Smart, effective real-time fraud prevention for retail banks
Adoption of digital banking services and savings platforms have presented significant challenges for retail banks when it comes to fraud prevention:
NetGuardians’ solution blocked 10 times fewer transactions than our former system and achieved a better fraud detection rate”. Read more
Many retail banks rely on a set of rules to assess the risk of a fraudulent payment. When a transaction exceeds a set value or is sent to a proscribed destination, for example, an alert is raised and a member of staff contacts the customer for verification. As transaction volumes rise, these banks need to employ more staff to do the checking, adding considerable cost. At the same time, the vast majority of suspended transactions will not be fraudulent and these false alerts risk damaging the bank/customer relationship.
New cost pressures
FinTechs and digital-only banks enjoy far lower costs than many retail banks, allowing them to charge lower prices. This is putting pressure on retail banks to cut their own prices or risk losing market share. But retail banks are operating in a low interest-rate environment with caps on interchange fees, reducing their profitability just as they need to cut prices.
Time for real time
New digital financial services providers are increasingly offering secure, fast, even instant payments, which are popular with customers. Traditional banks wanting to offer the same need to upgrade their systems and streamline their processes so they can handle high volumes of information in real time or they risk losing market share.
Changing demands from customers and regulators
Customers worldwide have proven receptive to the ease and low cost of digital banking, becoming less loyal to their high-street bank. Meanwhile, regulators are trying to promote competition and innovation through open banking which brings new, costly liabilities and security challenges to retail banks responsible for protecting their customers’ data and money.
NetGuardians overcomes these challenges AND spots and stops more fraud
Efficiency runs through NetGuardians’ fraud prevention software. By learning and analyzing the behavior of each and every customer in real time, NetGuardians software correctly identifies anomalous transactions associated with each account, dramatically increasing the fraud-detection rate without adding friction.
Fraud detection rate
Reported hits (blocked transactions)
The software is already part of the global financial ecosystem as it is embedded into the banking platforms of major vendors including Finastra, Avaloq, Finacle and Mambu and is available on premise and in the cloud. As a result, it can be installed easily and quickly with minimal impact on the existing processes of any bank and the experience of its customers.