MIAMI – (COMMERCIAL THREAD) –ACI in the world, one of the world’s leading suppliers of real-time payments and digital payment software solutions, today announced that its partnership with Swedbank, one of the leading issuing and acquiring banks in the Nordic and Baltic regions, has contributed to a 55% decrease in card fraud, helping to improve the customer experience and commercial growth of the Swedish bank.
Swedbank, like many other financial institutions across Europe, had been under pressure to meet Strong Customer Authentication (SCA) compliance mandates. SCA, a new regulatory mandate under PSD2, aims to protect consumers and businesses from fraud by making it more difficult for fraudsters to make payments from their accounts. Under the new regulations, consumers and businesses must verify their identity with at least two stages of authentication. SCA checks are mandatory for any digital payment over € 30 but may be exempt if the merchant has demonstrated low levels of fraud, for example.
The bank has partnered with ACI to improve its fraud platform with the help of ACI fraud management and moved from a rules-based approach to a holistic approach to fraud management – which now applies knowledge of machine learning and shared data in addition to rules – to exempt low-risk transactions from SCA requirements . Using ACI’s model generator functionality enables Swedbank to build and maintain its own predictive machine learning models within minutes. The offer was recently enriched with shared intelligence, allowing the bank to collaborate and create hybrid models of machine learning.
” Use ACI fraud management has enabled us to move from single transaction monitoring to monitoring customer behavior, a strategy that helps us quickly identify low-risk transactions and exempt them from SCA’s two-factor authentication requirements, ”said said Tonu Ots, Head of Card Issuing, Swedbank. “This has led to a dramatic decrease in card fraud and helped improve the customer experience, which is crucial for the growth of the business given the high average checkout rates.
“Swedbank has demonstrated that it is possible to turn the SCA challenge into an opportunity,” said Jay Floyd, Senior Senior Financial Crime Consultant, ACI Worldwide. “In addition to providing an innovative fraud management solution that maintains compliance, manages exemptions and improves the customer experience, the bank has created a true market differentiator for itself and its customers by deploying the latest ACI technology. . ”
In March 2021, Swedbank was awarded for its innovative approach to SCA with the Model Risk Manager Award for the inheritance and transformation of ecosystems by Célent.
To learn more about SCA, please visit ACI fraud management for SCA and exemptions and Multi-Acquiring and Benefits for Traders.
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ACI in the world is a global software company that provides real-time payment solutions to companies. Customers use our proven, scalable and secure solutions to process and manage digital payments, activate omni-commerce payments, present and treat bill payments, and manage fraud and risk. We combine our global footprint with a local presence to drive real-time digital transformation of payments and commerce.
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