Canada’s second-largest credit union is now using a sophisticated enterprise management system as a high-tech tool in its fight against an old-school problem–theft.
The $12.9 billion Coast Capital Savings in British Columbia has got about a year under its belt now using the Proactive Risk Manager solution from ACI Worldwide Inc. and so far, so good, the big CU says.
"We’re very proactive ourselves and to us, this was a business play rather than strictly a technology move," said Ian Thomas, Coast Capital’s vice president of operational risk. "It allows us to see the full picture of what’s happening across multiple channels, what’s occurring how and when, and what changes we need to make to protect the enterprise."
Coast Capital uses the PRM system to, among other things, implement changing, targeted analytical models that work in real time to make decisions on suspected transactions and prevent them from taking place if they’re deemed fraudulent. That can include attacks from phishers, skimmers, writers of bad checks and more.
ACI’s PRM takes what in the industry is called an enterprise risk management approach, the idea that risk must be managed across the organization to effectively detect and prevent fraud. Internal controls of both human and technology processes are involved and technology tools are used to view transactions and other activities across all business lines, accounts and processes. The newest solutions are being touted for breaking down the walls between silos of data, enabling actionable, enterprisewide views.
"ACI has specific analytical models that target specific threats," said Jasbir Anand, senior solutions consultant for ACI Worldwide. "By deploying advanced analytics in the authorization process, PRM can identify anomalous transactions before the funds are accessed."
For customization, the predictive analytic models are combined with user-defined rules to allow the financial institution to make their own calls on the risk associated with each product and service, Anand said.
Thomas at ACI said that the PRM solution is used along with a range of other security solutions to help ensure the credit union and its 425,000 members are safe from hackers and other electronic fraud threats.
"We use the PRM product to monitor transactions across all our channels–online, ATM, POS, and the biggest benefit so far has been reduction in fraud losses," Thomas said. "We’ve been able to identify fraudulent transactions more quickly and our response to them has been enhanced."
In addition to reacting to individual threats, the system "allows us to bring all the data into one place where we can better understand trends and experiences," information used as part of the credit union’s enterprise-wide approach to fraud prevention, Thomas said.
"At Coast Capital, we obviously take protecting our members and our institutions very seriously and we deploy a variety of programs and solutions to protect us against fraud of all kinds," Thomas said. "That includes technology solutions, of course, but there’s also a member education component, a staff education component and appropriate policies and procedures. It all has to work together to be effective and we strive for that."
A complex system, there was a learning curve in the months following the PRM deployment, he added, "but you’ll have that anytime. Now we’re seeing sizable savings and benefits from this, both on the risk side and as a return on our investment."
Coast Capital Savings operates 50 branches in and around Vancouver, the Fraser Valley and Vancouver Islands region.
ACI Worldwide’s Americas headquarters is in Elkhorn, Neb., and the company said it provides more than 800 customers with payment processing, risk management, back-office automation and application infrastructure services.