Swedbank has entered into a collaboration with ACI Worldwide to bolster its bolster its card fraud management approach.
The Stockholm-based lender has selected ACI Fraud Management solution. This will enable Swedbank to create and maintain their own predictive machine learning models.
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The solution was recently upgraded with shared intelligence to support the development of hybrid machine learning models.
All European financial institutions are required to comply strong customer authentication (SCA) mandates to reduce fraud. The SCA requires consumers and businesses to verify their identity with two steps of authentication.
Such checks are mandated for all digital transactions more than €30.
The use of ACI Fraud Management will enable Swedbank identify low-risk transactions and exempt them from two-factor authentication requirements.
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By GlobalDataSwedbank card issuing head Tonu Ots said: “Utilising ACI Fraud Management has allowed us to move from single transaction monitoring to customer behaviour monitoring, a strategy that helps us to quickly identify low-risk transactions and exempt them from SCA’s two-factor authentication requirements.
“This has led to a considerable decrease in card fraud and helped to enhance the customer experience, which is crucial to business growth in light of average high checkout abandonment rates.”
ACI Worldwide senior principal financial crime consultant Jay Floyd said: “Swedbank has demonstrated that it is possible to turn the SCA challenge into an opportunity.
“In addition to delivering an innovative fraud management solution that maintains compliance, manages exemptions and enhances the customer experience, the bank has created a true market differentiator for themselves and their clients by deploying the latest ACI technology.”
According to a statement, the ACI Worldwide- Swedbank partnership led to a 55% drop in card fraud.
In June, Swedbank partnered with fintech firm FNZ to deliver a new savings platform.
