Fraud Fighter Insights: The Power of Data within Orchestration
The significance of data is growing, changing and it’s proving to be more powerful than ever. GBG’s Head of Product - Fraud, Sav Pushparajah, discusses the good news, the bad news and the undeniable proof of the power of data.
Q1: How is data changing and growing?
Here’s the good news: At a global level, we are witnessing the most rapid expansion of the middle class that the world has ever seen – a brand-new and large-scale customer base. On average, 160 million people will join the middle class annually for the next 5 years. Taking a further look, 88% of the next billion entrants into the middle class will be in Asia. Now, that is a considerable number of new customers to start providing the necessary banking, insurance and other products and services they will seek!
Q2: What challenges do these changes pose to organisations?
Now for the bad news: There will be limited accessible information about these 160 million new middle-class customers. They may not have ever held a passport, a bank account or even a driver’s license. So, the question is this - how do you onboard these customers without taking on any fraud risk?
Q3: What is the most effective way for organisations to address data challenges?
The answer is simple, data. Data with variety, velocity, veracity and volume. What do we do with data? Examining the patterns and trends within big data – or more simply put, the human behaviour and interactions seen in customers. Taking this new-found insight whilst remaining compliant, we are ultimately able to determine who our new customers actually are.
And how do we leverage this information? Orchestration enables organisations to plug into an abundance of internal and external data sources easily, quickly and securely to improve an organisation’s overall fraud detection rates.
Q4: What results can organisations expect to achieve?
GBG helps thousands of financial services organisations around the world deliver safe, secure onboarding experiences for their customers. Recently, GBG deployed a new model at one of China’s largest and most reputable banks with fantastic results – the bank was able to accurately identify 80% of 600,000 fraudulent applications.
The bank leveraged five internal and two external data sources, analysing and filtering down 180 data points to 60 meaningful ones. This data cleanse is essential in guaranteeing more relevant data points, exposing previously undetected fraud. With this multi-variant model, the bank saw over 25% of the previously undetected fraud being identified - an overall improvement in the detection rate of 8%.
With this significant development, our solutions aim to help you and your organisation. We see just how powerful data is and we understand that with growth in the digital landscape, we need to remain ahead of the pack. Contact our team of fraud & compliance experts to find out how we can help you leverage the Orchestration Module and data – that way you can onboard more good customers, and protect your organisation from fraudsters.