Nedbank uses FICO technology to build a Risk Intelligence Centre to enable an integrated financial crime risk management framework.
Global analytics software leader FICO today announced that Nedbank, one of South Africa’s largest banks, created an integrated financial crime risk management framework that uses FICO technology as part of the strategy to stop fraud, money laundering and other financial crime. Nedbank partnered with FICO to create the Risk Intelligence Centre (RIC), which consolidates relationships between entities and various financial crime risk factors into one comprehensive view. Nedbank has won a 2024 FICO® Decisions Award for applying AI, Machine Learning and optimization to financial crime risk management.
“Nedbank’s strategic collaboration with FICO reflects a dedication to staying ahead of financial crime threats, ensuring the safety of customer assets and maintaining the highest standards of integrity,” said Riana Horn, Risk Intelligence Centre, Nedbank.
Nedbank created an integrated financial crime risk management framework that not only enhances the prevention of financial crimes but also addresses related reputational and credit risks more holistically. Nedbank partnered with FICO to create the RIC, which consolidates data from multiple systems and decisions from different committees, streamlining processes such as offboarding relationships or closing accounts due to financial crime, and making this critical information available across the entire bank.
Partnering with FICO for Enterprise Financial Crime Risk Management
“We needed the right technology that could consolidate all relationships with an entity and integrate known financial crime risk factors into a unified view,” Horn said. “Our collaboration with FICO is reshaping the landscape of our financial crime risk management, providing a comprehensive and interconnected approach to safeguard against multifaceted threats.”
FICO technology powers the RIC’s consolidated repository through decision services, an application studio, and the FICO® Identity Resolution Engine. The decision service harmonizes all known risk information to make informed decisions. The RIC was designed to enhance existing decision engines and detection systems, spanning client compliance, credit affordability, suspicious transaction monitoring, transactional fraud detection, employment and supplier vetting, among others.
“A critical requirement was the establishment of robust identity resolution capabilities that can ingest data from internal and external sources,”Horn added. “That is the pivotal role played by the FICO Identity Resolution Engine. It enables the creation of a singular entity view, the clustering of links between individuals and organizations, and the identification of relationships with Nedbank. It will empower us to explore further degrees of separation between potential criminal groups and other accounts, staff, suppliers, etc. — these data separations allow financial crime to thrive. The sophisticated capabilities of FICO technology position us to proactively address and mitigate these risks.
“Through the Risk Intelligence Centre, Nedbank positions itself at the forefront of innovation in financial crime risk management, reinforcing its commitment to safeguarding its clients’ interests in an ever-evolving financial landscape,” said Nikhil Behl, chief marketing officer at FICO. “We are proud to be part of Nedbank’s innovation in tackling financial crime and protecting its customers and its reputation.”
About Nedbank Group
Nedbank Group is a bank holding company listed on the JSE, with a market capitalisati
on of R109 billion at 31 December 2022. Nedbank is one of Africa’s largest banking groups, with operations in South Africa, Namibia, Eswatini, Mozambique, Lesotho, and Zimbabwe, and offshore in the Isle of Man and Jersey. It also has representative offices in other Africa countries, including Kenya, and has key global financial centres to provide international banking services for SA-based multinational and high-net-worth clients in London, Toronto, and Dubai. The group is a diversified financial services provider, offering a wide range of wholesale and retail banking services, as well as insurance, asset management and wealth management solutions.
Source: Yahoo! Finance
