Enabling Secure Transactions: A Comprehensive Fraud Detection System for Banking and Financial Services Integration

About the Company

Our client is a visionary New York-based public benefit corporation committed to revolutionizing the world of business and customer account-opening experiences. At the forefront of innovation, they are not just another player in the field but a trailblazing force. Through strategic partnerships with industry thought leaders, and technology vendors, and collaboration with both the private and public sectors, our client is on a mission to tackle the complex challenges of onboarding.

Business Goals

Our client's business goals are firmly rooted in their commitment to fostering inclusion and simplifying the process of opening accounts for businesses and customers alike. Their primary objective is to reshape the landscape of account onboarding experiences, making them accessible, efficient, and secure. By leveraging their unique collaborative approach, they aim to create a transformative "Stripe for Onboarding" service that streamlines the intricate procedures involved in customer acceptance. In addition, they aspire to make a global impact by introducing the Open Trust Protocol, a pioneering initiative designed to facilitate instant consumer acceptance on a worldwide scale.

Challenges

The Key Challenges Faced by the client were:

• Enhancing Fraud Detection Model: One of their foremost challenges was the need to develop a robust fraud detection model that can significantly enhance the accuracy and effectiveness of their decision-making process.
• Optimizing API Performance: They were also grappling with slow API response times, which hindered the efficiency of their systems. They seek a team capable of addressing this issue through advanced login system improvements and code optimization, thus ensuring faster and more responsive APIs.
• Introducing New SDKs: As part of their project expansion, the client aimed to introduce new SDKs. However, building these SDKs, especially those related to machine learning for fraud detection, presents a challenge due to the limited availability of high-quality training data.

In essence, the client's challenges revolve around improving their system's performance, reliability, and accuracy while introducing new features and technologies.

Solutions

Hexaview provided the client with a comprehensive Fraud Detection Solution, consisting of the following key components:

• Data Pre-processing and Feature Generation: Hexaview analyzed the client's vendor data and developed a tailored approach to pre-process the data effectively. This included creating new features to facilitate the construction of advanced fraud detection models.
• Custom Model Development: Hexaview designed and built new, specialized fraud detection models for specific cases such as Third-Party Fraud, Synthetic Fraud, and First Party Fraud. These models were meticulously trained and tested using custom data studies to ensure accuracy.
• Integration and Deployment: Hexaview seamlessly integrated the newly developed models into the client's existing systems, enhancing their decision-making processes. This integration included the deployment of the models to improve overall acceptance rates and reduce fraud rates.
• SDK Development and Documentation: In addition to fraud detection enhancements, Hexaview developed iOS and Android mobile app SDKs along with sample applications. These SDKs were accompanied by comprehensive documentation, providing clear instructions on how to integrate and utilize them within mobile apps. Regular updates and enhancements to the SDKs were also part of the solution, ensuring continued effectiveness and usability for the client and their customers.

Impact

The impact of the solution on the client can be summarized in three significant outcomes:

• Enhanced Performance: The newly created model outperformed the client's previous system, resulting in higher Acceptance Rates while effectively minimizing Fraud Rates. This boost in performance directly contributed to increased customer profits and a substantial reduction in losses.
• Onboarding Efficiency: The introduction of new SDKs streamlined the client's customer onboarding process. This not only improved the overall efficiency of their operations but also facilitated the seamless integration of new customers, enhancing the client's ability to expand their user base.
• Financial Benefits: By achieving better fraud detection and customer onboarding efficiency, the client realized substantial financial benefits. They experienced increased profitability due to higher acceptance rates and, simultaneously, reduced financial losses attributed to fraud. This financial impact positioned the client in sustained growth and success in their industry.

Key Results

The key results of the built solution include a remarkable 25% increase in application acceptance rates and a notable 7% reduction in the fraud rate, underscoring its significant impact on the client's operations.