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Experian AI:drian turns bouncers into revenue generators
Baden-Baden, April 19, 2022: The information service provider Experian launches the new fraud prevention solution AI:drian in the DACH region. The solution can accurately evaluate up to 99.9 percent of all transactions and thus reliably filter out fraud. In this way, it drastically reduces the number of transactions incorrectly identified as fraudulent ("false positive rate") and can thus increase sales by up to 15%. At the heart of the new solution is the machine learning component "Transaction Miner". Experian AI:drian is developed in Germany and available in the entire DACH region immediately.
Fraud prevention has traditionally been a balancing act between fending off actual fraudsters and accepting good customers. Previous fraud prevention systems have acted as bouncers, with a bias to rather reject one good customer too many rather than allowing fraudsters to pass through. All companies that do business online have to contend with a correspondingly high false positive rate, especially as digital fraud becomes increasingly complex. The loss of revenue due to false positives can be painful. According to payment consultancy CMSPI, in 2020, revenue losses from targeted card fraud in Europe were around €2 billion, while losses from false positives were around €23 billion. So, by significantly reducing false positives, AI:drian transforms the role of fraud prevention from bouncer to revenue generator.
The example of a pilot customer from the e-commerce industry illustrates how significant the paradigm shift is: AI:drian was able to reduce the false positive rate by 60 percent. 99.9 percent of the transactions that the machine learning tool identified as legitimate based on its training were not fraudulent and were accordingly not rejected. Instead of around 7,000 order requests per month, only 300 needed to be manually reviewed - a workload reduction of more than 95 percent!
"It is rare to be able to announce a real paradigm shift and the start of a new era, as we have managed to do with AI:drian," comments Martina Neumayr, Senior Vice President Credit Risk & Fraud Services at Experian in DACH. "I am extremely proud of the entire team that developed AI:drian and confident that the new solution will be a great success for us and our clients in the DACH market and beyond."
Experian AI:drian can be profitably applied not only in e-commerce, but also in other industries. For example, reducing operational costs is high on the list of priorities in the telecommunications industry. Particularly when demand is high, for example when a new, sought-after smartphone is launched on the market, the internal effort for fraud prevention is enormous, and fraud agents are heavily burdened with checking contracts or installment payments for new devices. Because the machine learning model evaluates contract requests intelligently, reliably and accurately, 99.4 percent of transactions accepted by the model will not end up at the final dunning level or collections.
AI:drian is also redefining fraud prevention in the payments industry. All too often, the successful completion of an online purchase fails because of a strict, conservative set of rules that wrongly rejects customers. This results in losses for both sides: the online merchant, who cannot sell his goods, and the payment provider, who loses the corresponding revenue with every unsuccessful transaction. AI:drian accurately evaluates transactions. Internal resources are saved, as AI:drian automatically categorizes each case: accept, reject or review. The success rate is up to 99.9 percent, significantly reducing the need for manual review.
• A central cloud platform: All information and data are brought together in one system, into which additional information and new data points can be fed at any time. Furthermore, third-party systems can be easily fed with the results of the processed data through a push mechanism.
• Modular structure: By combining the components Case Management, Rule Engine, Device Intelligence and Transaction Miner, the solution can be tailored precisely to the needs of the customer.
• Modern interfaces: Communication with the AI:drian system takes place in near real-time via REST interfaces.
• Highest data security: hosting for the bare metal cloud platform takes place in Germany.
• Internationally expandable: thanks to horizontally scalable database technology, an arbitrarily large transaction volume is possible in just one instance.
• Fast implementation: Experian implements AI:drian in less than four weeks, even in existing systems.
• Programming languages: GO, React, Python, NodeJS
About Experian DACH
Experian is the global market leader for information and IT services. Experian helps its clients use data with confidence. Experian helps individuals take control of their financial affairs and access financial services. For businesses, Experian helps them make smart, growth-enhancing decisions. Borrowers are guided by the company to manage credit responsibly. Organizations are given the tools they need to protect themselves against identity fraud and crime. In 2020, the company acquired a majority stake in Arvato Financial Solutions' Risk Management business, reestablishing Experian DACH as the region's leading risk, fraud and identity management service provider.
Experian DACH offers companies of all sizes and industries, such as e-commerce operators, insurance companies, financial service providers and telecommunications companies, the best basis in each case for their risk, fraud and identity management. If required, Experian DACH develops customized, company-specific solutions, especially for large customers. Experian employs around 20,000 people in 44 countries worldwide. The company continuously invests in technology, innovation and people to deliver the best possible output to customers. Experian is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 Index.
Further information can be found at www.experian.de, www.experian.at, www.experian.ch.
Young-In Sun (Senior PR & Communications Manager, Experian DACH)
+ 49 211 5066 5126
www.experian.de / www.experian.at / www.experian.ch
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