How Banks Fight Fraud and Ensure Compliance Using Data
Written By: Olivia Klayman

It is imperative that businesses protect their proprietary and confidential information. The banking industry, specifically, has the most to lose from having a data infrastructure that is not able to safeguard their most valuable resources and information.  

 With thousands of financial and customer profiles under their domain, their reputation and longevity in the industry rely heavily on their ability for customers to trust that their information will remain private. Thus, here are three tools that banks can adopt to fight fraud, ensure compliance, and protect their data… 


AI and ML is key to a secure network. It’s no surprise that Artificial Intelligence is at the heart of innovation. It can be extremely helpful in the rapid detection of unusual behavior. It does this through the use of its complex algorithms used to identify and address outliers and abnormalities. AI knows to flag these activities, clueing business personal to evaluate it. In fact, experts at the HIS Markit anticipate that AI will be such a valuable tool that the industry will likely jump to a valuation of $300 billion before 2030. Undoubtably, it will only continue to play a larger role in how banks navigate fraud detection. 


Advanced analytics offer an extra layer of customer insight and awareness. In the banking industry, customer insights are extremely important in the fight against fraud and hackers. One of the most impactful offerings of a modernized data framework is its ability to offer holistic and detailed reports on their customers. Whether a business user is looking to evaluate customer behavior, or to isolate and evaluate projections relative to performance, a deep understanding of the market is both financially lucrative and necessary. 

 Systech Solutions offers “Customer 360º,” an offering that enables business users to gain a holistic, deep understanding of their customers. This is not only impactful with boosting performance, but also empowers businesses to gain a competitive advantage in the market. As a byproduct of this solution, Banks can effortlessly identify fraud and suspicious account activity within their customer base.  


 Risk Analytics as a helpful tool in maintaining compliance. Risk analytics can be the single most helpful tool in the fight against fraud. It is crucial that financial institutions utilize risk analytics to adhere to PSD2 regulations. These regulations mandate, the use of transaction monitoring to deter fraudulent payments and prevent threats like account takeover, new account fraud, and mobile fraud. In other words, these guidelines enable banks to legally and seamlessly champion analytics-powered monitoring systems to safeguard against financial crime threats. What’s more, these algorithm-generated risk analytics allow these business users to identify and act accordingly to risk signals the moment they occur. 

Risk analytics enable business users to measure transaction behavior against a variety of risk-based factors to take action on fraudulent activity (ITportal). This technology closely follows workflows, signals action in real-time, and protects existing online banking policies and rules. Risk analytics are arguably the single most important weapon banks have to protect their customers, honor compliance, and reduce operational costs.  


Fraud and Compliance in the years ahead, briefly… Trust is the foundation to a financial institution’s reputation and longevity. Banks, specifically, are tasked with an unbelievable responsibility and obligation to their customers. It is essential that these organizations have the most cutting edge and up to date technology available on the market to offset the consequences of fraud and theft.  

 AI/ML, Advanced Analytics, and Risk Analytics are three ways these financial institutions can securely protect and fight fraud, while also ensuring compliance for the customers that rely on them. As the industry continues to evolve, it will become increasingly vital that they remain vigilant, and technologically savvy.  

 The Systech Solutions, Inc. Blog Series is designed to showcase ongoing innovations in the data and analytics space. For more information, please click below. 

 For more information surrounding Systech Solutions’ Data Related offerings and innovations, explore 

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