Machine Learning Helps Banks Cut Fraud and Prep Stress Tests

Financial Times explores the role of machine learning in financial services organizations’ risk management strategies, including fraud detection, anti-money laundering, and credit assessment. Alexey Utkin, Principal Solution Consultant in the Finance Practice at DataArt, highlights the ability of the technology to identify the subtlest fraud indicators and provide large-scale operational cost savings.

“Alexey Utkin, principal solution consultant at global technology consultancy DataArt, describes a recent case at a large bank when a fraud was thwarted by technology ‘that picked up the perpetrator’s activity because they used the scroll bar while logged in’. The real user preferred the track pad, and the machine learning technology was able to detect the anomaly because of its ability to interpret vast amounts of data.

Banks are reluctant to estimate the financial benefit of deploying machine learning in their risk management functions. But DataArt’s Mr Utkin says the potential cost savings ‘are huge’.”

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