Swedbank Partners with ACI Worldwide to Combat Fraud and Comply with SCA
July 06 2021 - 3:00AM
Business Wire
- Leading issuer and acquirer in Nordic and Baltic regions
enhances its fraud platform with ACI Fraud Management
- ACI’s machine learning capabilities and consortium data
underpin Swedbank’s strong customer authentication (SCA) exemption
strategy, contributing to a sizeable decrease in card fraud
ACI Worldwide, a leading global provider of real-time payments
and digital payment software solutions, today announced that its
partnership with Swedbank, one of the leading issuing and acquiring
banks in the Nordic and Baltic regions, has contributed to a 55
percent decrease in card fraud, helping to improve customer
experience and business growth for the Swedish bank.
Swedbank, like many other financial institutions across Europe,
had been under pressure to meet strong customer authentication
(SCA) compliance mandates. SCA, a new regulatory mandate under
PSD2, intends to protect consumers and businesses from fraud by
making it more difficult for fraudsters to make payments from their
accounts. Under the new regulations, consumers and businesses must
verify their identity with at least two steps of authentication.
SCA checks are mandated for every digital payment over €30 but can
be exempted if the merchant has demonstrated low levels of fraud,
for example.
The bank partnered with ACI to enhance its fraud platform with
the help of ACI Fraud Management and has transitioned from a
rules-based to a holistic fraud management approach – which now
applies insights from machine learning and shared data in addition
to rules – to exempt low-risk transactions from the SCA
requirements. Utilizing ACI’s model generator functionality allows
Swedbank to create and maintain their own predictive machine
learning models within minutes. The offering was recently enhanced
with shared intelligence, empowering the bank to collaborate and
build hybrid machine learning models.
“Utilizing ACI Fraud Management has allowed us to move from
single transaction monitoring to customer behavior monitoring, a
strategy that helps us to quickly identify low-risk transactions
and exempt them from SCA’s two-factor authentication requirements,”
said Tonu Ots, Head of Card Issuing, Swedbank. “This has led to a
considerable decrease in card fraud and helped to enhance the
customer experience, which is crucial to business growth in light
of average high checkout abandonment rates.”
“Swedbank has demonstrated that it is possible to turn the SCA
challenge into an opportunity,” said Jay Floyd, Senior Principal
Financial Crime Consultant, ACI Worldwide. “In addition to
delivering an innovative fraud management solution that maintains
compliance, manages exemptions and enhances the customer
experience, the bank has created a true market differentiator for
themselves and their clients by deploying the latest ACI
technology.”
In March 2021, Swedbank was recognized for its innovative
approach to SCA with the Model Risk Manager Award for Legacy and
Ecosystem Transformation by Celent.
To learn more about SCA, please visit ACI Fraud Management for
SCA and Exemptions and Multi-Acquiring and the Benefits for
Merchants.
About ACI Worldwide
ACI Worldwide is a global software company that provides
mission-critical real-time payment solutions to corporations.
Customers use our proven, scalable and secure solutions to process
and manage digital payments, enable omni-commerce payments, present
and process bill payments, and manage fraud and risk. We combine
our global footprint with local presence to drive the real-time
digital transformation of payments and commerce.
© Copyright ACI Worldwide, Inc. 2021
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and
all ACI product/solution names are trademarks or registered
trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in
the United States, other countries or both. Other parties’
trademarks referenced are the property of their respective
owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20210706005044/en/
Media Katrin Boettger katrin.boettger@aciworldwide.com
Phone: 0044 (0)7776 147 910 Dan Ring dan.ring@aciworldwide.com
Phone: 781-370-3600
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