© 2018 Fair Isaac Corporation. All rights reserved. 1

EXECUTIVE BRIEF

FICO’s financial crime ecosystem works across the customer lifecycle to help you:

Reduce fraud losses

Improve the customer experience

Improve efficiency and lower cost of case management

Stay compliant with regulation

In an always on, digital environment, those involved in preventing financial crime are sometimes seen as an impediment to providing a smooth customer journey. Security and financial crime checks are vital to protect both customers and the bank, but poorly managed, they prevent new customers from opening accounts and cause friction that changes how customers use the bank’s services. In the worst case, it could cause customers to leave.

Data breaches have given criminals access to increased amounts of personal data. They can use it to open accounts with stolen or synthetic identities or take over the accounts of existing customers. When you can’t balance managing these risks with offering customers a good experience, consequences include:

• Increasing fraud losses

• Preventing legitimate customers from opening accounts or carrying out their business

• Making processes so inconvenient or difficult that customers leave

• Failing to comply with legislation, such as anti–money laundering

FICO’s financial crime ecosystem offers solutions that protect banks and their customers and help deliver an enhanced customer experience across all interactions—throughout the customer lifecycle.

EXECUTIVE BRIEFFighting Financial Crime While Improving the Customer Journey

© 2018 Fair Isaac Corporation. All rights reserved. 2

Originations and applicationsNew business is great, but you need the right kind of customers. If you don’t understand the likelihood of financial crime quickly, you could be taking on additional or unnecessary risk. The further into the originations and application process you go, the more time and cost is invested.

Data to help you make accurate decisions is available from a wide variety of internal and external sources, with many third-party providers. The challenge is deriving insight from this data deluge. FICO’s solutions orchestrate data from all sources to provide you with understanding about customers and prospects as early in the process as possible.

Our solutions ingest and enrich data from internal and external data sources and apply advanced analytic techniques. This helps you make robust decisions based on the best use of available data so you can better manage fraud and money laundering.

By assessing financial crime risk as early as possible, you can identify the applications you don’t want to progress before incurring the cost of processing them.

We help you to:• Stop application fraud at point of origination, including

identity theft, synthetic identities, bust-outs and straight-rollers.

• Manage fraud from one platform for all identity solutions and channels.

• Orchestrate data effectively—manage internal and third-party data sources to provide an integrated approach to generating scores and making decisions.

• Leverage superior machine learning analytics, fuzzy matching and policy strategies to promote faster, more accurate and smarter decisions.

• Identify and visualize applications from organized criminal gangs by showing common data points across multiple applications—even if they appear unrelated at first.

• Meet your KYC obligations and assess applicants for money-laundering risk.

• Make decisions in real time or batch depending on your requirements for each process.

Throughout the customer lifecycleYou need to continuously protect your organization and your customers from financial crime across the customer lifecycle. It’s important to understand activity happening across all channels and manage the delicate balance between avoiding financial crime and stopping genuine customers from carrying out legitimate activity. FICO solutions assess account activity including:

• Online/digital account access

• Authentication data

• Non-monetary transactions, such as changing account information

• Credit transfer transactions, including real-time payments

• Credit and debit card transactions, including card not present

Existing customers, new products New customers

Their previous behavior with you: Is the prospective application for a product that you would expect this customer to be interested in?

Source of the application: Did you actively market to them or was it an unsolicited application?

Identity authentication: Is the application genuinely from your customer or has there been an account takeover?

Information about individuals they have links to such as existing customers or co-applicants.

The types of new product under cconsideration: Could they be looking to increase available funds for a bust out fraud?

Risk levels associated with the product they are applying for.

Your interactions with them: Did you invite them to apply for the product?

Are they applying using a channel that you would expect for that type of person?

You will have different questions and different data for new or existing customers

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EXECUTIVE BRIEFFighting Financial Crime While Improving the Customer Journey

FICO layers multiple machine learning techniques and scoring to identify suspicious activity in all types of transactions. Shared insight from 9,000 contributing organizations means improved accuracy that identifies real cases and limits false positives that disrupt the customer experience. As new developments such as real-time payments, open banking or new fraud types emerge, we can deploy the right combination of supervised and un-supervised machine learning models to deliver the best results as change happens. Our solutions are deployed in real time to deliver:

• Better fraud detection

• Accurate identification of money-laundering activity

• Less disruption to customer experience for legitimate accountholders

• Fewer false positives that take up valuable case management resource

As customer relationships develop, more customer data becomes available. Our solutions continuously incorporate this data into the customer profiles, and update models dynamically to take the latest risk factors into account. With this insight, you can treat each customer as an individual and identify when there is higher risk activity, as well as improve their experience when low risk activity occurs.

Managing casesAcross the customer lifecycle, financial crime or the risk of it may become evident. If cases are managed inadequately there can be consequences, including:

• Inefficiencies that waste resources and increase cost

• Inconsistency in customer treatment and communication

• Poor customer experience leading to loss of customers and reputational damage

• Non-compliant processes that lead to intervention by regulators

FICO offers case management capabilities to streamline the management of both fraud and compliance cases. Prioritization and automation help you progress cases appropriately so you can focus on those that pose the most risk. Integration with our customer communication capabilities enables communication with customers through their preferred channel. Cases are resolved more quickly, using fewer operational resources. This improves the customer experience and helps you to comply with banking regulations.

For more information,

visit www.fico.com/fraud.