Enterprise-wide Risk Intelligence Centre analyses data from
across multiple systems to prevent fraud, money laundering and
other financial crime; Nedbank wins a FICO Decisions Award for
applying AI, Machine Learning and Optimization to financial crime
risk management.
FICO (NYSE: FICO)
Highlights:
- Nedbank uses FICO technology to build a Risk Intelligence
Centre to enable an integrated financial crime risk management
framework
- The Risk Intelligence Centre identified a crime syndicate
during the testing phase while initial production data was still
being loaded
- Nedbank has won a 2024 FICO Decisions Award for AI, Machine
Learning & Optimization
Global analytics software leader FICO today announced that
Nedbank, one of South Africa’s largest banks, created an integrated
financial crime risk management framework that uses FICO technology
as part of the strategy to stop fraud, money laundering and other
financial crime. Nedbank partnered with FICO to create the Risk
Intelligence Centre (RIC), which consolidates relationships between
entities and various financial crime risk factors into one
comprehensive view. Nedbank has won a 2024 FICO® Decisions Award
for applying AI, Machine Learning and optimization to financial
crime risk management.
More information: https://www.fico.com/en/fico-platform
“Nedbank's strategic collaboration with FICO reflects a
dedication to staying ahead of financial crime threats, ensuring
the safety of customer assets and maintaining the highest standards
of integrity,” said Riana Horn, Risk Intelligence Centre,
Nedbank.
Nedbank created an integrated financial crime risk management
framework that not only enhances the prevention of financial crimes
but also addresses related reputational and credit risks more
holistically. Nedbank partnered with FICO to create the RIC, which
consolidates data from multiple systems and decisions from
different committees, streamlining processes such as offboarding
relationships or closing accounts due to financial crime, and
making this critical information available across the entire
bank.
Partnering with FICO for Enterprise Financial Crime Risk
Management
“We needed the right technology that could consolidate all
relationships with an entity and integrate known financial crime
risk factors into a unified view,” Horn said. “Our
collaboration with FICO is reshaping the landscape of our financial
crime risk management, providing a comprehensive and interconnected
approach to safeguard against multifaceted threats.”
FICO technology powers the RIC’s consolidated repository through
decision services, an application studio, and the FICO® Identity
Resolution Engine. The decision service harmonizes all known risk
information to make informed decisions. The RIC was designed to
enhance existing decision engines and detection systems, spanning
client compliance, credit affordability, suspicious transaction
monitoring, transactional fraud detection, employment and supplier
vetting, among others.
“A critical requirement was the establishment of robust identity
resolution capabilities that can ingest data from internal and
external sources,” Horn added. “That is the pivotal role
played by the FICO Identity Resolution Engine. It enables the
creation of a singular entity view, the clustering of links between
individuals and organizations, and the identification of
relationships with Nedbank. It will empower us to explore further
degrees of separation between potential criminal groups and other
accounts, staff, suppliers, etc. — these data separations allow
financial crime to thrive. The sophisticated capabilities of FICO
technology position us to proactively address and mitigate these
risks.
“The RIC’s key advantage lies in its flexible design capability,
allowing us to incorporate new data without necessitating a
redesign of our core system architecture. This allows us to ingest
data dispersed across legacy and target architecture without any
major changes being needed,” said Horn. “The collaborative
synergy between FICO Platform and our evolving cloud architecture
will enable a seamless migration of the decision service to FICO
Platform in the next phase, preserving data integrity and
reinforcing our commitment to proactive financial crime
prevention.”
“Through the Risk Intelligence Centre, Nedbank positions itself
at the forefront of innovation in financial crime risk management,
reinforcing its commitment to safeguarding its clients' interests
in an ever-evolving financial landscape,” said Nikhil Behl,
chief marketing officer at FICO. “We are proud to be part of
Nedbank’s innovation in tackling financial crime and protecting its
customers and its reputation.”
“Nedbank's approach to financial crime risk management truly
stands out, showcasing a deep understanding of the interconnected
nature of risks across diverse relationships,” said Andrew
Birmingham, editor, Mi3 and one of the FICO Decisions Awards
judges. “The establishment of robust identity resolution
capabilities enabled a view of the clustering of links between
individuals and organizations critical to finding nefarious
activity. We were also particularly impressed by the innovative
thinking that went into breaking down the siloed structures typical
of banking operations.”
About the FICO Decisions Awards
The FICO Decisions Awards recognize organizations that are
achieving remarkable success using FICO solutions. A panel of
independent judges with deep industry expertise evaluates
nominations based on measurable improvement in key metrics;
demonstrated use of best practices; project scale, depth and
breadth; and innovative uses of technology. The 2024 judges
are:
- Andrew Birmingham, editor, Mi3
- Eric Kavanagh, CEO Bloor Group and host,
InsideAnalysis
- Elizabeth Lumley, deputy editor, The Banker
- Paul Mah, senior editor, CDO Trends
- Laura Martins, editor, IT Forum
- Paul Robinson, VP credit management at Canadian Tire
Bank (Previous Winner)
- Shiv Sehgal, EVP audience analytics at RSG Media
(Previous Winner)
- Nick Vitchev, director at Chartis
The winners of the FICO Decisions Awards will be spotlighted at
FICO® World 2024, April 15 – April 18, 2024 in San Diego,
California.
About Nedbank Group
Nedbank Group is a bank holding company listed on the JSE, with
a market capitalisation of R109 billion at 31 December 2022.
Nedbank is one of Africa’s largest banking groups, with operations
in South Africa, Namibia, Eswatini, Mozambique, Lesotho, and
Zimbabwe, and offshore in the Isle of Man and Jersey. It also has
representative offices in other Africa countries, including Kenya,
and has key global financial centres to provide international
banking services for SA-based multinational and high-net-worth
clients in London, Toronto, and Dubai. The group is a diversified
financial services provider, offering a wide range of wholesale and
retail banking services, as well as insurance, asset management and
wealth management solutions.
Learn more at https://www.nedbankgroup.co.za.
About FICO
FICO (NYSE: FICO) powers decisions that help people and
businesses around the world prosper. Founded in 1956, the company
is a pioneer in the use of predictive analytics and data science to
improve operational decisions. FICO holds more than 200 US and
foreign patents on technologies that increase profitability,
customer satisfaction and growth for businesses in financial
services, insurance, telecommunications, health care, retail and
many other industries. Using FICO solutions, businesses in more
than 100 countries do everything from protecting 2.6 billion
payment cards from fraud, to improving financial inclusion, to
increasing supply chain resiliency. The FICO® Score, used by 90% of
top US lenders, is the standard measure of consumer credit risk in
the US and has been made available in over 40 other countries,
improving risk management, credit access and transparency.
Learn more at https://www.fico.com.
FICO is a registered trademark of Fair Isaac Corporation in the
U.S. and other countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20240321135394/en/
FICO UK PR Team Wendy Harrison/Parm Heer/Matthew Enderby
ficoteam@harrisonsadler.com 0208 977 9132
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