BROOKFIELD, Wis.– Fiserv is reporting its financial institutions clients have been able to reduce fraud losses, improve internal processes and enhance the consumer experience with the implementation of two new capabilities.
According to the company, the addition of real-time risk scoring and an automated high limits service to the widely used TransferNow solution from Fiserv has enabled financial institutions to significantly reduce fraud loss dollars and fraud loss rates while delivering a more personalized user experience.
“Deployment of these TransferNow in-session risk controls led to a 61% reduction in fraud loss dollars and a 65% reduction in fraud loss rates for financial institutions using the service, compared to a similar time period prior to deployment,” Fiserv said.
Facilitates Transfers
TransferNow, which facilitates account-to-account transfers within and between financial institutions, is used by nearly 1,000 banks and credit unions, including seven of the top 10 U.S financial institutions, the company added.
"With the rise of real-time money movement, financial institutions and technology providers have had to change their strategies to secure transactions while delivering the speed and convenience consumers expect," said Kannan Srinivasan, VP-risk strategy and analytics at Fiserv. "Real-time insights and automation are key components in this balancing act, allowing for a high degree of security and efficiency without compromising the customer experience."
In-Session Risk Mitigation
According to Fiserv, the TransferNow real-time risk scoring engine leverages machine learning to allow transactions to be scored while the user is in the session initiating the transaction. Geolocation, account validation, transaction velocity, and user and account tenure are among the hundreds of factors that are assessed in the risk evaluation process, Fiserv said.
“Potentially fraudulent transactions can be cancelled automatically or put on hold for review, according to the risk tolerance of the financial institution,” Fiserv stated. “After reviewing a transaction, an investigator can release the transaction, cancel the transaction, or suspend the account. TransferNow supports holding transactions in-session to prevent a debit from occurring while a potentially fraudulent transaction is under investigation, which minimizes returns or chargebacks.”
High Limits Service
Fiserv said the dynamic high limits service allows financial institutions to offer higher transaction limits for populations of lower-risk users, based on prior transactions and risk performance. The company added that if the service is initiated, these lower-risk users can transfer high-dollar amounts while creating minimal exposure for the financial institution.
Fiserv further noted that by using the embedded administrative tool, banks and credit unions can set qualification requirements to determine eligibility for the high limits service, building trust with established customers while mitigating potential fraud.
Significant Growth
Fiserv reported that TransferNow experienced significant growth between 2021 and 2022, with a 10% increase in active users and 17% increase in funds moved.
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