How AI and ML is used to Improve Fraud Detection in financial Industry -Overview
- Fraud detection is a magnificent application for Artificial intelligence (AI), having a track record of success in areas such as banking and insurance.
- AI is used to detect fraud has assist businesses in improving internal security and simplifying corporate operations.
- AI can be used to examine vast numbers of transactions or data to uncover fraud trends, which can be used to detect fraud in real-time.
- Artificial Intelligence (AI) improves Fraud detection by integrate supervised learning algorithms with unsupervised learning that’s effect on gaining a better understanding of customers’ behaviours.
- Data is analysed to examine and check for abnormal data points and comprehend variables that may cause anomalies.
- When fraud is Detected, Artificial intelligence (AI) models may be used to reject transactions completely or flag them for further investigation, as well as rate the chance of Fraud, allowing investigators to focus their efforts on the most promising case.
- Artificial Intelligence (AI) has consequently emerged as outstanding tool for avoiding financial crimes due to its increased efficiency.
Benefits of using AI and ML in Financial Industry
- Better customer engagement
- Improves fraud prevention
- Reduced Operational Costs and Risks
- Improve Loan and Facility Evaluation
- Increase Scalability
- Improve Investment Evaluation
How We Used AI and ML in Financial Industry to Detect Fraud?
Solution Overview
- Initially the currently available mechanism, policies and regulations were studied.
- Data is analysed to examine and check for abnormal data points and comprehend variables that may cause anomalies.
- Initially the duration between accident to the date of the report was analysed.
- Driver specific analysis was performed where in the license class, the experience and vehicle restriction and then visualized
- The isolation Forest and SVM (Support Vector Machine) model was constructed to identify claims that stood apart as anomalous
Technology
Market Size: AI and ML in Financial Industry
The global artificial intelligence in fintech market size was valued at US$ 10.1 Billion in 2021, expected to reach US$ 11.76 Billion in 2022, reflecting a Y-o-Y surge of 16.4%. From 2022 to 2032, demand is expected to grow at a compound annual growth rate (CAGR) of 16.5% to reach US$ 54 Billion.
