Banking newcomer Volt is leveraging a fraud protection solution from IBM which uses AI and machine learning to analyse behavioural and fraudulent patterns.
During today’s Data and AI Forum hosted by IBM, the challenger bank announced it integrated IBM’s Safer Payments solution into its online banking platform 10 weeks ago.
IBM Safer Payments uses both financial and non-financial data together with a customer’s transaction history, to perform rigorous authentication and profiling on each and every transaction. Potentially fraudulent transactions are quickly identified – allowing them to be stopped or put on hold pending further validation.
The insights from the platform are used to build and adapt predictive models of emerging fraud threats and recommend countermeasure responses.
Delivered via IBM’s business partner ISW, Volt signed on to a start-up friendly pay-as-you-go licensing model, provisioned in a hosted and managed environment, without a large upfront capital investment.
“This partnership is another demonstration of Volt’s dedication to providing its customers with best-in-class safety and security features offered through leading providers like IBM and ISW,” said Steve Weston, CEO and co-founder of Volt.
“Online and mobile payment practices have made fraud detection much more challenging. Response times of payment service providers are shrinking due to real-time payments, which is then reducing the window to detect fraudulent activity. Banks that can prevent losses while also avoiding incorrectly classifying genuine payments as fraud, can realise and enjoy a competitive advantage.”
Katrina Troughton, Managing Director of IBM ANZ said, “With financial crime becoming increasingly sophisticated in Australia, banks are facing the challenge of meeting their customers’ evolving expectations for a frictionless transaction, while also ensuring their security.”
ISW financial lead, Bo Mabry, said, “Like any true neobank, Volt relies on agility and flexibility to build a foundation that will rapidly scale. Hosting the IBM Safer Payments software on the ISW Platform-as-a-Service model enables just that.”