Connect with us

Business

AI: BREAKING DOWN DATA SILOES TO PREVENT FRAUD AND REDUCE RISK

Published

on

AI: BREAKING DOWN DATA SILOES TO PREVENT FRAUD AND REDUCE RISK

Professor Jon Crowcroft, iKVA

 

Money laundering costs the UK economy £24bn each year, according to The National Crime Agency,  whilst the UN estimates that up to $2tn is moved illegally each year via large, multinational banks. The surge in financial crime, triggered by the pandemic, has huge implications for the finance industry, as areas such as Anti-Money Laundering (AML) come under heightened pressure to prevent fraudulent activity.

The pandemic has accelerated both the adoption of digital technologies and organisational readiness, with a third of financial institutions hastening the use of Artificial Intelligence (AI) and Machine Learning (ML) in their AML strategies to fight the growing problem. Firms are thinking strategically about future proofing their technical abilities, and AI technology can help them utilise existing data to pinpoint trends and identify risks, while conserving manpower by breaking down data siloes and enabling data discovery.

 

Preventing fraud

Fraud, whether this is money laundering, facility takeover or application fraud, represents a real hazard for the financial sector. The analysis of substantial, siloed datasets using traditional methods of fraud detection, requires significant investment of human time and labour to scrutinise datasets and generate accurate pattern predictions.

Professor Jon Crowcroft, iKVA

Jon Crowcroft

AI technology can accelerate the examination of vast amounts of information and identify suspicious patterns and behaviours in a fraction of the time that humans can. Using large data sets, that humans would be unable to process, also enables AI to learn fraudulent data patterns and so improve detection accuracy and frequency over time.

One branch of AI, Federated Machine Learning (FML), is currently being used by the Financial Conduct Authority (FCA) to monitor fraud on a global scale. FML uses the latest AI techniques to understand the patterns of fraudulent transactions which can then be deployed internationally on decentralised edge devices hosted in individual countries. Being deployed locally enables the FCA to avoid contravening local regulations about data transfer, while benefiting from the knowledge gained from the data models. The application of AI not only removes the expense of human interaction, it increases the ability of an organisation to detect fraud, since AI typically detects patterns more accurately than humans. In 2019, the FCA used AI technology to analyse 10,000 data points across 16 regulatory returns, including their Financial Crime Data, to identify potential outliers and produce analytics to highlight risk profiles.

AI technology has a similar application in financial trading. Analysis of trading can identify patterns and combinations of patterns, that are likely to indicate suspicious activity that would indicate investment fraud. Nasdaq has introduced a deep learning system to monitor for fraud in the more than 17.5 million trades done daily on one of the world’s largest stock exchanges.

 

U.S. Bank is using AI technology to unlock and analyse relevant data on customers, via deep learning, and identify potential transactions that may indicate money laundering. This has doubled the output, compared with the prior systems’ traditional capabilities, clearly demonstrating the efficiency of AI software in identifying anomalous activity.

Finally, Visa’s artificial intelligence (AI)-driven security helped financial institutions prevent more than AU$354 million in fraud from impacting Australian businesses between May 2020 and April 2021. The algorithm assesses more than 500 risk attributes in roughly a millisecond to produce a score of every transaction’s predicted fraud probability. This is then used to identify patterns and alert financial institutions to potentially fraudulent activity – before it even takes place.

 

Reducing risk

Accurately evaluating the financial risk of loan underwriting and credit applications, relies on multiple datapoints from a multitude of sources, which often have different search interfaces, requiring many and repeated searches to find information.

AI technology can overcome this by bringing all of these sources of information, such as bank statements, pay slips, tax filings, mortgage forms and invoices, together in one place, indexing and segmenting the data, and allowing this to be discoverable. This provides for better and more accurate results and means that decision sources can be quickly and easily identified and evaluated, helping to reduce business risk. Companies that estimated their profit from Big Data analysis have reported an average increase in revenue by 8% with a 10% reduction in costs.

 

Lost in translation

The finance industry generates huge volumes of data and, with a wealth of data sources worldwide, accessing filings, transcripts, research and news to discover changes and trends in financial markets in an efficient manner can be difficult – especially when the information is in different languages. For multinational corporations, operating on a global scale, time and money must be spent on translation services to understand the results.

However, Natural Language Processing (NLP) combined with Neural Networks and deep learning models, enable computers to understand the full meaning of information including sentiment and intent without the need for translation. So, advanced language agnostic AI tools, such as those developed by iKVA, enable finance operatives and regulators to discover relevant information, regardless of the source language.

 

Conclusion

The benefits that AI technology can bring to the financial industry are vast; saving time, reducing costs, improving compliance and reducing business risk. Many leading financial companies are now deploying AI on a global scale and starting to reap significant benefits, but AI is still in its infancy in the sector compared both to other industries and the potential of this technology. Appropriate utilisation of AI technologies is becoming paramount for the financial sector to reduce ever increasing fraudulent activity and to remain competitive.

Business

What Every Small Business Should Do

Published

on

By

The majority of the difficulties associated with establishing a business stem from failing to accomplish the small things correctly. The basics will lead you to the top, as any competent instructor has stated at some time.

If you’re thinking of starting a small business, make sure you follow these 10 small business rules:

1. You must keep track of your finances.

Lack of capital, is the leading cause of small business failure. You must undertake proper financial planning and fully comprehend the business levers that might affect your cash flow.

Do you purchase stock?

  • What amount of cash should you have on hand?
  • Do you have a system in place to collect money from clients?
  • How long do you have to wait for them to pay you?
  • Do you have any loans that you need to repay?
  • Do you rely on suppliers whose prices fluctuate according to market conditions?

 

2. You must create a data-driven culture.

The better your business decisions are, the more data you can track and utilize to make them. Business often necessitates certain “intuition feel” judgments, but it’s preferable to provide your instincts with as much knowledge as possible.
Tracking your company’s key performance indicators (KPIs) and understanding why they rise or fall may help you make decisions that will help you develop and stay on track.

 

3. You must participate in Lean Planning.

Rather of creating a long-written document that you utilize once and then file away, it’s critical to create a strategic and financial plan and track it on a frequent basis.

Planning is a continuous tool that should be used to understand the assumptions you have about your business and whether or not those assumptions are valid, or whether you need to make changes and adapt your assumptions.
60 percent of small companies in America fail due to a lack of cash, not a lack of profits—by utilizing Lean Planning, you can rapidly determine if you have made any financial assumptions that will have a negative impact on your cash. Maybe you assumed you’d get paid every 30 days on the dot.

By engaging in ongoing planning and then tracking the actual results of your business against your plans, you can quickly determine if you are getting paid every 45 days, and if so, you can increase your credit line quickly and appropriately, keeping your business cash healthy—before you get into trouble.

4. You must have a strategy in place for attracting and keeping top employees.

We are continuously on the lookout for top talent in our industry, therefore we make it a point to follow talent in our region on a regular basis and design outstanding retention programs and rewards.

Take some time to consider your company’s culture and what you want it to be, and make sure that culture is factored into your recruiting selections. We utilize LinkedIn on a daily basis to follow and acquire talent.

5. Every day, you must listen online.

Even if you just operate from 9 a.m. to 5 p.m. Monday through Friday, your business is “always on.” Every company should set up internet alerts to monitor what their customers are saying about them, their rivals, and the market in general.

Google Alerts is a fantastic (and free) tool for “listening” to what’s going on online. Be the first to know when a consumer leaves a negative review or when someone praises your company online. Use these methods to remain ahead of the conversation and capitalize on it. You need to get a business phone number too.

6. You must engage in marketing that generates a return on investment.

Small companies frequently tell us that they have no idea what marketing is. What should they spend their money on? Is it effective? Is it better to promote on the radio or on the internet? Should they believe the Groupon or Comcast salesperson who tries to persuade them to distribute discounts to the general public or buy local TV ads? What is it that works?

What does not work?

Small company operators should begin in venues that are both free and simple to access. Begin by forming relationships with local companies and company owners. Find out what it is that they do that is effective. Find out how visitors find your website and where they come from by using Google Analytics and your website.
Customers should be questioned about how they learned about you. And if you do decide to promote, make sure you know how to track it. Make a unique offer and keep track of it. Only provide one type of service or product. Repeat your successful marketing efforts after learning what works and what doesn’t. If you won’t be able to measure the results, don’t invest the money.

 

8. You must communicate with your clients.
Every company should communicate with its clients as frequently as feasible. If you own a retail store, talk to your customers at least once a week (if not every day). Discover what they enjoy—and what they despise.

If you own an online business, send a brief survey to your consumers or ask a few survey questions after they check out. Make a call to them. People enjoy talking and being asked for their viewpoint. Negative feedback might be difficult to hear, but it’s important to hear it and understand how you can improve your business for your consumers.

9. You need to know your competitors.

Both your direct and indirect rivals must be known and understood. You should always be aware of your rivals’ activities, including what they are doing, how they promote, and how they price their products.

You may be the only one of your kind in your town or sector, but that doesn’t mean you don’t have indirect competition. In my town, a small do-it-yourself tie-dye store has no direct competition.

They do, however, provide activity-based events and compete with all of the other businesses who host birthday parties and group activities. They also compete with other tie-dye merchants at Saturday Fairs and Markets. Even if they don’t have direct competition, they need to know how to position themselves against all of their indirect competitors.

10. You must have a larger goal in mind: a mission.

People like to work for companies that are more than simply a money-making machine. That isn’t to say that you can’t set sales or profit targets; it only means that if your employees believe they are part of a larger purpose, they will work harder and be more loyal.

 

Continue Reading

Business

5 Ways That Businesses Can Get the Most Out of Their Digital Marketing

Published

on

By

Everyone knows that the world of marketing has been changing for the last two or three decades. The days of traditional marketing through billboards, radio ads and television commercials are still around, but something new is taking the world by storm. Digital marketing is the way of the future and has proven to be more beneficial for businesses everywhere. It’s not that traditional, offline marketing is completely dead, but it is difficult for business owners to deny the power of digital marketing and what it can do for their businesses.

Because the world has changed so much, people have now moved online, so a business owner needs to learn how to market their products and services digitally. If they do not, there is a huge risk that they will not be around much longer. However, the problem is that most business owners do not understand digital marketing. To begin, most owners do not fully understand marketing altogether, and they go for hiring a marketing agency to do this for them. But now, when you add a digital aspect to this scenario, it makes it even more confusing to the owners. If a business owner starts with simply knowing what digital marketing can do for their business and how to get the most out of it, this is a great place to start.

 

  1. Utilize Email

If your business is not using email marketing yet, you should be. It is far from being dead, and many people are just beginning to tap into what it can actually do for their business. To make the most out of your digital marketing efforts, advertising your company through email is essential. It could very well be the foundation of your marketing online. Email is all about keeping the channel open to your customer who you might not have seen in a long time or being available to someone who is simply interested in what you have to offer. Send occasional, nurturing emails to your following and customers to keep the dream alive.

 

  1. Build a List

Next, you have to build a list. Many marketers and business owners will tell you that you must have a list in order to survive. Now, the list is nothing more than a collection of information from your customers that includes their names, numbers and email addresses. You need this valuable information so you can email them and get in touch with them when things are dry. To get the most out of digital marketing, you should always be gathering this information from them and storing it for future use. Gather this information by running online advertising to generate leads.

 

  1. Do More Videos

To be the absolute best at digital marketing, your business should be using more video. This is because research shows that consumers want to see videos above anything else online. They don’t want to see still images and text, but they want to see you rock it through the camera. The good news is that this isn’t hard to do with modern innovations. Use your smartphone to record simple videos of your business and use these clever videos as the creative part of your digital marketing to catch their eyes and stop them from scrolling. The other great thing is that you will feel more like a movie star for creating videos.

 

  1. Build a Following

Now, it’s also important to build your online following. These days, it’s all about how many people you have “following” you online. These people are your audience, which is one of your valuable assets online. Don’t think that these are just virtual people that offer you known value. They are actual people who follow your company because they might be interested in what you have. It’s important to always build your following online. Increase your page likes and your audience, and your products and services will practically sell themselves. YOu can run specific campaigns to increase your following.

 

  1. Learn How To Target

To get even more out of your digital marketing, learn how to target the right people. Remember, you are doing all of this online marketing in order to reach people in hopes that they will make a purchase with you. To do this, you have to put yourself in front of the right people, not just anyone. But be happy, because online marketing makes it easier to find your customers. Learn how to navigate with digital marketing to find your right audience, and this will also make you stronger as a whole in your company. You will know your customer’s pain points, what they need and what they’re saying.

If you put a bit more effort into your marketing effort by learning how to do it digitally, you can definitely increase your profit and get the most out of it. With the right strategies and a little education, you can make anything happen online.

 

Continue Reading

Magazine

Trending

Business2 days ago

What Every Small Business Should Do

The majority of the difficulties associated with establishing a business stem from failing to accomplish the small things correctly. The...

Business2 days ago

5 Ways That Businesses Can Get the Most Out of Their Digital Marketing

Everyone knows that the world of marketing has been changing for the last two or three decades. The days of...

News2 days ago

Transact365 launches seamless cross border payments in India

Transact365 enables merchants to transact locally in India Merchants can partner directly with Transact365 without needing to source local partners...

Banking2 days ago

Cloud technology in banking: Why adoption is on the rise

Alpesh Tailor, Executive Director at digital transformation specialist GFT   The banking sector has never shied away from innovation, whether...

Technology2 days ago

A Smarter World: What role will electronics play in 2022

There has been a sharp increase in technology and devices designed to make our lives simpler, faster and more productive...

Business2 days ago

Top 4 Electronics Development from 2021

Phil Simmonds, Chief Executive Officer of EC Electronics.   As we embark on a new year of business, it is a good time to...

Top 102 days ago

Investing in workforce intelligence now, leads to an optimised tomorrow

Michael Cupps (Senior VP, Marketing, ActiveOps) discusses four critical ways in which a new world of workforce data improves organisational...

CRACKING THE CRYPTO CODE CRACKING THE CRYPTO CODE
Business2 days ago

The Evolution and Challenges of Crypto Regulation

Cryptocurrency regulations are evolving quickly around the globe with authorities responding to developing risks professed by criminals exploiting the latest payment...

News2 days ago

Europe’s first blockchain neobank, BENKER, opens for pre-registration

BENKER(http://www.benker.io/) is to become the first officially licensed blockchain neobank launched in Europe following approval by the Bank of Lithuania under the Electronic Money Institution...

Technology5 days ago

AI-Powered Fraud Prevention for Digital Transactions

By Martin Rehak, CEO of Resistant AI Fraud is on the rise, thanks to the rapid escalation of digital channels...

Top 105 days ago

The future of retail trading

Joe Jowett, CEO of StrikeX   The 2020s look set to be the decade of the retail trader. As the...

Business5 days ago

Dissecting the expansion of online checkouts

Daniel Kornitzer, Chief Business Development Officer   Card payments have long existed as the preferred payment method for online consumers....

Business5 days ago

How bug bounty programs can help financial institutions be more secure

Rodolphe Harand, Managing Director at YesWeHack   Financial services have been one of the most heavily targeted industries by cybercriminals...

Business5 days ago

Resolving the unintended friction of Web 3.0

Marten Nelson, CEO, M10 Networks   Media is buzzing about Web 3.0 and the metaverse. Companies and investors are scrambling to get...

Wealth Management5 days ago

Predictions for Alternative Data in 2022

Neil Chapman, CEO of Exabel   2021 saw various firsts for alternative data. The $1.6bn flotation of SimilarWeb evidenced the...

News5 days ago

Why Zero Trust and securing the supply chain is key to post-pandemic recovery

Jim Hietala, Vice President, Business Development and Security at The Open Group   Banking and finance have grown to provide...

Finance5 days ago

Five predictions set impact the finance teams in 2022

By Rob Israch, GM Europe at Tipalti   The CFO now has a very different set of responsibilities in comparison...

Finance5 days ago

Three ways to reduce uncertainty in financial services marketing

By Patrick Costello, Senior Product Strategy Director, Optimizely    According to Bain & Company, uncertainty is one of the key factors affecting marketing...

Banking6 days ago

Bringing Automation to Banking

Ron Benegbi, Founder & CEO, Uplinq Financial Technologies   Automation is everywhere you look these days; from supermarkets to warehouses...

Finance6 days ago

Why financial services is stepping into a new era

by James Mingard, Head of Retail & Finance at Maintel   When comparing industries, financial services has arguably fallen behind when...

Trending