Banks vs fraudsters: Who’s winning in the digital age?
Banks have always fought against financial criminals, but with new technology, the fight is getting smarter on both sides. Luckily for banks, they've got a popular and powerful ally supporting them — artificial intelligence (AI).
But financial criminals are getting smarter, using complex schemes to steal everyone’s hard-earned money, making it tougher for banks to catch these fraudsters the old-fashioned way. That's where AI comes in. It’s constantly learning and improving to spot hidden patterns a human eye might miss.
High-profile fraud cases have shown that adding more compliance officers and analysts isn't the answer. New products and services are constantly popping up, the financial system is becoming even more complex, and the competition is getting fiercer. That's why many banks add intelligence into their operations and use AI-based technology to help catch these financial criminals.
Top five AI features that make banks stronger
In the closely examined area of financial crime and compliance, where even small mistakes can cause problems, here’s how these top five AI features give banks the upper hand:
Enhanced detection through machine learning: AI uses machine learning to learn and adapt. Just like a detective getting sharper with every case closed, the more transactions AI sees, the smarter it gets at identifying suspicious activities.
Holistic view with automated entity resolution: Automated entity resolution can consolidate financial information, giving banks a complete and holistic view of individual customer accounts. This helps identify risks and catch criminals in an easy and comprehensive manner.
Understanding context with network link analytics: Network link analytics (NLA) helps to figure out the “who’s who” in any financial situation, connecting the dots between customers and activities and revealing context for risk detection, investigation, and reporting.
Streamlined workflows with Generative AI (GenAI): GenAI can automate boring and repetitive manual tasks. AI can handle the paperwork involved with AML/KYC checks, giving bank staff more time to investigate suspicious cases.
Integrated ecosystem for Financial Crime and Fraud: A complete set of tools to fight financial crime – that’s what AI offers. Banks get a powerful integrated system that streamlines everything from checking customer information (KYC) to investigating suspicious activity (AML), with the help of GenAI to expedite manual processes and NLA to understand the details.
In the battle of banks vs fraudsters, the adoption of AI has made one thing clear — the fraudsters may be evolving, but the power of innovation will always make banks stronger. With AI on their side, banks can be better equipped than ever to protect their customers.
To discover how you can safeguard your bank from evolving fraud threats, feel free to reach out to our expert, Brandon Lobo, Director, Banking, at brandon.lobo@synpulse.com.
What's next?
Next week, we’ll talk about the ease and ability to scale. Stay tuned for more industry-leading insights, straight from our experts to your inbox every Friday.