FinovateFall is right around the corner, as hard as that is to believe (how is it already fall?). This is always one of my favorite events, as startups and established players introduce their latest financial technology innovations and inventions. This year, I’m excited to be participating on the main stage as I help FICO unveil its newest innovation, Falcon X.
Financial crime activity is accelerating at an unprecedented pace, and the good guys are losing the war. The United Nations Office on Drugs and Crime estimates that between 2% and 5% of global gross domestic product is laundered annually, which translates to between US$800 billion and US$2 trillion per year. Less than 1% of this is caught, even as businesses worldwide spend tens of billions of dollars annually on technology and staff to combat money laundering.
Fraud is also a painful and evolving problem. Organized crime rings are applying automation and social engineering tactics to the more than 14 billion data records that have been lost or stolen since 2013, resulting in mounting application fraud, account takeover, and card-not-present fraud losses for firms around the globe. Faster payments truly equate to faster fraud, and organized crime rings are leveraging the industry’s innovations in faster payments to speed and further obfuscate their criminal activities.
In the face of these challenges, many banks and fintech firms are making substantial investments in advanced analytics that can help them harness the power of internal and external data sources. The rise of the citizen data scientist and the democratization of model building are providing new opportunities for financial services firms to rapidly evolve their detection capabilities to keep pace with rapidly shifting criminal tactics. An increasing number of these implementations are taking place in the cloud, which can facilitate greater nimbleness and scalability than traditional on-premises installations. The net result of these innovations provides better customer experiences with fewer false positives and vastly improved detection capabilities.
Join me in New York next week to learn about the range of new innovations coming to financial services—including the latest and greatest ways to secure payments and the customer experience. If you haven’t made your plans to attend yet, register today with promo code FKV2348AIW to save 20% off your conference fee. I look forward to seeing you there!