FICO, a leading analytics company, announced that it has been named a category leaderin the AI in Financial Services, 2019; Market and Vendor Landscape report from Chartis Research. FICO was named a category leader in both AI analytics and packaged AI applications.
A supplementary report, Vendor Analysis: FICO; Artificial Intelligence in Financial Services, 2019, takes a more detailed look at FICO’s rating and capabilities.
The Vendor Analysis report noted that*: “While the use of AI is now prevalent across many industries and emerging use cases, FIs, in many ways, pioneered the use of AI in commercial applications. FICO was among the first to provide AI tools to FIs, and it has continued to invest in ML R&D focused on helping banks meet ever-more sophisticated customer requirements.”
“A lot of companies talk about AI without delivering — in fact, a recent report by MMC Ventures found that 40 percent of European AI start-ups didn’t actually have any AI,” said Stuart Wells, executive vice president and chief technology officer at FICO. “At FICO, we condense decades of banking experience into cloud-based machine learning applications that use the latest Big Data technologies. This Chartis report validates FICO’s deep experience in AI solutions, which have been helping global banks prevent fraud and strengthen consumer loyalty since 1992. With 100+ patents related to machine learning and AI in our portfolio, we continue to lead the field for AI in financial services.”
Many of the FICO AI innovations evaluated for this research will be packaged into FICO® Falcon® X, a cloud-based financial crimes solution that will allow banks’ in-house data science teams to blend FICO’s intellectual property with open source machine learning libraries. This collaboration will improve banks’ ability to protect consumer accounts, satisfy regulatory requirements, and achieve greater efficiency in their financial crime detection efforts. The Chartis Vendor Analysis report highlights the impact of FICO’s AI developments in two of these areas – real-time payments and anti-money laundering (AML):
“Real-time payments are rapidly gaining traction in the US, spurred partly by dramatic growth in the use of P2P services and mobile payments. FICO’s ML capabilities play a role in protecting these digital interactions, which are especially susceptible to account takeover. FICO’s AI techniques for real-time payments also apply to aspects of recent Payment Services Directive 2 (PSD2) and Open Banking requirements in the UK,” the Vendor Analysis report continued. “FICO has also developed AI techniques in response to regulatory encouragement for innovation and efficiency in AML programs. Recently introduced models monitor transactions to detect anomalies, as well as transaction streams that indicate previous SAR filings by the institution.”
Last year, FICO was named a category leader in the Chartis report on Enterprise Fraud. FICO was also named a category winner in the 2019 Chartis’ RiskTech100 report, where FICO won awards in three categories: Innovation, AI, and Cyber Risk Quantification.