Post on 15-Jan-2017
© 2016 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
Enterprise Fraud Management
Cindy WhiteSenior Director Product Marketingcindywhite@fico.com
© 2016 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
www.fico.com/enterprisefraud
© 2016 Fair Isaac Corporation. Confidential. 2
Agenda
• Introduction • Recap Priorities for CROs• Need to Adopt Holistic View• How Do We Get There?• Conclusion
© 2016 Fair Isaac Corporation. Confidential. 3
Fraud and Financial Crime Trends
535 million consumers acrossthe globe will make a purchase
via mobile this year.1
Account Takeover now attributes for
40% of eCommerce Fraud.2
US eCommerce fraud losses will increase to approximately $3.6
billion by 2018.3
Every two seconds,there is a new identity
fraud victim in the U.S.3
1Goldman Sachs2Forrester Research: eCommerce Fraud Management Solutions 2014 3 2015 Identity Fraud Study by Javelin Strategy & Research3 Forrester Research: The Forrester Wave: Enterprise Fraud Management, Q1 2016
© 2016 Fair Isaac Corporation. Confidential. 4
Fastest-growing Channels Are Also the Ones Most at Risk
Online MobileTablet and Smartphone
© 2016 Fair Isaac Corporation. Confidential. 5
The Million Dollar Question
So how then do webalance reduction of fraud losses with protecting customer experience?
© 2016 Fair Isaac Corporation. Confidential. 6
Risk Officers Take on Diverse Challenges
CustomerExperience
Reduce customer
impact and include
consumers as an extra layer of
defense
Operational Efficiency Reduce my operating expenses through
automation, shared
capabilities and self service
FraudRisk
ManagementProtect my
organization and my customers from financial crimes while allowing my
business to grow
Compliance and Reputational
RiskHelp me to be
more compliant and reduce brand risk
© 2016 Fair Isaac Corporation. Confidential. 7
Top Technology Incentives for 2016
1Respondents were asked how likely their firms are to work on this initiative and how confident they are in their firm’s ability to execute it in the next 12 to 18 months.Respondents ranked Likelihood and Confidence on a 5-point scale (5 = Extremely Important / Completely Confident and 1 = Not at All Important / Not at All Confident.)The graph shows the percentage of responses who selected 4 or 5 on the scale.n = 152Source: 2016 CEB Retail Banking Technology Agenda Poll; 2016 Retail Banking Leadership Council Agenda Poll.
86% 83% 79%70% 68% 68% 64%
47%45%
30%
Improving digital
account origination
and onboarding (i.e., online and mobile)
Using analytics for marketing and sales
Delivering useful
smartphone push
notificationsto customers
Upgrading the online banking
solution to handle more
complex customer
tasks
Using analytics for
fraud detection
Integrating customer
information siloes
Implementing next-
generation digital
authentication solutions
Selecting a mobile
payments platform
Modernizing core banking
systems
Working with start-up financial
technology companies
Likelihood and Confidence in the Firm’s Ability to Execute Key Technology Iniviatives1
Percentage of Retail Banking Executives, Global, 2015LikelihoodConfidence
© 2016 Fair Isaac Corporation. Confidential. 8
How Can We Leverage What We Know Across New Channels?
Cards
Savings
Lending
Retail Banking
Customer
Organizations Need to View Customers in the Context of Their Entire Relationship
© 2016 Fair Isaac Corporation. Confidential. 9
A Holistic Approach
Enterprise-widefraud management
Prevention
Detection
Resolution
ReputationRegulationCustomer ExperienceOperations
© 2016 Fair Isaac Corporation. Confidential. 10
How Can We Leverage What We Know Across New Channels?
Decision Points
Savings
Lending
Retail Banking
Cards
Business Units Data WarehouseMarketing
AuthorisationsLimit
ManagementCollections
Fraud
Pre-delinquency
Re-issue
CustomerLevelData
Organizations Need to View Customers in the Context of Their Entire Relationship
Option 2
© 2016 Fair Isaac Corporation. Confidential. 11
“What impressed us most, was that even as an industry leader, FICO has notbecome complacent, but continues to innovate.” CEB Tower Group
Innovative Analytics Solve Complex Problems Across the Enterprise
Neural network
Patented Profiling Technology
Outlier Models
Device Profiling
Analytics
Collaborative Profiles
Adaptive Analytics
Text Analytics
Behavior Sorted Lists
© 2016 Fair Isaac Corporation. Confidential. 12
“FICO Falcon will helpmake our customers’everyday lives easier by improving security and protecting them against fraud.This is a milestone for us, our partners and our customers.”Freddy Syversen, Chief Executive Officer,
EnterCard, Nordic Card Issuer
Customer Opinion
© 2016 Fair Isaac Corporation. Confidential. 13
Analyst Opinion
…This moves away from a ‘monolithic’ approach and focuses on providing channel- and business line-specific information to different users in a way that aligns to their use and management of the Falcon solution.”
“What impressed us most was that, even as an industry leader, FICO has not become complacent, but continues to innovate. It continuously evaluates and refines its strategy toward holistic enterprise fraud management…
Jason Malo, Research Director,Retail Banking and Cards Practice
CEB Tower Group
© 2016 Fair Isaac Corporation. Confidential. 14
FICO’s Approach to Building the Holistic Solution
Fundamental• Agility• Integration• TCO
Infrastructure
Differentiation• New products• New services
Customization
Innovation• Channel specific• Dynamic• Customer
experience
Analytics
© 2016 Fair Isaac Corporation. Confidential. 15
FICO® Falcon® Platform
ANALYTICSCUSTOMIZATION Infrastructure
© 2016 Fair Isaac Corporation. Confidential. 16
FICO® Falcon® Platform
Real time event monitoring and decision platform
Transactional payment processing and monitoring
Across channels:Payment and non-payment cards, deposits, mobile
© 2016 Fair Isaac Corporation. Confidential. 17
FICO® Falcon® Platform Offer Details
What is included in the Base Falcon Platform?• Event Processing Engine (Falcon Scoring Engine)• Data Specification Support and Processing • Falcon Expert Rule Management Application• Falcon Programming Interface (FPI) to Interface with External
Systems• Standard UDV Profiling (Service, Account, Customer)• Reporting• Falcon Case ManagementWhat is NOT included in the Base Falcon Platform?Platform Modules • Analytic Models/Scores―consortium or custom models and
scores• Extended UDP Profiling (up to 10)Software Add-ons• Non Falcon Products (AFM, MMA, Etc.)• Adeptra, IRE, etc.Custom Solutions • Investigative Case Management, Simulation and Optimization,
etc.
© 2016 Fair Isaac Corporation. Confidential. 18
FICO® Falcon® Platform Modules
Modules that can be deployed to run on the Falcon PlatformPackaged Consortium and Custom Analytic Modules• Analytic Modules—Credit, Debit, Direct Deposit
Accounts, Online Banking• Analytic Module Add-ons—Global Intelligent
Profiling, Fraud Predictor, Adaptive Analytics
• User Defined Profiles (profiles for merchants, IP addresses, etc.)
• Consulting Built Rule Sets
© 2016 Fair Isaac Corporation. Confidential. 19
FICO® Falcon® Platform Software Add-ons
Software and tool add-ons that can be integrated with the Falcon Platform or run alongside the platform• IRE (Link Analysis)• Fraud Resolution Manager• Application Fraud Manager• Merchant Monitoring
© 2016 Fair Isaac Corporation. Confidential. 20
FICO® Falcon® Platform Custom Solutions
Modules that can be built as complementary solutions or add-ons for use with the Falcon Platform• Custom Solutions• Investigative Case Management• Business Intelligence• Simulation and Optimization• Model Management
© 2016 Fair Isaac Corporation. Confidential. 21
FICO® Falcon® Platform
ANALYTICSCUSTOMIZATION Infrastructure
© 2016 Fair Isaac Corporation. Confidential. 22
New Technologies Improve Customer Experience
Behavior Sorted ListsIdentify “favorites” in a cardholder’s favorite entities
AdaptiveAnalytical ModelSelf-learning models that understand changing patterns
Collaborative ProfilesIndividualized predictions, sensitive to collective behaviors
Self-Calibrating AnalyticsModels that don’tequire huge initial outlays of data
Product Technology• Adeptra Integration• Addition of Linux,
Tomcat and Couchbase
© 2016 Fair Isaac Corporation. Confidential. 23
Benefits of Upgrading to the Falcon Platform
• Highest level fraud detection
• Wider fraud detection • Customer-level detection
Reduce Losses
• Total Cost of Ownership (TCO)—Single stack support for transactional fraud monitoring
• High performing stack with open source componentry
ROI
• Improved compliance and reputation management
• Customer-level fraud management
Customer Experience
• Budget certainty• Simplified contract • No volume limits
Operational Gains
© 2016 Fair Isaac Corporation. Confidential. 24
1991 1996 2001 2006 2011 20150
5
10
15
20
Card Fraud
Year
Basis
Poi
nts
Falconintroduced
Fraud Analytics – Technology Underpinning
Percentage of credit card accounts in the
world that are covered byFICO Fraud Solutions
65%
The Nelson Report July 2015 Card Fraud Worldwide
© 2016 Fair Isaac Corporation. Confidential. 25
Analysts Opinion
TONBELLER is complementary to FICO and provides a strong
strategic fit
2015
2016FICO is a leader in The Forrester Wave™: Enterprise Fraud Management, Q1 2016
2015Dominant Vendor in Enterprise Fraud Management Systems Market Update
A “Best in Class” Solution in Enterprise Fraud Management Technology Analysis’ Four Categories:• Fraud Detection• Workflow Management• Business Process Improvement• Enterprise Support
2015
© 2016 Fair Isaac Corporation. Confidential. 26
Customer Opinion
“Our objective is to provide unsurpassed fraud protection to our customers. Falcon Fraud Manager gave us the real-time detection and it enables us to manage fraud for all customers’ cards from a single platform.”
Paul Mathias, Head of Fraud Risk ManagementABSA, South Africa
© 2016 Fair Isaac Corporation. Confidential. 27
A Holistic Approach
Enterprise-widefraud management
Prevention
Detection
Resolution
ReputationRegulationCustomer ExperienceOperations
© 2016 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
Thank You
Cindy WhiteSenior Director Product Marketingcindywhite@fico.com
© 2016 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent.
www.fico.com/enterprisefraud