Swedbank, ACI Worldwide alliance aids 55% drop in card fraud

A partnership between Swedish bank Swedbank and payments solutions provider ACI Worldwide has contributed to a 55% drop in card fraud.

Founded in 1975, Nebraska-headquartered ACI Worldwide is a global software company that provides mission-critical real-time payment solutions to corporations.

ACI Customers use its technology to manage digital payments, present and process bill payments, enable omni-commerce payments and manage fraud and risk. The firm also has an office in Mumbai.

According to ACI, Swedbank partnered with ACI to enhance its fraud platform through the latter’s Fraud Management platform. Furthermore, ACI has transitioned from a rules-based to a holistic fraud management approach – a move which now applies insights from machine learning and shared data in addition to rules – to exempt low-risk transactions from strong customer authentication (SCA).

ACI also mentioned that through utilizing ACI’s model generator functionality, the bank is able to create and maintain their own predictive machine learning models within minutes.

Swedbank head of card issuing Tonu Ots said, “Utilizing ACI Fraud Management has allowed us to move from single transaction monitoring to customer behaviour monitoring, a strategy that helps us to quickly identify low-risk transactions and exempt them from SCA’s two-factor authentication requirements.

This has led to a considerable decrease in card fraud and helped to enhance the customer experience, which is crucial to business growth in light of average high checkout abandonment rates.”

ACI Worldwide senior principal financial crime consultant Jay Floyd added, “Swedbank has demonstrated that it is possible to turn the SCA challenge into an opportunity.

“In addition to delivering an innovative fraud management solution that maintains compliance, manages exemptions and enhances the customer experience, the bank has created a true market differentiator for themselves and their clients by deploying the latest ACI technology.”

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