New Tech & Digital Banking System Emphasizes Security

A roundup of three new fraud detection systems and tools using artificial intelligence and machine learning; and a new digital banking platform, all with financial security measures built in.

Rancho Cucamonga, Calif.-based CO-OP Financial Services unveiled COOPER, an advanced data-driven platform designed to detect and fight fraud by bringing more visibility to member activity and needs. COOPER provides state-of-the-art machine learning and AI to its client credit unions across the CO-OP ecosystem.

Todd Clark, President/CEO for CO-OP said. “COOPER will allow us to constantly improve upon the fight against fraud by enabling the understanding of huge amounts of data and detecting complex patterns rapidly.”

Beginning this summer, CO-OP will roll out COOPER Fraud Analyzer, an account-based risk management solution for CO-OP Shared Branch clients that will provide added protection to identify and prevent potentially fraudulent transactions. The company will subsequently launch COOPER Fraud Score, using machine learning to create a risk-scoring model that determines the level of suspicion for a transaction. This capability will be available on account-based products later this year, and for card-based products in 2019.

Brookfield, Wis. based Fiserv announced its partnership with fraud analytics firm Rippleshot to offer Card Risk Office Fraud Warning, an early breach detection solution that allows financial institutions to identify potential fraud events 30-60 days prior to network alerts.

With Card Risk Office Fraud Warning from Fiserv financial institutions can access information to help detect card-related fraud more quickly, as well as gain visibility to data about localized events networks. Fiserv will use this data, derived from machine learning, to inform and strengthen risk mitigation strategies.

“Data breaches continue to occur with increasing frequency, yet it can take time for financial institutions to confirm the extent of the compromise, making it imperative to identify and stop fraud as soon as possible and prevent further exposure and losses,” Patrick Davie, vice president, Product Strategy, Card Services, Fiserv said.

Fraud Warning also allows for the streamlining card reissues after breaches, reduces payment friction, augments existing risk rules and fraud mitigation strategies, and according to the company reduces losses by an average of 10 percent.

In launching its new flagship digital banking platform, Chelsea, Mich. startup Mahalo Technologies suggested it is pushing beyond omnichannel delivery to what it calls omni-experience digital banking.

Mahalo’s architecture provides a modular and scalable product, allowing for improved deployment and the ability to keep current with technological advances. A rich set of features works seamlessly across all digital channels to create a truly unique user experience.

“We’re pushing beyond mere convenience to add a real ‘wow factor’ to digital banking,” Mahalo president/CEO Alan Augustine said. According to Augustine, this includes building a better experience for credit unions and their employees. Security components and advanced data analytics are among the many features Mahalo is pioneering. Mahalo recently brought onboard both Jim Stickley, founder of Stickley on Security, and Ron Murray, founder of CUTEK, as investors and active advisors.

Chicago-based Navigant Consulting and Palo Alto, Calif-based Ayasdi announced they are collaborating to deploy artificial intelligence and machine learning to detect financial crime activity. The partnership combines Navigant’s expertise in financial crime compliance and understanding of the financial sector’s regulatory environment with Ayasdi’s machine-intelligence platform.

Together Navigant and Ayasdi said it will offer machine intelligence-based anti-money laundering, sanctions, and anti-corruption and anti-bribery compliance program enhancements to assist clients in better detect and deter financial crime.

“Our combined solution’s flexibility is superior to traditional, rules-based financial crime detection systems and it enhances our clients’ ability to adapt to the evolving threats of the modern financial crimes landscape,” Ellen Zimiles, head of Navigant’s Financial Services Advisory and Compliance segment, said “We are delighted to work with Navigant to serve our growing client base in the areas of anti-money laundering, sanctions, and other areas of financial crime,” Gary Hagmueller, Ayasdi COO said.