Feedzai’s Post

Transcript

All financial institutions that we're talking to have been investing in and looking at cloud technology for its inherent benefits of scale, flexibility and adaptability. From a fraud perspective, this becomes even more important. Hello, this is Jas Anand and welcome to the Feedzai Fraud and Financial Crime Update. There's way more data available today than fraud departments are even taking advantage of or using. The good news is cloud-based modern architecture has that ability to scale and interrogate that data in real time to make decisions on customer interactions as they occur. But it also moves the onus of protecting that data and maintaining those applications on the service provider, freeing up time and resources for the fraud department to focus on strategy, and innovation, and keeping up with the latest threats and trends. One of the biggest mistakes financial institutions make is they take legacy approaches to deploying new technology. By that, what I mean is they'll take their legacy APIs, their old data infrastructure that was connected to their old technology, and try and point that to a modern cloud-based stack. Unfortunately, this just replicates the data inconsistencies and challenges that they had to overcome to deploy the legacy technology, and it can lead to lower detection and less optimized capabilities. So the first lesson is don't replicate your legacy issues on modern technology. Another common mistake financial institutions make is selecting the wrong technology partner. Having the wrong technology partner that either isn't skilled in managing cloud environments or is investing in moving previously on-prem deployments into the cloud - a lot of their investments may be spent on, unfortunately, just moving their applications into cloud-based environments. So picking the right technology vendor, not only from a platform perspective, but an implementation partner, is very important. And then lastly, some institutions try and do too much. They try and do every channel across every business line in a very abrupt fashion. This is sometimes driven by contracts ending with legacy vendors and financial institutions being forced to make decisions with short timelines. So try not to do too much and make sure you have enough runway to plan the changes that are required for a large-scale digital transformation. But what is the right balance between my specific channel solutions that are working okay - my check fraud solution that works only for checks, or my credit card solution that works only for credit card - versus transforming and moving to a modern stack? And which channels do I move first? Which products do I move first, and how do I eventually get to a place where I���ve modernized all of the technology stacks? And really, that is a complex question. And what I've seen financial institutions do is really focus on the MVP and the business case to achieve that MVP. And what we've seen is the area of greatest need and improvement is on digital channels. That's the area where there's the most investment, the greatest sophistication of fraud losses. And so one of the no-regrets areas to start to shore up is digital. We believe that it's going to be the channel of the future. And the majority of the volume will be digitally based. But you still have to wrestle with how much of my investment do I make to ensure that the current capabilities for check and or credit card also continue to evolve? I think the middle ground where you look to take advantage of the digital technologies you're investing to improve check and card fraud detection, helps bridge the gap between sophisticated capabilities for specific channels, and then slowly migrating the remaining channels. If you're enjoying our content, please subscribe and share. Stay tuned and watch for more information on customer-focused strategy. Thanks for watching, this has been Jas Anand with Feedzai. And I'm. Honestly, it is that. I mean, the first step is there's going to be a lot of effort, research and deployment by an organization to move to the cloud. And some of the skills required in delivering a service in the cloud are not the same as the skills required to deliver a platform where a client is managing the environment. required to deliver a platform where a client is managing the environment. And so there's upskilling, there's learning, there's new resources that will have to be involved. And, you know, just because they've had a legacy product that's deployed on prem for ten years doesn't mean that that experience translates directly to the cloud. You know, picking a vendor that's cloud first, their platform has been enabled in the cloud and is built for the cloud. You know, they've sort of solved all of those problems for delivering in the cloud at scale with large institutions. And so their research and development is now aligned with financial institutions where they're spending money on building better models, building better features into the platform to be more adaptable and flexible when fraud changes and to take advantage of more data within the platform. And so, you know, it's a question of, you know, the priorities of the organization and aligning them to the strategy for, you know, the fraud department within the financial institution. The main things to think about as you think about your fraud strategy is, first, having a layered defense, it's just not enough to focus on authentication and expect strong authentication to solve the problem. We've already seen, you know, institutions that have really strong authentication. We've seen the criminals migrate to scams where they took the customer and leverage the customers good authentications to still steal money. So having a layered defense that focuses on the front line, which is authentication, but also includes, you know, behavioral models that can identify unusual or suspect behavior in both the customer's interactions as well as their transactions, should be an important part of that layered defense. And finally, you know, Sir. Hi. This is Jasmine. And, with, value engineering team at visa. I actually value Jane. I don't even know my title. I should double check it. sorry. When I say, I know you have outros here. I'm just going to say team feeds. yeah. Yeah, you could say. Yeah. Exactly, exactly. hello, everyone. This is Jasmine Hunt, and I'm part of the fraud team that feeds, well, in just, one more option where it's just, you know, that's. It almost sounds like you're going to say something else, and and and and stuff. It's just like, you know, complete sentence. hello. This is Jasmine, one part of the fraud team at visa. That was great. One more exactly like that, please. hello, this is Jasmine and part of the fraud team at visa. That was great. And then, and then an alternate, intro where you say, you're, you know. Hi. This is just learned, and this is, love this. People can never remember. The title is Fraud and Financial Crime update. hello, this is jazz and and and welcome to the Feeds of Fraud and Financial Crime Update. That was great. Yeah. Perfect. First, can you just do one more? Hello, this is Jasmine. And then welcome to the feeds AI Financial Crime and Fraud update. It was the Fraud and Financial crime update hoax. All right. so, hi, this is Jasmine. And and welcome to the feeds AI Fraud and Financial Crime update. That was perfect. And then, outro. So, generic outro, like, so, just, have to, think about because I'm not necessarily sure how I'm going to break up these videos yet, but I think I'm going to break it up into two or maybe three. So, so the first part of an outro is I was hoping to get, something to the effect of watch for more content around cloud migration, or watch for more content around are all the topics that we covered. Basically, like in case I want to do a whole spot on scare, you know, watch for more content around scams or watch from a concert if you can. Just give me a bunch of options there. But based on the topics that we did, that would be helpful. Yeah. stay tuned and watch for more content on scams, real time payments and, AI and machine learning evolution for fraud management does great. And maybe just think, a couple more options where it's where you take 1 or 2 of those things. Yeah. Sorry. stay tuned and watch for more information on scams and how they affect financial institutions. watch for more information on real time and its implications on fraud losses and customer experience, and watch for more information on current tools with artificial intelligence and machine learning, how criminals are using them, and how financial institutions can adapt and respond. That was great. and if you could say, and if you can give, just give me the I only need one because I can stitch it together with a bunch of different things. But if you can say, if it's if I'm releasing a weekly update and, continuing next week, we'll discuss. And if you just pick one thing because I might stitch some sentences together. But if you just say, you know, continuing next week, we'll, we'll discuss what a scams and whatever you just said. so so continuing next week, we will discuss scams and, you know, how they're affecting the population. continuing next week, we'll discuss real time payments and its implications on fraud. And continuing next week, we'll discuss artificial intelligence and novel approaches to detecting fraud in financial crime. That was fantastic. And then, and then the second part of the outro, which is, thanks for watching this has been, jazz and done with pizza. Thanks for watching. This has been jazzed with pizza. And just maybe one more version. Thanks for watching. This has been jazz and with pizza. And then, one social media thing I think is important for some channels is, just to say, you know, my purpose in somewhere in this part is that if, if you're enjoying our content, please subscribe. Or, also, if you're enjoying our content, please subscribe and share as you're joining our content. Please subscribe and share. Please subscribe and share. It just one more. One more person then yeah. If you're enjoying our content, please subscribe and share. You know, that's great. And then, let me see. I think that you can step up the video now if you want. let me just double check my. Cloud technology. Stay tuned and watch for more content on cloud based modern architecture for its inherent benefits of scale, flexibility, and adaptability.