Fraud Detection AI Solutions For Fintech Company
About Client
A leading fintech company offers digital payment solutions and online banking services. They couldn’t manage the fraud in financial transactions effectively due to a large customer base. Their integrity and reputation were at risk.
Problem Statement
The fintech company was facing challenges in handling the fraudulent financial transactions. They have listed their challenges as follows:
- “The fraud rate has increased leading to higher capital losses and customer distrust in our solutions.”
- “Customers are demanding an immediate resolution to the fraud activities, so we need real-time responses to these activities,”
- “We need manual fraud detection as traditional rule-based systems flag normal customer activities as fraudulent.”
Our Solutions
Aegissofttech stepped In to implement an AI-driven platform that enhances the drug discovery process.
| Objectives | Tech stack used | Action | What we did |
|---|---|---|---|
| Data Integration and preprocessing | Apache NiFi | Data flow automation | Integrated transaction data from multiple sources for analysis. |
| PostgreSQL | Structured data storage | ||
| Anomaly detection | Scikit-learn & TensorFlow | ML Model Implementation | Implemented ML models for anomalous transaction data patterns. |
| Real-time Risk scoring Engine | Apache Kafka | Real-time data processing And model serving | Created the real-time risk-scoring engine to evaluate transactions quickly. |
| NLP for customer feedback | NLTK and spaCy | Text mining | Used NLP to analyze customer feedback and social media sentiment. |
| Dashboard for fraud analysis | Tableau | Data visualization | Developed an interactive stunning real-time dashboard for fraud analysts to monitor alerts trends etc. |
| Flask | Backend API development |
Outcomes
Our clients were very much satisfied with the outcome of the AI solution we offered for fraud detection in a fintech company.
- In six months, fraud losses were reduced to 40%.
- Decrease in the false positive rates by 20%.
- 50% faster response time.
Future Implications
The fintech company is looking forward to refining the fraud detection models further leveraging Deep learning and other AI technologies. And, also planning to include predictive analysis to expand the capabilities of the AI system
Final Say
Leveraging Aegis SoftTech’s AI expertise and AI development experience, the fintech company successfully implemented an AI-based fraud detection system which has increased transaction security and improved customer trust. Now, the company effectively manages the fraud. The pain points were all addressed successfully helping the company stay ahead of the competition.
