As the banking industry is moving and opening up more and more channels, you will see that the ability is good as more people are getting into the banking system. But at the same time, it opens up more avenues for fraud. So the fraud is coming in all forms. It’s not just from a cybersecurity perspective. It’s getting harder to stop fraud. Whereas when you went to the branch and submitted a document then the earlier person would be able to judge you and do things. It was easier to stop the transaction from happening at that level, whereas now with the online transactions when something is on the move, you cannot stop it. So if the assets get more open and faster, the probability of fraud is also on the rise. This is why you need systems in place as you open more channels, get more and more blocks….to different avenues of fraud.
We call it as a native intelligence or something that is biased or a judgment call, like when you walk into the branch and I knew you were doing something most people would say it’s customary wisdom. The ability to take this wisdom and synthesise that into repeated processes that’s what the systems do. It’s not just the hard data which is the historical data which talks about the repayment history etc about the customer but blending that with elements of softer data that gives you resilience and the ability to predict whether a fraud is coming. So that comes from the ability to use all the big data elements, whether you were using the money for the wrong reasons, were you subjected to frequent management audit, so a lot of soft data that exists in the system, how can you synthesise that and make that repeatable, make that with artificial intelligence built-in and that customary wisdom become a science. When that happens, you will have the ability to look at billions of customers and you will have an ability to spot that repeatedly and it’s on the backbone of the latest disruptive technology, artificial intelligence, predictive analytics and how do you leverage that to get that synthesised.