Analytics company FICO has been named a category leader in the “ AI in Financial Services, 2019: Market and Vendor Landscape” report from Chartis Research. It was named a leader in packaged AI applications and AI analytics.
“While the use of AI is now prevalent across many industries and emerging use cases, FIs, in many ways, pioneered the use of AI in commercial applications. FICO was among the first to provide AI tools to FIs, and it has continued to invest in ML R&D focused on helping banks meet ever-more sophisticated customer requirements,” said the Vendor Analysis: FICO; Artificial Intelligence in Financial Services, 2019 report.
The services the report evaluated are available in FICO Falcon X. Falcon X is a cloud-based financial crimes solution that allows the in-house data science teams of banking institutions combine their open source machine learning libraries with FICOs intellectual property for better risk management, compliance, governance and threat detection. The Chartis Vendor Analysis report emphasized FICOS AI technology in two specific threat and risk areas, real-time payments and anti-money laundering.
“Real-time payments are rapidly gaining traction in the US, spurred partly by dramatic growth in the use of P2P services and mobile payments. FICO’s ML capabilities play a role in protecting these digital interactions, which are especially susceptible to account takeover. FICO’s AI techniques for real-time payments also apply to aspects of recent Payment Services Directive 2 (PSD2) and Open Banking requirements in the UK,” the Vendor Analysis report continued. “FICO has also developed AI techniques in response to regulatory encouragement for innovation and efficiency in AML programs. Recently introduced models monitor transactions to detect anomalies, as well as transaction streams that indicate previous SAR filings by the institution.”