Solving the Billion Dollar Banking Problem: Over 95% of Transaction Alerts Are False Positives. It’s Time for a Rethink.
Harinder Sudan, SVP of BlackSwan’s Financial Intelligence Unit features in The Stack today talking about the billion-dollar banking problem; over 95% of transaction alerts are false positives.
This increases operational costs while exposing financial institutions to penalties and reputational risks.
While many firms have adopted transaction monitoring systems that apply rules-based conditions to identify suspicious behaviours, high false-positive rates prevail. It’s time for a rethink, and regulators agree, as they’re increasingly encouraging the use of AI and ML to address this issue more effectively.