Artificial intelligence (AI) plays a very important role in Risk Management fraud detection in the banking and finance industry, especially as several big banks each year, lose billions of dollars to due to compliance and risk management problems.
Machine Learning: This method improves the accuracy of risk models by identifying complex, nonlinear patterns in large data sets. Every bit of new information is used to increase the predictive power of the model.
In the world of banking, with the increasing pressure in managing risk along with growing governance and regulatory requirements – it is mandatory for banks to enhance their risk management towards better compliance and in reducing huge losses.
Several Leading Risk Management Consulting companies like – Deloitte, CapGemini, IBM, Marsh Risk, PWC, McKinsey, Crowe, KPMG, EY, etc., are working with Big Banks to find ways to provide process improvements and enforce standards and policies to develop highly customized solutions for managing the risks and compliances.
Big banks can now leverage the combined power of Traditional validated proven methods of Risk management along with EagleAI’s Advanced Artificial Intelligence and Machine Learning Risk management based predictive big-data analytics – customized to their environment as their second line of defense.
AI Fraud Detection for Market – Data Risk: Artificial Intelligence / Machine Learning is being used as a solution to detect deviations from sector or market trends, catch abnormal intra-day movements, abnormal options activity before it occurs. This not only serves to protect banks from costly errors but also proactively alerts risk and compliance managers for abnormal or sudden stock price/volume movements to avoid large trading losses.
AI Fraud Detection for Trade Fraud Risk: AI can help combat and defeat frauds and manipulative trades by detecting illicit activity early in the process. Machine learning Algorithms can detect Spoofing and Layering, Front running, suspicious trader behavior, quote stuffing, wash trades, marking the close etc. to stop financial damage before it occurs.
AI Fraud Detection for compliance risks: AI monitors Compliance with various global regulatory requirements for banks, detects risks & anomalies and prevents losses due to non-compliances. Algorithms can pull from a variety of data points, from transaction origination to the end destination and more, to identify deviations from normal patterns. This not only serves to protect banks costly errors and proactively alerts risk and compliance managers to avoid costly fines and penalties.
The earlier the big banks and financial institutions adopt AI/ML advanced solutions for Risk Management the quicker they can mitigate and save billions of dollars. EagleAI’s advanced AI/ML Risk Management does just that – and is designed to detect, and Predict and discover actionable Risks and compliance insights.
Find out how EagleAI can bring AI to the banking industry through early detection and actionable results by scheduling a free demo.