October 11, 2018

Enhancing Risk Management with Machine Intelligence

Risk management remains one of the most critical areas of development for financial institutions: even though the average support center call is estimated to cost $4.00 in the US, adding up to a significant expense if a support center receives hundreds or thousands of calls per day – it does not compare to the cost and a damage of various forms of fraud to banks, consumers, and merchants. The Ingenico Group estimates that merchants lose on average 1.5% of their annual revenue to fraud attacks, which represents product and service losses, chargeback fees, and potential scheme programs. Meanwhile, identity theft and fraud cost consumers more than $16 billion. Risk management practices have evolved over the decades of stumbling upon emerging and traditional risks in banking, changing the bank-FinTech narrative from competition towards a hybrid strategy. Estimates suggest that 8 out of 10 institutions foresee making strategic partnerships with P2P lenders,…

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