Bank Mandiri, Indonesia’s largest financial institution, is using the capabilities of FICO solutions to safeguard all transactions across its retail channels, including booming digital platforms in a continuously evolving fraud landscape.
In 2022, FICO’s fraud solutions safeguarded over 1.64 billion financial transactions valued at US$156 billion on Bank Mandiri’s Livin’ mobile banking app, amidst a staggering 50% year-over-year growth.
As a result, fraud losses on the app decreased by 85% from January to August 2023 compared to the previous year. Across credit and debit cards, fraud losses fell by 77% in 2022.
“Maintaining customer trust and experience through a comprehensive digital transformation strategy is imperative for us,” said Adityo Wicaksono, SVP of retail product delivery and fraud risk group at Bank Mandiri.
“FICO’s solutions help us to stay ahead of fraudulent actors, so we can focus on delivering exceptional digital banking services for our customers,” said Wicaksono.
When Bank Mandiri implemented Falcon Fraud Manager, it also leveraged FICO’s global fraud data consortium, the FICO Falcon Intelligence Network.
The Falcon Intelligence Network is a unique consortium at the core of FICO’s ability to innovate. More than 10,000 financial institutions worldwide provide anonymised, tagged data for monetary and non-monetary transactions, which FICO then uses to train and improve powerful fraud-fighting AI and machine learning-powered models.
“The consortium data allows us to stay ahead of emerging fraud trends,” said Wicaksono.
“After the implementation of fraud models and intelligence derived from the consortium, we were able to achieve immediate, impressive reductions in credit and debit card fraud effectively without having to design new fraud models from scratch,” he added. “We are now ourselves a contributor to the consortium.”
Bank Mandiri’s digital transformation drive in 2023 saw the creation of over 30 new mobile banking features, including Paylater and the New Branch Delivery System (NBDS), enhancing customer experiences with Livin’ by Mandiri.
Partnering with FICO enabled seamless integration of these innovations into its fraud protection solutions, demonstrating FICO’s agility and scalability.
“The rapid integration of existing and new channels along with the hundred newly integrated features demonstrate that FICO’s solution can meet the challenge of simplifying the integration process within Bank Mandiri’s complex system architecture and high volume of transactions,” said Wicaksono.
Bank Mandiri and FICO are currently collaborating on fighting the escalating threat of scams. With the rise of Authorized Push Payment (APP) fraud both globally and in Indonesia, there’s an urgent need for robust fraud prevention measures.
Wicaksono said FICO’s scam detection model, combined with targeted profiling and the retail banking payments model, has proven highly effective.
“This approach has enabled Mandiri to detect a significantly higher number of scam transactions, all while maintaining a sub-1% transaction review rate,” he said.
