Rules are widely used in Fintech institutions to make fraud prevention decisions, since rules are highly interpretable thanks to their intuitive if-then structure. In practice, a two-stage framework of fraud prevention decision rule set mining is usually employed in large Fintech institutions. This paper is concerned with finding high-quality rule subsets in a bi-objective space (such as precision and recall) from an initial pool of rules. To this end, we adopt the concept of Pareto optimality and aim to find a set of non-dominated rule subsets, which constitutes a Pareto front. We propose a heuristic-based framework called PORS and we identify that the core of PORS is the problem of solution selection on the front (SSF). We provide a systematic categorization of the SSF problem and a thorough empirical evaluation of various SSF methods on both public and proprietary datasets. We also introduce a novel variant of sequential covering algorithm called SpectralRules to encourage the diversity of the initial rule set and we empirically find that SpectralRules further improves the quality of the found Pareto front. On two real application scenarios within Alipay, we demonstrate the advantages of our proposed methodology compared to existing work.

AI and machine learning have changed financial services lately and are ready to completely alter the universe of payment soon. With the capacity to rapidly analyze huge amounts of data, organizations are using AI to create efficient and recognizable designs that can improve decision-making. According to a report by Forbes, "Artificial intelligence will save the banking industry more than $1 trillion by 2030". The use of AI is redefining the number of things that are done inside the financial industry. Many financial activities are done through powerful applications, latest technologies are opening up many opportunities for individuals.

One can argue that even the most innovative banking institutions are bureaucratic enough, and their slow decision-making causing banks to lose their premium over fintech applications, peer to peer lending marketplaces, and payment processors. At the same time, many expanded into the business of micro-lending. Banking services are no longer a monopoly of banks, and traditional financial institutions have to innovate in order to survive. The era of non-traditional financial services providers such as Amazon Payments, PayPal Payments and PayU, has risen. The launch of the Payment Services Directive II in Europe unlocks new dynamics for FinTech and Payment Services.