising effective strategies for fraud detection in banking.
Fraud detection is of key importance for players in the financial services industry. The shortcomings of the traditional fraud detection systems are compelling leading players in the financial services industry to implement the best practices for fraud detection in banking. Fraud analytics played a major role in devising an effective fraud detection model for the client. The devises model also enabled the client to identify fraudulent applications and prevent such transactions. As a result, cost savings obtained directly impacted their bottom line.
Insights on fraud detection in banking
Improvements in service efficiency clearly differentiate a banking firm in a highly complicated industry, such as the financial services industry. It brings banks closer to their customer and enhances the value of their services by preventing financial thefts. Fraud analytics has been a major contributor to fraud detection in banking by helping firms function smoothly.
However, it might be a daunting task for players to stay ahead of the curve by identifying and investigating the ever-evolving fraudulent activities prevalent in the financial services industry – unless they navigate through the new world of fraud analytics to help in this process.