New research from Provenir outlines the greatest risk analysis challenges, opportunities, and trends fintech decision-makers expect to see within this year
Over 90% of European Fintechs will adopt AI-enabled risk decisioning to combat fraud. Source: pexels.com
According to the latest study from Provenir, fraud prevention is the biggest driver for investments in AI-enabled risk decisioning this year.
The survey canvassed the views of 100 decision-makers from fintechs and financial services firms across Europe. It found that other major drivers for investments in AI-enabled risk decisioning include automating decisions across the credit lifecycle (68%), competitive pricing (65%) and cost savings and operational efficiency (61%).
It also highlights the role that alternative data can play in the fight against fraud, with 68% of those surveyed choosing to incorporate alternative data for the purpose of improving fraud detection.
Besides, the report found that access to data is the biggest challenge to an organisation’s risk strategy (88%), closely followed by a lack of a centralised view of data across the customer lifecycle (74%).
Overall, the findings show that current confidence in credit model accuracy is low, with only 22% of respondents believing that their organization’s current risk model is accurate at least most of the time. No respondents believed that their organisation’s risk model is completely accurate.
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