Across the industry there is an acceleration of the consolidation of payment systems in response to pressures on driving down infrastructure costs. Catalysts for this include:

• Rebuilding trust and reputation with clients in the wake of the financial crisis

• Enriching customer experience - developing smarter and more efficient customer contact strategies where the customer could be the potential victim of fraud

• Driving down exception management costs - delivering quality products and services at the lowest possible unit cost

• Leveraging payment intelligence - having the right data in real time to make informed decisions for your customer

• Staying compliant and competitive - regulatory pressure, sanction screening, industry initiatives including the Payment Services Directive, SEPA and Basel III facilitating competitive parity against rivals

• Differentiating - through innovation and speed to market including the ability to design and launch new customer services such as mobile, "tap and go" NFC (near field communications)

• Consolidating systems - merging and rationalizing legacy systems acquired during M&A including straight-through processing and capacity planning

 

Convergence produces opportunities for financial institutions to be more intelligent and comprehensive in how they view potential financial crime across all channels. The ability to more broadly and nimbly detect and protect against fraud can be a powerful business driver of ROI.

Often legacy systems produce a siloed financial crime management approach. ACI Proactive Risk Manager delivers an enterprise view of customer data for detecting and preventing fraud and money laundering across all channels and transactions. For example, when new payment initiation channels are added (e.g. mobile banking) that data can be quickly added in aggregate to complement the enterprise view of cross-channel data at the customer level.

Enterprise financial crime management systems also rely on real time capabilities to stop fraud from being authorized. While the transaction is in flight, the data is analyzed and can be declined prior to authorization or pay/no pay decisions being completed. More sophisticated instances of enterprise financial crime management solutions combine data from location, trends in analytics as well as specifics to the customer's profile.

Bank of New Zealand was able to take advantage of the features in Proactive Risk Manager to quickly roll out a card protection scheme that served the added benefit of attracting customers to the ATM network more often. This resulted in new business and services for BNZ. Using a liquid encryption number (LEN) update to the card at the ATM, BNZ saw an immediate reduction in fraud as the program was rolled out.

 

 

 

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