103 AI tools, powered by Microsoft, are helping banks to protect against the growing risk of financial crime an era where cyberthreats are increasingly sophisticated, AI-driven security solutions, such as behavioural analytics and automated incident response, provide financial institutions with the agility and intelligence needed to safeguard their systems. Leveraging AI is not just an advantage – it is essential for regulatory compliance and resilience.” “AI technologies, including machine learning, predictive analytics and now generative AI enables banks to analyse vast amounts of data, identifying patterns and anomalies that may indicate fraudulent activities or money laundering schemes,” says Tyler Pichach, head of banking and payments strategy at Microsoft. “For instance, AI can detect unusual transaction patterns, flagging them for further investigation, which helps in early detection and prevention of financial crimes. Moreover, AI-driven systems can continuously learn and adapt to new fraud tactics, making them more effective over time. This dynamic capability allows banks to stay ahead of increasingly sophisticated fraudsters.” Deloitte’s FSI Predictions 2024 report references J.P. Morgan for example, as having incorporated large language models for email compromises and Mastercard’s Decision Intelligence tool to predict if a transaction is genuine. “While AI can manage large volumes of data and identify potential threats with high accuracy, human expertise is essential for interpreting complex cases and making nuanced decisions,” says Pichach. “Banks can achieve this balance by implementing a hybrid approach where predictive AI systems handle routine and high-volume tasks, such as initial screening and flagging of suspicious activities. “ AI enhances fraud detection by analysing vast amounts of transaction data to spot suspicious patterns” CHRIS KNOX, MICROSOFT FINANCIAL SERVICES Image: iStock/Jajah-sireenut
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