FICO opens AI portfolio

New forms of fraud and financial crime can now be tackled after FICO unveils a groundbreaking AI solution - FICO Falcon  (www.fico.com/en/products/falcon-x).

Architected for the cloud, and available on Amazon Web Services, FICO Falcon X delivers the radical flexibility needed to counter real-time payment fraud schemes.

“The worldwide rollout of real-time payments has given rise to criminal threats that thrive on the fact that these payments are often irrevocable,” explains Jason Keegan, who oversees the fraud line of business for FICO (
www.fico.com).  “Criminals have exploited the rigid infrastructure that underpins our global financial system. This has allowed them to not only commit theft, but also finance drug trafficking, human smuggling, and terrorist activity. With Falcon X, we set out to help institutions detect and prevent criminal activity before the real-time transfer occurs.”

“Global regulators are encouraging financial institutions to evaluate new methods of detecting financial crimes,” says TJ Horan, FICO’s vice president of fraud and compliance products. “We’re bringing to bear the orchestration of purpose-built machine learning models, contextual data, and expert workflows, giving fraud and compliance teams unprecedented flexibility. We blended the latest analytic technologies with FICO’s payments and machine learning domain expertise to help banks strengthen their defenses, level the playing field, and quickly operationalise capabilities that not only satisfy regulatory requirements, but also detect the earliest indications of criminal intent.”

“Financial institutions and fintechs around the globe are heavily investing in machine-learning analytics to help balance risk mitigation with the customer experience,” added Julie Conroy, research director at Aite Group. “The ability to democratise the development and deployment of advanced modeling capabilities is a top priority for many firms so they can keep pace with the rapid evolution of fraud and money-laundering attacks. Falcon X provides the key tools to address these needs and empower banks and fintechs to respond rapidly to evolving crime patterns.”

As part of the FICO® Falcon® X solution, FICO is also introducing the FICO® Financial Crimes Studio with InstantML, which shortens the time to develop and deploy real-time financial crime models through purpose-built and domain-specific FICO machine learning algorithms. The FICO Financial Crimes Studio also allows data scientists to build models based on their banks’ unique customer portfolio using open source machine learning libraries such as R, Python, and H2O. Explainable AI tools in the Financial Crimes Studio aid model governance by providing visibility into model behaviors.