Over 90% of European FinTech companies plan to adopt AI-enabled risk decisioning to combat fraud, according to a study by risk decisioning software developer Provenir.
The survey got responses from 100 decision makers in FinTechs and financial services across Europe. It also found that 68% of companies are looking at AI-powered risk decisioning software to automate decision making across the credit lifecycle, while 65% are seeking it for competitive pricing and 61% hope to get cost savings and operational efficiency.
Provenir also found that alternative data is being used as part of anti-fraud efforts, with 68% of respondents using this information in their fraud detection.
Furthermore, access to data is the biggest challenge to an organisation’s risk strategy, according to 88% of respondents. This was closely followed by a lack of a centralised view of data across the lifecycle, with 74% citing this.
Finally, the report shows a lack of confidence in credit model accuracy, with just 22% of respondents believing their organisation’s risk model is accurate most of the time.
Provenir SVP, Global Solutions Carol Hamilton said, “The risk of fraud has heightened across the entire financial services landscape, and with attacks only becoming more sophisticated and widespread, it is positive to see that more firms are turning to AI-enabled technologies to minimise these threats.
“The key benefit of using AI-enabled decisioning for fraud detection is its ability to get smarter with each decision it processes. So, as fraudsters evolve their methods, AI models can use real-time data to identify new patterns, learn, and adapt to constantly detect fraud threats and minimise risk.”
Copyright © 2022 FinTech Global