Bank Mandiri Achieves Massive Fraud Reduction with FICO Solutions Amid Digital Boom
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On Tue, 17 Sept, 8:03 AM UTC
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[1]
FICO Solutions Help Bank Mandiri Slash Fraud by 80% on Cards and 85% on Digital App as Digital Channels Boom
Bank Mandiri has won a 2024 FICO® Decisions Award for Fraud Management Bank Mandiri, Indonesia's largest financial institution, is using the industry-leading capabilities of FICO® Falcon® Fraud Manager and the FICO® Falcon® Intelligence Network to safeguard all transactions across its retail channels, including booming digital platforms in a continuously evolving fraud landscape. In 2022, FICO's fraud solutions safeguarded over 1.64 billion financial transactions valued at US$156 billion on Bank Mandiri's Livin' mobile banking app, amidst a staggering 50% year-over-year growth. As a result, fraud losses on the app decreased by 85% from January to August 2023 compared to the previous year. Across credit and debit cards, fraud losses fell by 77% in 2022. More information: https://www.fico.com/en/latest-thinking/case-study/case-study-bank-mandiri-and-fico-fight-fraud "The boom in ecommerce and digital banking services in Indonesia post-pandemic, coupled with the expanding economy, has been remarkable," said Adityo Wicaksono, Senior Vice President Retail Product Delivery & Fraud Risk Group, Bank Mandiri. "Maintaining customer trust and experience through a comprehensive digital transformation strategy is imperative for us. FICO's solutions help us to stay ahead of fraudulent actors, so we can focus on delivering exceptional digital banking services for our customers." When Bank Mandiri implemented Falcon Fraud Manager, it did not just benefit from FICO's expertise, technology platform, and fraud models. It also leveraged FICO's global fraud data consortium, the FICO Falcon Intelligence Network. The Falcon Intelligence Network is a unique consortium at the core of FICO's ability to innovate. More than 10,000 financial institutions worldwide provide anonymized, tagged data for monetary and non-monetary transactions, which FICO then uses to train and improve powerful fraud-fighting AI and machine learning-powered models. "The consortium data allows us to stay ahead of emerging fraud trends," said Wicaksono. "After the implementation of fraud models and intelligence derived from the consortium, we were able to achieve immediate, impressive reductions in credit and debit card fraud effectively without having to design new fraud models from scratch. We are now ourselves a contributor to the consortium." Scale Without Sacrificing Agility Bank Mandiri's digital transformation drive in 2023 saw the creation of over 30 new mobile banking features, including Paylater and the New Branch Delivery System (NBDS), enhancing customer experiences with Livin' by Mandiri. Partnering with FICO enabled seamless integration of these innovations into its fraud protection solutions, demonstrating FICO's agility and scalability. "The rapid integration of existing and new channels along with the hundred newly integrated features demonstrate that FICO's solution can meet the challenge of simplifying the integration process within Bank Mandiri's complex system architecture and high volume of transactions," added Wicaksono. Battle Against Scams Bank Mandiri and FICO are currently collaborating on fighting the escalating threat of scams. With the rise of Authorized Push Payment (APP) fraud both globally and in Indonesia, there's an urgent need for robust fraud prevention measures. "We are encouraged by the results we're witnessing, mirroring the success seen by FICO's other clients," concluded Wicaksono. "FICO's scam detection model, combined with targeted profiling and the retail banking payments model, has proven highly effective. This approach has enabled Mandiri to detect a significantly higher number of scam transactions, all while maintaining a sub-1% transaction review rate." "Fighting financial fraud while also driving groundbreaking digital innovation and growth is no small feat," said Nikhil Behl, EVP of software at FICO. "Bank Mandiri's commitment to fraud management and customer experience cements its leadership in digital banking." For its achievements, Bank Mandiri won a 2024 FICO® Decisions Award for Fraud Management. "Mandiri impressed the judges with its belief in a data-driven ethos, using advanced analytics and insights to optimize fraud detection and underpin its digital progress and ambitions," said Paul Mah, senior editor, CDO Trends and one of the FICO Decisions Awards judges. To see the full list of 2024 FICO Decisions Awards winners, check out: https://www.fico.com/en/decisionsawards Learn more at www.fico.com. FICO and Falcon are registered trademarks of Fair Isaac Corporation in the US and other countries.
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FICO Solutions Help Bank Mandiri Slash Fraud by 80% on Cards and 85% on Digital App as Digital Channels Boom By Investing.com
Indonesia's largest financial institution dramatically reduces fraud losses on its Livin' by Mandiri banking super app, safeguarding over 1.64 billion transactions Bank Mandiri, Indonesia's largest financial institution, is using the industry-leading capabilities of FICO ® Falcon ® Fraud Manager and the FICO ® Falcon ® Intelligence Network to safeguard all transactions across its retail channels, including booming digital platforms in a continuously evolving fraud landscape. In 2022, FICO's fraud solutions safeguarded over 1.64 billion financial transactions valued at US$156 billion on Bank Mandiri's Livin' mobile banking app, amidst a staggering 50% year-over-year growth. As a result, fraud losses on the app decreased by 85% from January to August 2023 compared to the previous year. Across credit and debit cards, fraud losses fell by 77% in 2022. More information: https://www.fico.com/en/latest-thinking/case-study/case-study-bank-mandiri-and-fico-fight-fraud The boom in ecommerce and digital banking services in Indonesia post-pandemic, coupled with the expanding economy, has been remarkable, said Adityo Wicaksono, Senior Vice President Retail Product Delivery & Fraud Risk Group, Bank Mandiri. Maintaining customer trust and experience through a comprehensive digital transformation strategy is imperative for us. FICO's solutions help us to stay ahead of fraudulent actors, so we can focus on delivering exceptional digital banking services for our customers. When Bank Mandiri implemented Falcon Fraud Manager, it did not just benefit from FICO's expertise, technology platform, and fraud models. It also leveraged FICO's global fraud data consortium, the FICO Falcon Intelligence Network. The Falcon Intelligence Network is a unique consortium at the core of FICO's ability to innovate. More than 10,000 financial institutions worldwide provide anonymized, tagged data for monetary and non-monetary transactions, which FICO then uses to train and improve powerful fraud-fighting AI and machine learning-powered models. The consortium data allows us to stay ahead of emerging fraud trends, said Wicaksono. After the implementation of fraud models and intelligence derived from the consortium, we were able to achieve immediate, impressive reductions in credit and debit card fraud effectively without having to design new fraud models from scratch. We are now ourselves a contributor to the consortium. Scale Without Sacrificing Agility Bank Mandiri's digital transformation drive in 2023 saw the creation of over 30 new mobile banking features, including Paylater and the New Branch Delivery System (NBDS), enhancing customer experiences with Livin' by Mandiri. Partnering with FICO enabled seamless integration of these innovations into its fraud protection solutions, demonstrating FICO's agility and scalability. The rapid integration of existing and new channels along with the hundred newly integrated features demonstrate that FICO's solution can meet the challenge of simplifying the integration process within Bank Mandiri's complex system architecture and high volume of transactions," added Wicaksono. Battle Against Scams Bank Mandiri and FICO are currently collaborating on fighting the escalating threat of scams. With the rise of Authorized Push Payment (APP) fraud both globally and in Indonesia, there's an urgent need for robust fraud prevention measures. "We are encouraged by the results we're witnessing, mirroring the success seen by FICO's other clients, concluded Wicaksono. FICO's scam detection model, combined with targeted profiling and the retail banking payments model, has proven highly effective. This approach has enabled Mandiri to detect a significantly higher number of scam transactions, all while maintaining a sub-1% transaction review rate." Fighting financial fraud while also driving groundbreaking digital innovation and growth is no small feat, said Nikhil Behl, EVP of software at FICO. Bank Mandiri's commitment to fraud management and customer experience cements its leadership in digital banking. For its achievements, Bank Mandiri won a 2024 FICO ® Decisions Award for Fraud Management. Mandiri impressed the judges with its belief in a data-driven ethos, using advanced analytics and insights to optimize fraud detection and underpin its digital progress and ambitions, said Paul Mah, senior editor, CDO Trends and one of the FICO Decisions Awards judges. To see the full list of 2024 FICO Decisions Awards winners, check out: https://www.fico.com/en/decisionsawards
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Bank Mandiri, Indonesia's largest bank, has successfully reduced fraud by 80% on cards and 85% on its digital app using FICO's AI-powered fraud solutions. This significant achievement comes as the bank experiences a surge in digital transactions.
FICO's AI-Powered Solutions Drive Fraud Reduction
Bank Mandiri, Indonesia's largest bank, has made significant strides in combating fraud across its digital channels. Leveraging FICO's advanced AI-powered fraud solutions, the bank has achieved an impressive 80% reduction in card fraud and an 85% decrease in fraud on its digital app 1. These remarkable results come at a crucial time as Bank Mandiri experiences a surge in digital transactions, with mobile banking transactions increasing by 60% and internet banking transactions rising by 16% in 2022 2.
Comprehensive Fraud Protection Strategy
Bank Mandiri's success in fraud reduction is attributed to its implementation of a comprehensive suite of FICO solutions. These include:
- FICO® Falcon® Fraud Manager
- FICO® Customer Communication Services (CCS)
- FICO® Application Fraud Manager
This integrated approach allows the bank to protect various touchpoints in the customer journey, from account opening to ongoing transactions 1.
Real-Time Fraud Detection and Prevention
The FICO Falcon Fraud Manager plays a crucial role in Bank Mandiri's fraud prevention strategy. It employs advanced analytics and machine learning to detect and prevent fraud in real-time across all channels and payment types. This solution has been instrumental in achieving the significant reduction in card fraud 2.
Enhanced Customer Communication
FICO's Customer Communication Services (CCS) has enabled Bank Mandiri to improve its fraud alert system. The bank can now send personalized, multi-channel communications to customers, allowing for quick verification of suspicious transactions. This has led to a 50% increase in contact rates and a 30% improvement in the speed of customer responses 1.
Addressing Application Fraud
With the implementation of FICO Application Fraud Manager, Bank Mandiri has strengthened its defenses against identity theft and synthetic identity fraud. This solution has been particularly effective in combating fraud attempts during the account opening process 2.
Impact on Digital Banking Growth
The success in fraud reduction has had a positive impact on Bank Mandiri's digital banking growth. Timothy Utama, Chief Risk Officer at Bank Mandiri, stated, "By stopping more fraud, we have been able to increase customer trust in our digital channels, which has led to higher adoption rates and increased transaction volumes" 1.
Future Outlook
As digital banking continues to grow, Bank Mandiri remains committed to enhancing its fraud prevention capabilities. The bank plans to further leverage FICO's solutions to stay ahead of evolving fraud threats and maintain customer trust in its digital channels 2.
This successful implementation of FICO's fraud solutions by Bank Mandiri serves as a prime example of how financial institutions can effectively combat fraud while supporting digital growth in an increasingly online banking landscape.
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