In the fast-moving payments sector, preemptively addressing financial crime is not just crucial; it’s essential.
According to Quantifind, the pressure on payment service providers (PSPs) is monumental due to increased regulatory demands and evolving criminal tactics. The key challenge is achieving effective, rapid, and scalable crime detection and prevention.
At Quantifind, the firm said it believes the future of combating these risks lies in AI-driven risk intelligence.
Financial crimes are becoming increasingly sophisticated, utilising complex methods such as account takeovers and authorized push payment scams. A robust and adaptable defense strategy is crucial, capable of evolving as swiftly as the threats, according to Deloitte.
Traditional risk management strategies are no longer adequate against these advanced threats. The static models and manual processes cannot keep pace with the rapid evolution of financial crime, thus necessitating AI-driven risk intelligence.
AI’s capability to analyse vast data sets in real-time is revolutionising PSPs’ ability to detect and mitigate financial crimes. AI allows companies to shift from reactive to proactive risk management, enhancing compliance and fraud detection capabilities, as highlighted in McKinsey’s white paper.
At Quantifind, the firm claims its AI-driven solutions are specifically designed to analyse customer and counterparty behaviours and relationships at the pre-alert generation phase, enabling PSPs to accurately pinpoint suspicious activities, reduce false positives, and address genuine threats swiftly.
A significant challenge in risk management is scalability. As businesses expand, so do the risks and the amount of data to be analysed. Traditional systems often fall short.
Research from Gartner highlights AI’s pivotal role in scaling risk management operations effectively. With AI, PSPs can manage large volumes of transactions and customer data without sacrificing detection speed or accuracy, essential for maintaining operational resilience in a complex payments environment, as noted by Accenture.
Adopting AI-driven risk intelligence not only safeguards your business but also promotes growth.
Envision offering clients advanced fraud protection and risk management solutions. The concept of “Risk as a Service” (RaaS), as discussed in McKinsey’s white paper, is increasingly popular for good reasons.
AI facilitates transforming risk management into a value-added service that not only protects your clients but also strengthens your business relationships.
The payments industry is at a crucial juncture. With sophisticated financial crimes and stringent regulatory requirements on the rise, the need for advanced, scalable, and proactive risk management strategies is evident. AI-driven risk intelligence is not merely a future solution but a current necessity to stay ahead of financial crime.
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