Banking Fraud: What to Do About the Multi-Billion Dollar Problem
Technology is already disrupting financial institutions, and according to Deloitte, its convergence with demographic, economic, and regulatory forces will lead to a new wave of disruption in the coming decade. In order to adapt, banks and credit unions must become more “open, transparent, real-time, intelligent, tailored, secure, seamless, and deeply integrated” into their customers’ lives.
However, many financial institutions (FIs) are still sitting on a lot of technical debt and struggling to obtain easy access to high-quality data. Meanwhile, financial institutions have a growing, multi-billion dollar online fraud problem. Many FIs are desperately searching for effective yet affordable fraud tools: businesses will spend over $50B on fraud detection & prevention solutions by 2025. But will these solutions be sustainable without first addressing legacy systems? Deloitte urges the banking industry to “fix the data problem before undertaking radical technology transformation.”
Enova Decisions knows what internal and external data sources are most likely to be useful in predicting fraud and the analytics expertise to create and manage algorithms in a system that FIs need. As part of publicly-traded Enova International, Enova Decisions has over 15 years of experience in online global lending to meet the needs of non-prime and thin file audiences. Eradicating fraud with minimal friction to the customer experience is central to our financial success.
Based on Enova’s best practices, here are considerations for FIs as they tackle fraud.
- Start with application fraud. By focusing on detecting fraud earlier in the customer journey, you also minimize the risk of later fraud attempts.
- Migrate to a modern decisioning engine while leveraging existing infrastructure. A modern decisioning engine like Enova Decisions Cloud enables FIs to deploy and manage machine learning models and decision flows without needing to wait for the IT queue.
- Don’t forget about scalability, compliance, and security. Fraud detection is not a “one and done” fix as fraudsters will become more sophisticated over time.
Enova Decisions works with banks, credit unions, and other financial services providers to digitize and optimize their fraud, credit, and marketing decisions while managing portfolio risk.
Contact us today to learn how.