As economies across the globe are shifting to digital payments, electronic fraud is rising exponentially with huge consequences to banks in terms of financial losses, trust and credibility. As per the Nilson report, it is anticipated that card frauds alone would amount to a whopping $30 billion worldwide by 2020. Meanwhile Real Time Payment (RTP) has taken the payments arena by storm, not only creating a disruption in both banking and payments but also introducing a whole new gamut of fraudulent activities that need to be dealt with in real time.
RTP facilitates account-to-account (A2A) money movement, instantly and irrevocably. It is estimated that both cash and other banking channels will soon lose volume to RTP. Financial institutions want to put in place enough security to prevent fraudulent activities without compromising on customer convenience. The FRM tools in use for traditional digital payment channels have been found to be lacking when it comes to RTP while the FRM tools that seem suitable for RTP are not compatible with conventional payment channels. An FRM tool that can bridge the gap between these diverse payment methods and make provisions for a multi-channel FRM is hard to come by.
RS IntelliEdge™, a highly scalable and highly available multi-tenant real-time Fraud and Risk Management (FRM) product from RS Software meets all the needs of the rapidly changing payments world. It supports multi-channel – cards to account (A2A) to biometric to RFID, traditional payments (POS, ATM, ECOM, ACH, etc.) and new age RTP and covers both in-flight and batch transactions. It incorporates a unique blend of rule based and model based scoring, such that every transaction is scrutinized by both systems to assign a risk score in the span of a few milliseconds. The system is benchmarked for 4000 transactions per second and is capable of handling up to 25% TPS beyond its benchmarked value without performance degradation.
RS IntelliEdge™ flaunts a robust rules engine that evaluates transactions using a system of intricate rules that can be easily created using a large spectrum of features that covers nearly every facet of a transaction including cross channel activity, consumer behaviour, past activity patterns and identity based aggregate statistics. The score generated by the rule engine is combined with the score received from state of the art machine learning models that give RS IntelliEdge™ the AI edge.
The product supports a complete workflow for responding to suspected fraud detected by the engine in a distributed manner so that multiple institutions can each work on suspects on their individual queues.
RS IntelliEdge™ is available in two flavours:
Both the versions support:
Both are cloud-ready and have been built using open source technologies and commodity hardware leading to low TCO.
RS Software has effectively implemented RS IntelliEdge – Central™ at the national level and is excited about making RS IntelliEdge – Banks™ available to member banks. Special customizations can be made for the banks that may help them to integrate this holistic solution with their existing systems.