Financial Institutions Are Not Employing The Right Technology to Combat Fraud
Despite a wide array of technologies available to financial institutions, too many are falling short in their efforts to combat fraud, and the costs associated with using obsolete legacy solutions are growing.
As a result of poor anti-fraud measures and mitigation solutions, new threats continue to pose substantial risks not only to banking customers, but to the industry as a whole.
However, an advanced artificial intelligence solution may be a savior.
According to an in-depth report issued by Guidehouse, financial institutions are falling short in use of technology to combat fraud, especially technology that’s proven to save institutions from the $4 in costs for every dollar of fraud incurred.
The report, based on a survey of over 125 senior execs at financial institutions, reveals the startling truth. FI’s are relying on a “set-it and forget-it” approach to anti-fraud technology, with many still using obsolete systems.
As a result, companies are facing huge profit losses, erosion of customer loyalty and trust and their reputations are being lambasted in the sphere of public opinion.
Guidehouse’s head of Financial Services, Ellen Zimiles, said, “This survey and our analysis underscores just how critical it is for public and private sector clients alike to align their technology solutions with broader risk mitigation frameworks throughout the enterprise,”
37% of all financial institutions surveyed say they’re not adequately prepared to respond to evolving threats to the institution. Further, 66% say identifying evolving fraud patterns is their top challenge.
As financial frauds further evolve, detecting and preventing them will become nearly impossible with the use of legacy solutions. As stated earlier, it now costs institutions $4 for every dollar in fraud. And it’s likely to only increase.
It’s why employing cost-effective, state-of-the-art artificial intelligence technology is a must.
ToolCASE, a world leader in customizable AI for the transactional industry, has developed anti-fraud tools for financial institutions. Differing from legacy solutions that analyze batched data, ToolCASE operates and reports in real time.
Their best-in-class solutions, powered by RembrandtAi, have already proven to save institutions from massive financial losses, at perhaps the most cost-effective rate across the industry.
With its ability to monitor and analyze millions of live datapoints, even the smallest of anomalies can be instantly alerted to fraud teams, helping to avert losses.
Further, it can identify evolving fraud patterns and predict when and where new threats may occur, with remarkable accuracy.
Now, while many fraud departments are leery of new technology, and are concerned about the associated costs and training, ToolCASE’s solutions are easy to operate, training is seamless, and, of course, the cost of its technology has shown fantastic ROI in a matter of months.
Many other AI solutions may take years before a strong ROI is reached, are difficult to implement and don’t offer the same level of support.
Don’t let your financial institution suffer further losses. Keep your customers happy and your reputation intact with ToolCASE.
Discover how ToolCASE, the world’s most advanced transactional AI company can catapult your anti-fraud efforts into the 21st century and beyond.
Visit us HERE and request a demonstration. You may be shocked at just how effective it is… and how much money your institution could save in fraud costs.
Or you can read more about a lack of tech in banking, HERE