Bank Mandiri Achieves Remarkable Fraud Reduction with FICO

Bank Mandiri Achieves Remarkable Fraud Reduction with FICO

In a significant milestone, Bank Mandiri has successfully integrated FICO solutions to combat financial fraud, achieving an impressive reduction in fraudulent activities across its platforms. Utilizing the advanced capabilities of FICO (NYSE: FICO), the bank has seen a notable decrease in losses, with card payment fraud down by 80% and a dramatic 85% reduction in fraud linked to its digital application.

Strategic Implementation of FICO Solutions

Bank Mandiri has implemented the FICO® Falcon® Fraud Manager and the FICO® Falcon® Intelligence Network, enabling the bank to detect and prevent fraudulent activities effectively. This comprehensive suite of solutions has proven essential in safeguarding transactions on various retail channels, particularly as digital banking continues to rise.

Outstanding Fraud Management Results

Thanks to the integration of FICO’s solutions, Bank Mandiri processed over 1.64 billion financial transactions valued at approximately US$156 billion via its Livin’ mobile banking service in 2022. This remarkable performance led to an 85% decrease in fraud losses from January to August 2023 compared to the same period in the previous year. Moreover, fraud losses related to credit and debit cards declined by 77% in 2022.

Advancements in Digital Banking

The post-pandemic landscape in Indonesia has fostered an era of rapid digital transformation within the banking sector. According to Adityo Wicaksono, Senior Vice President of Retail Product Delivery & Fraud Risk Group at Bank Mandiri, customer trust and satisfaction are paramount. By partnering with FICO, the bank can effectively tackle the challenges posed by fraud while enhancing its digital banking services.

Innovative Features and Services

In 2023, Bank Mandiri introduced over 30 new features in its mobile banking platform, including services like Paylater and the New Branch Delivery System (NBDS). These innovations have improved user experience, showcasing FICO’s ability to support seamless integration of novel offerings to bolster fraud protection.

Collaborative Efforts Against Scams

A significant collaboration between Bank Mandiri and FICO focuses on combating the rising threat of scams, particularly the surge in Authorized Push Payment (APP) fraud. The solutions developed by FICO have empowered Bank Mandiri to achieve substantial gains in scam transaction detection while keeping the transaction review rate below 1%.

Recognition for Excellence in Fraud Management

Bank Mandiri was recently honored with the 2024 FICO® Decisions Award for Fraud Management. The award recognizes the bank's commitment to a data-driven strategy, leveraging advanced analytics to enhance fraud detection while driving digital growth. Paul Mah, a judge on the panel, praised the bank for its innovative approach and dedication to fraud management.

Leading the Charge in Digital Transformation

Nikhil Behl, EVP of Software at FICO, celebrated Bank Mandiri's commitment to overcoming fraud challenges amidst rapid digital innovation. The successful implementation of FICO solutions ensures that Bank Mandiri remains at the forefront of the digital banking landscape, focusing on providing exceptional service for its customers.

Frequently Asked Questions

What is the role of FICO solutions in Bank Mandiri?

FICO solutions help Bank Mandiri effectively manage and reduce fraud across its banking channels, achieving substantial decreases in fraudulent transactions.

How much did fraud losses decrease for Bank Mandiri?

Fraud losses on credit and debit cards decreased by 77% in 2022, with an impressive 85% reduction noted in the Livin’ mobile banking app.

What new features were introduced by Bank Mandiri in 2023?

Bank Mandiri rolled out over 30 new banking features in 2023, including Paylater and an upgraded delivery system to enhance user experiences.

What recognition did Bank Mandiri receive for its fraud management?

Bank Mandiri received the prestigious 2024 FICO® Decisions Award for its excellence in Fraud Management, recognizing its innovative data-driven approach.

How does Bank Mandiri maintain customer trust amid increasing fraud?

Through strategic partnerships with FICO and continued investments in fraud detection technology, Bank Mandiri aims to maintain customer trust and enhance service quality.

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