Could Qumram have been the solution? A Swiss brand!
From the US Datanomers with its AI algorithms; it uses a natural-language-processing technology that performs semantic analysis on calls, emails and other customer-care interactions to spot themes in complaints.
or BigID with its customer protection solutions; it monitors customer data and compares newly entered data against data in archives and applications to find anomalies.
Qumram helps the banks like Wells Fargo to detect and prevent fraud right when it happens. How? We record all internal and external digital channels of the bank and therefore see the fraud right when it happens. In case of WF - with the extreme amount of opening new account in order to do illegal transactions - we would have detect if the opening happened on a web or mobile based application.
I know Wells Fargo has Tealeaf a competitive product from us in place. Unfortunately it did not prevent this fraud case
Several AI/ ML solutions could have detected the issue IF cross-selling unnecessary products was identified as an improper practice by the bank. In Well Fargo culture where “products per customer” was touted as a success metric, this was unlikely the case. As RegTech and other stand-alone ML solution providers can attest, while parameters for regulatory compliance can come “pre-loaded” off the shelf, setting other parameters that relate to sales practice is a combination of art + science. And if unnecessary product sales was never fed as ‘improper’ or ‘fraud’ practice in the first place, the ML algo will not consider it an improper practice. So, detecting sales practice fraud is more closely associated with the FI sales culture and sales guidelines.
Good management, “tone at the top”, and aligned incentive structures are the names of the fintechs that could have prevented the Wells Fargo issue.
For many issues plaguing financial services today, the answer has nothing to do with technology. Technology is not a panacea, it is an enabler. It can enable fraud just as easily as it can enable compliance.