How Oracle is using AI to combat financial crime
Oracle is implementing artificial intelligence technology to combat financial crime. The company is leveraging AI to improve fraud detection and prevention efforts. By utilizing advanced algorithms, Oracle aims to enhance security measures and protect against fraudulent activities. This strategic use of AI showcases Oracle's commitment to staying ahead of evolving threats in the financial sector.
Oracle's Fight Against Financial Crime
Oracle is bringing the power of AI to the fight against financial crime, addressing the persistent issue of false positives and high investigation costs plaguing financial institutions. In an interview with Computer Weekly, Sonny Singh, executive vice-president and general manager of Oracle Financial Services, highlighted the challenges faced by traditional rule-based approaches to financial crime detection.
Challenges in Financial Crime Detection
Singh mentioned that these approaches often result in a deluge of alerts, with a staggering "90% of the alerts generated typically false positives." This inefficiency leads to significant resource costs for larger banks, ranging from $600 million to $1 billion for investigations.
Oracle's Solutions
Oracle is addressing this issue through AI by prioritizing alerts for financial crime investigators and automating investigative processes. By leveraging AI models, alerts with higher probabilities of indicating criminal activity can be prioritized, enabling investigators to focus their efforts effectively.
Oracle has recently introduced capabilities in its Investigation Hub service that aim to surface key insights, collect evidence, and generate alert narratives, providing a comprehensive view of entities and transactions under investigation. By utilizing AI to track layered transactions, Oracle helps investigators identify suspicious patterns and networks more easily.
Ensuring Transparency and Governance
Oracle provides model management capabilities that allow financial institutions to demonstrate transparency and fulfill their regulatory responsibilities. Additionally, Oracle employs "compliance agents" to test the thresholds of a bank's financial controls and identify vulnerabilities.
Privacy and Deployment
For customers with stringent data privacy requirements, Oracle's AI capabilities are often deployed in a private cloud environment. Singh noted that while not all workloads are moving to the cloud immediately, larger financial institutions may progress towards public cloud deployments for their AI workloads over time.
Industry Expertise
Besides Oracle, SymphonyAI, a software company specializing in building AI capabilities for specific industries and use cases, has also been active in the fight against financial crime. SymphonyAI's technology platform is used by major financial institutions to investigate and manage money laundering cases.
With a heritage of over 20 years, SymphonyAI's platform offers industry expertise and predictive AI models that enhance its effectiveness in combating financial crime.