AI is essential in fraud management – but it must be explainable

In a new podcast, Payments Cards & Mobile Managing Director Alex Rolfe is joined by Roy Prayikulam, SVP Risk and Fraud at Inform.

The two discuss the present and future role of Artificial Intelligence (AI) and Machine Learning (ML) in the fight against fraud and money laundering in financial services.

The wide-ranging discussion will help anyone involved in risk management and fighting financial crime to better understand the current state of play regarding AI and ML  – plus why they are essential not just today, but for the future as well.

Topics covered in the podcast include:

• Transparency matters when it comes to intelligent fraud and AML defences. As the industry makes fast progress in the implementation of smart fraud detection and management solutions, regulators and ethical bodies will require banks to better explain how they reach their decisions.
• AI is just in its infancy and will only grow in significance. Over the last ten years, a multiplicity of digital payment methods have emerged alongside card payments – and the volume of digital transactions has rocketed. Meanwhile, more sophisticated software has made it possible to extract more data about transactions.
  In this podcast Roy and Alex discuss why this makes AI and ML must-haves when it comes to defending the interests of consumers, merchants and banks.
• Transparent solutions help case management teams make better decisions. Just as digital transactions have seen explosive growth, so the parameters available to Fraud and AML investigators has increased dramatically.
  It’s now possible to glean device ownership, geolocation data, transaction frequency, volume and many other parameters. Roy explains why interpreting this data in a clear and consistent manner helps case managers make smarter decisions.
• The ethical dimension. Consumer and regulators are becoming more focused on how and why banks and payments companies use all kinds of personal information. As data continues to grow in importance for transaction security, financial institutions will have to explain why they need certain data and how they are using it.

Inform is a leading provider of digital decision-making solutions to the financial services industry, using AI and ML to make payments and banking operations more secure, profitable, reliable and agile.

Listen to the podcast now to learn more about transparent, explainable AI and ML in fraud management and Anti-Money Laundering.

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