Analytics and decision management technology provider FICO , has announced that UniCredit, the Italy-based European banking group, will use an application fraud solution from FICO to help reduce fraud losses on personal loans and improve the customer experience in its Italian banking business. FICO is also validating the performance of the UniCredit Fraud Score, built for detecting residential mortgage application fraud.
As part of its credit application process, UniCredit will score each loan for its likelihood of being fraudulent. Custom fraud models developed by FICO based on UniCredit’s data will be used to analyse personal loans, and models developed by UniCredit and certified by FICO will be used to analyse mortgage loans. FICO will also work with UniCredit to define which criteria to check on each application to detect more fraud, and to regularly fine-tune the models and UniCredit’s fraud rules based on fraud attacks. The solution is aimed at detecting both third-party fraud, where the criminal uses another person’s identify to obtain credit, and first-party fraud, where an individual takes out credit under his or her own name but with no intent to repay.
As reported by UniCredit’s Risk Management department: “Application fraud is a growing focus for criminals who are being thwarted in such areas as credit card fraud,” said Mike Gordon, executive vice president of sales, services and marketing at FICO. “By applying advanced analytics to stopping criminals from opening credit lines with fraudulent intent, UniCredit is taking an aggressive step that should boost the performance of their business and further deter criminal activity. At the same time, UniCredit can approve legitimate credit applications faster, by focusing fraud reviews on only those applications that have the highest chance of being fraudulent.”
Barclays has signed contracts with six of the fintech startups that just graduated from its second New York accelerator programme.
Company card killer Pleo has raised $3m in new funding as it prepares for public launch in the UK and Denmark.
Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.
Payments for digital and physical goods made mobile operating system-based payments platforms like Apple Pay and Android Pay are expected to boom in the next few years according to new analysis from Juniper.