RANCHO CUCAMONGA, Calif.– CO-OP Financial Services has introduced COOPER, which it is describing as an advanced data-driven platform designed to "detect and fight fraud faster than ever before, bringing more visibility to member activity and needs." The solution will be rolled out in phases this year.
The new solution debuted during CO-OP’s THINK 18 Conference here, with CEO Todd Clark calling COOPER the largest single investment the company is making in 2018. “I’ve said many credit unions are too conservative. We want to give them the tools to open themselves up,” said Clark.
According to CO-OP, COOPER is the company’s largest technology initiative, in which the company is investing approximately $8 million to provide state-of-the-art machine learning and artificial intelligence to its client credit unions across the CO-OP ecosystem. During THINK, CO-OP said COOPER can in less than three milliseconds process thousands of transactions and apply that information to potential fraud schemes.
“COOPER is a major piece in our strategy to bring greater security throughout our products and services, while providing the most seamless experience to credit union members,” said Clark. “COOPER will allow us to constantly improve upon the fight against fraud by enabling the understanding of huge amounts of data and detecting complex patterns rapidly.”
Inside of CO-OP, it said the new solution is being positioned behind the scenes as the data-driven “brain,” and that COOPER will be used by the company exclusively on behalf of its client credit unions.
How Data Will Be Used
“Data will be harnessed to incorporate machine learning and eventually AI to better mitigate fraud and enable greater member engagement,” according to CO-OP.
Clark said that beginning in June it will roll out COOPER Fraud Analyzer, an account-based risk management solution for CO-OP Shared Branch clients that will provide added protection to identify and prevent potentially fraudulent transactions.
CO-OP added it will subsequently launch COOPER Fraud Score, using machine learning to create a risk-scoring model that determines the level of suspicion for a transaction. The company said the capability will be available on account-based products later this year, and for card-based products in 2019, so that the power of machine learning will run across the entire CO-OP ecosystem, further integrating the user experience for clients and members.
'Predicting Patterns'
“Understanding members and predicting patterns also enables more targeted communications and offers,” said Clark. “COOPER is being introduced as an enhancement to our fraud mitigation solutions, but it will be additionally leveraged later for greater member engagement and more precise targeting to anticipate member needs.”
According to CO-OP, machine learning can reduce manual review of queues, easily adapt to new business lines, reduce false positives and increase precision.
“CO-OP’S advanced fraud products, including COOPER, card controls and credit line risk tools, are designed to adhere to customized fraud tolerance levels by individual clients,” the company said.
For info: www.co-opfs.org/cooper