Danske Bank and Teradata Implement AI Engine that Monitors Fraud in Real Time

Teradata has announced today that Danske Bank, a financial services leader in the Nordics, has worked with Think Big Analytics, a Teradata company, to create and launch a state-of-art, AI-driven fraud detection platform that is already expected to meet 100 percent ROI in its first year of production. The engine uses machine leaning to analyze tens of thousands of latent features, scoring millions of online banking transactions in real-time to provide actionable insight regarding true, and false, fraudulent activity. By significantly reducing the cost of investigating false-positives, Danske Bank increases its overall efficiency and is now poised for substantial savings. "Application fraud is a critical, top of the agenda issue for banks, and there is evidence that criminals are becoming savvier by the day; employing sophisticated machine learning techniques to attack, so it's critical to use advanced techniques, such as machine learning to catch them," said Nadeem Gulzar, Head of Advanced Analytics, Danske Bank. "The bank understands that fraud is set to get worse in the near and long-term future due to the increased digitization of banking and the prevalence of mobile banking applications. We recognize the need to use cutting-edge techniques to engage fraudsters not where they are today, but where they will be tomorrow. Using AI, we've already reduced false positives by 50 percent and as such have been able to reallocate half the fraud detection unit to higher value responsibilities."