Swift is rolling out an AI-powered anomaly detection service to help banks proactively detect and defend against potential financial crime. The new service follows a successful pilot with financial institutions across Europe, North America, Asia and the Middle East, and is part of a broader portfolio of Swift-facilitated AI innovation.
Swift today announced that it is rolling out new AI-enhanced fraud detection to help the global payments industry step up its defence as bad actors grow increasingly sophisticated. „Available from January 2025, the service is the result of extensive collaboration with banks from around the world and a successful pilot earlier this year.” – according to the press release.
The new capability builds on Swift’s existing Payment Controls Service — used by many small and medium-sized financial institutions — by drawing on pseudonymised data from the billions of transactions that flow over the Swift network each year to identify and flag suspicious transactions so that action can be taken in real-time.
The rollout is part of Swift’s broader collaboration with its global community of more than 11,500 banks and financial institutions to test how AI can solve cross-industry challenges. With global industry estimates putting the total cost of fraud in financial services at USD 485 billion in 2023 alone1, Swift is focused on using AI to give financial institutions stronger and more accurate insights into instances of potentially fraudulent activity.
Jerome Piens, Chief Product Officer at Swift, said: “Bad actors are using increasingly sophisticated tactics to commit financial crime, and the global financial industry needs to raise its defences higher to ensure their customers can continue to transact globally with confidence. Swift has a long track record of supporting our community by staying one step ahead to maintain the security and resilience that our network is known for – and now we’re doing so again by harnessing the latest technology.”
Since February, Swift has been working with leading global financial institutions to explore how federated learning, combined with privacy-enhancing technologies, could enable market participants to share information without revealing their proprietary data. The group has so far developed a number of fraud detection use cases which are set to be tested in a sandbox environment.
„The rollout of this enhanced service is a key milestone in Swift’s strategic vision to make end to end international transactions instant and frictionless, while maintaining trust, security and compliance.” – the company said.
„Collaboration across the banking sector is crucial to enhancing fraud detection, and by sharing data and leveraging AI, we empower ourselves to stay ahead. At BNP Paribas, we are fully committed to supporting Swift’s innovative initiative in that regard, as it marks a key step forward in protecting the integrity of our financial ecosystem.” – said Olivier Nautet, Head of Cybersecurity, BNP Paribas; Nicolas Trimbour, Head of Fraud Prevention, Cash Management, BNP Paribas, and Su Yang, Head of Artificial Intelligence, Transaction Banking, BNP Paribas
“Standard Bank Group, Africa’s biggest bank by assets, has participated in Swift’s initiative for AI fraud detection capability to enhance the security of its customers’ transactions. The technology will identify suspicious patterns in real-time, reducing fraud-risk and ensuring a safer banking experience for clients. By leveraging the power of AI, Standard Bank Group reaffirms its commitment to innovation and safeguarding the financial assets of its clients – who are our main asset.” – said John McHugh, Head Operations Control – CIB at Standard Bank.
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[1] Nasdaq 2024 Global Financial Crime Report
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
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