Mitigate Fraud and Manage Risk

Institutions need updated strategies to grow, reach more customers, and improve customer experience (CX). However, with growth comes increased risks. Automation can help identify, measure, and manage these risks.

Technology helps financial institutions spot and reduce risks in an Omni-channel environment throughout the customer journey. Consumers want not just the ease of access to products and services but also the security of knowing they are doing their financial business safely. Effective risk management focuses on four key areas of risk, with the added benefit of protecting your reputation.

Knowing the identity of your consumer and business customers in an Omni-channel world requires best practices aligned to the delivery channel. Customer- and account-level due diligence enables risk mitigation and ensures compliance. Detect and prevent fraud with a system that combines what you know with third-party and government data to validate, verify, and authenticate your customers.

Less than 5% of your customers will tell you they are unhappy before they take their business elsewhere. Proactively detect and analyze more than 55 events and trends impacting your customers. Employ automation to quantify the likelihood that a customer will leave the bank. If the risk exceeds acceptable limits, initiate timely and relevant customer engagement to protect your relationships and your business.

In today’s market, to sustain cash flow, lenders must deliver competitively priced loan products in a timely, consistent, and compliant manner across channels in real time. Applicant credit worthiness is generally lower in the digital channel than through the branch. As many as 90 percent of digital credit requests are high risk. The system automates validations, categorizations, disclosures, debit and credit analysis, adherence to business policies, and decisioning. This improves CX and frees your staff to focus their time on qualified applicants with near-term relationship and revenue potential.

Operational outages can cause risk and dissatisfied customers. ARGO’s Early Detection Monitoring Service (EDMS) reduces the time to diagnose and resolve operational issues. Based on our proactive detection, we are the first to identify and respond to production issues. ARGO responds 75 percent of the time before the FI is aware of an issue. ARGO actively monitors roughly 7 billion network transactions each year. In the last twelve months, ARGO customers experienced 99.993 percent operational reliability, and we predictively identified 77 percent of issues that would have resulted in outages, preventing over 65,500 hours of desktop outages. This high level of operational performance enhances reputation and reduces operational risk.

The solution detects potentially fraudulent transactions and suspicious items through multi-fund, cross-channel analytical and adjudication workflow. It analyzes transactions and alerts bankers of suspicious debit and credit activity, such as check numbers and amounts that fall outside of usual ranges or duplicate check numbers. The solution applies tests at both the account and entity levels, looking at account velocity, number of transactions, and unusual deposit and withdrawal amounts. Transaction types include ACH, ATM, cash, check, debit card, deposit, and wire transfer. A centralized review process improves case management for items needing further research. It increases fraud detection from an industry average of 80% to over 95%. It also reduces the suspect-to-fraud ratio of 250:1 to below 30:1 with an alert rate below 0.5%.

FIs need a solution that complies with applicable laws, rules, regulations, and guidance. ARGO designed our solutions to help strengthen our customers’ compliance and avoid regulatory violations. Ongoing monitoring of changes ensures we provide relevant and timely updates to our solutions. ARGO’s commitment includes the following:

We have all seen the headlines. Any failures in managing the four categories of risk may impact the FI’s reputation. Using technology to reduce risk helps FIs take action before and after problems occur, protecting both the institution and its customers. For instance, customers expect services to be available online, reliable, and secure 24/7. By preventing system outages, the FI can keep customers satisfied and reduce the chances of losing them. Addressing fraud also helps maintain the FI’s reputation as a safe place to do business.