Improving the fight against fraud with digital transformation
By Jon Deiulis
As my colleague, Neer Lazar, talked about in one of his previous posts, The biggest upcoming trends in fintech, advances in technology within the financial services industry are constantly evolving. From incorporating AI and chatbots to offer more personalized services to mobile payment services like Apple Pay, these digital transformation trends offer financial institutions ways to streamline operations and improve customer service. But with these advances, companies need to ensure that the protection of both their customers and their business remains priority #1.
Fraud prevention and protection challenges
All financial institutions have their own processes for managing their fraud prevention and protection efforts. For many, it involves investigating potentially suspicious or fraudulent transactions and activity based on a number of manual measures — phone calls and emails from customers, messages from other departments and stakeholders, auto-generated system reports, and more.
While this process gets the job done, it’s certainly not effective or efficient. Why? Employees are spending a large amount of their time bouncing between systems and files to investigate potentially fraudulent activity, and then manually having to enter data and fill out reports – many of which are federally mandated. There’s a number of risks and inefficiencies associated with manual data entry, especially when it comes to people’s financial information.
Due to the fact that these manual processes take much more time than they need to, both the customer and business are at more risk than necessary. The customer is at risk for potential financial loss as they await the outcome of an investigation, and the business is at risk of potential fines from governing bodies overseeing them. When it comes to our finances, we all want potential fraud to be investigated and reported on as quickly as possible.
Digital transformation is here to help
Luckily, we can leverage technology to help us solve the challenges our businesses face on a daily basis! Process automation is a digital transformation option primed for fraud prevention and protection within financial services.
Process automation does exactly what its name says — it automates processes. So when applied to this particular use case, it can help automate the detection of potentially fraudulent activity, notify the relevant investigator(s), expedite the completion of the investigation, and submission of any reports.
How? Creating an automated process eliminates the need for employees to manually bounce between systems and reports to investigate suspicious activity, as the new digital solution will combine it all into one easy-to-use interface. It can integrate with all the various back-office systems and applications a business already has in place, and can help auto-fill information from these data sources so there’s no more risk of incorrect manual data entry.
By dramatically reducing the amount of time spent and mitigating manual intervention required by employees, companies can streamline their anti-fraud efforts, improve operational efficiencies, increase employee satisfaction, and most importantly, better protect customers and the business.
Want to learn more?
Payoneer is a fintech company that provides business-to-business money transfers, digital payment services, working capital, and cross-border transactions in 200 countries and 150+ local currencies. Like many in financial services struggling with everything I just talked about above, Payoneer was looking to automate its anti-money laundering case identification, investigation, and report completion to reduce the amount of time and manual effort required by employees, and improve its business and customer protection.
We sat down with Payoneer to talk about how they automated its anti-money laundering process, what the new process looks like, and the results they’ve seen to date. Watch now!
About the author
Jon has over 10 years of experience in Healthcare IT, providing services in both payer and provider organizations. He’s responsible for delivering custom solutions to our clients and is passionate about improving how healthcare is delivered through technology. Born and raised in the Boston area, he’s an avid fan of the Celtics, Patriots, and Red Sox and if there isn’t a game on he’s probably playing with his dog Sully.