Enterprise Fraud Management Solutions for Financial Services 2013

Financial crime has become a growing threat and area of concern for financial institutions due to a confluence of factors:

• The economic climate has proved more conducive to fraudsters and less conducive to financial institutions writing fraud off as the cost of doing business

• Increases in mobile and internet banking have tipped the balance in favor of the fraudsters

• Regulators have begun to incorporate fraud into risk management measures, particularly operational risk, and require banks to protect their customers.

Together, these factors make enterprise fraud management a necessity for financial institutions. The cost of fraud to financial institutions is increasing, but it represents relatively low-hanging fruit in terms of cost savings for those firms willing to tackle it. With returns under greater pressure in the current marketplace, many firms will want to take the opportunity to cut costs.

Firms need to adapt to a changing world. Fraud management systems were not built to deal with the opportunity for anonymity and coordinated cross-channel attacks provided by the internet. Professional fraud rings are exploiting the technological naivety of customers, holes in financial institutions’ defenses, and firms’ inability to
compare and match threats from different channels.

Despite this, advances in technology can also help financial institutions improve their anti-fraud strategy. Firms need to move to a more pro-active and cross-channel approach, focusing on prevention as well as detection, while balancing the need for robust anti-fraud measures with the customer experience. To do this, firms need to
take advantage of innovative tools for fraud detection and prevention, including:

• Link analysis

• Predictive modeling

• Artificial intelligence (AI) capabilities

• Enterprise solutions that can leverage cross-channel data.

Firms need to make the best use of technology available to support improved anti-fraud strategies. They need to find vendors that can offer them real-time, advanced analytics systems that can integrate with other key risk and banking systems, such as other financial crime solutions, operational risk, and customer intelligence. This report covers the competitive landscape for enterprise fraud management solutions for financial services firms.

This report uses Chartis’s RiskTech Quadrant™ to explain the structure of the market. The RiskTech Quadrant™ uses a comprehensive methodology of in-depth independent research and a clear scoring system to explain which technology solutions meet an organization’s needs.

This report covers the leading vendors offering enterprise fraud management solutions for financial institutions, including ACI Worldwide, Detica NetReveal, EastNets, Experian, FICO, FIS, Fiserv, Jack Henry, NICE Actimize, Oracle, SAS, Thomson Reuters, Tonbeller, Verafin, Wynyard, and YarcData.