Despite the numerous existing safeguards, banks are more exposed to fraud than ever, partly due to the growing number of channels customers use to access services, such as online banking and mobile applications. According to Antonio García Rouco, CEO of GDS Modellica, “regulation, compliance, and overall risk management pose a significant operational burden for financial services. Fraud in the onboarding process, such as opening a credit or bank account with fraudulent or forged information, is an increasingly significant problem. Banks lose billions each year due to fraudsters using stolen personal information to create new accounts and commit fraudulent acts.”

For years, GDS MODELLICA has developed technologies and solutions that help financial institutions, Fintech companies, insurers, or utility service providers like electricity or water companies, prevent and combat fraud with a comprehensive approach. It provides security that these institutions extend to their customers, who are often the ones exposed to these frauds. Regulatory bodies and companies must ensure the proper functioning of payment systems.

The implementation of new tools and technology, as García Rouco states, “has made it possible to face one of the most significant challenges: detecting fraud and identifying illicit activity among millions of daily transactions.” Preventing and mitigating the effects of financial crimes and scams is crucial not only for financial institutions to continue their operations as usual, avoid fines, and maintain a good reputation among their customers. Artificial Intelligence is revolutionizing and transforming all economic sectors, including finance and fraud prevention. In addition to prevention, AI streamlines overall financial operational processes by expediting decision-making and accurately prioritizing and investigating each transaction. Its incorporation has positive effects on financial institutions by improving the customer experience and reinforcing relationships with personalized actions.