New report looks at the multiple tools FIs use across fraud, compliance, and credit risk

Today, risk management is largely decentralized. Fraud, compliance, and credit risk management nearly always reside in three different departments. Financial institutions (FIs) have between five and 10 vendor solutions across these three functions, with the IT architecture team reviewing proposed purchases to prevent, or at least highlight, potentially duplicative investments.

In The Intersection of Fraud, Compliance, and Credit Risk: A Global Perspective—a new Impact Report sponsored by Experian—research and advisory firm Aite-Novarica Group looks at how FIs manage fraud, compliance, and credit risk areas, concentrating on organizational structures, tools, data, and the use of ML models.

“ML models improve fraud detection compared to static rules,” said David Mattei, Strategic Advisor at Aite-Novarica Group. “But building and maintaining ML models is a never-ending process. Financial services firms should consider deploying unsupervised ML models—not for making risk decisions but to detect new fraud trends faster for rebuilding supervised ML models.”

A preview of the report is available online, and desk copies are available to qualified media. Please contact [email protected] or call Kaitlyn Labbe at +1.857.327.9442 for more information.

About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.

Kaitlyn Labbe
Aite-Novarica Group
+1.857.327.9442
[email protected]