Bank Mandiri Cuts Fraud Significantly with FICO Solutions
Bank Mandiri has marked a major achievement by integrating FICO solutions, which effectively counter financial fraud. As a result, the bank has experienced a striking 80% reduction in card payment fraud and an 85% drop in fraud connected to its digital application.
Effective Use of FICO Solutions
The bank has deployed the FICO® Falcon® Fraud Manager alongside the FICO® Falcon® Intelligence Network. This suite of tools allows Bank Mandiri to detect and prevent fraudulent activities efficiently. Given the growth of digital banking, these solutions are crucial for protecting transactions across various retail channels.
Impressive Results in Fraud Management
Due to FICO’s integration, Bank Mandiri completed over 1.64 billion financial transactions worth around US$156 billion through its Livin’ mobile banking platform in 2022. This outstanding performance resulted in an 85% reduction in fraud losses from January to August 2023 compared to the same timeframe last year. Additionally, the losses linked to credit and debit card fraud fell by 77% in 2022.
Progress in Digital Banking
The changes in Indonesia following the pandemic have ushered in a period of rapid digital transformation in banking. Adityo Wicaksono, Senior Vice President of Retail Product Delivery & Fraud Risk Group at Bank Mandiri, emphasizes the importance of customer trust and satisfaction. Partnering with FICO allows the bank to effectively address fraud challenges while enhancing its digital offerings.
New Features and Services
In 2023, Bank Mandiri launched more than 30 new features on its mobile banking platform, such as Paylater and the New Branch Delivery System (NBDS). These enhancements have greatly improved user experience, highlighting FICO’s capability to support the seamless introduction of new services designed to strengthen fraud protection.
Joint Efforts Against Scams
Bank Mandiri and FICO have teamed up to tackle the growing problem of scams, particularly the rise in Authorized Push Payment (APP) fraud. The innovative solutions from FICO have enabled the bank to significantly improve its detection of scam transactions and maintain a transaction review rate below 1%.
Acknowledgment for Excellence in Fraud Management
Recently, Bank Mandiri received the 2024 FICO® Decisions Award for Fraud Management. This award highlights the bank's dedication to a data-driven approach, leveraging advanced analytics for better fraud detection while also encouraging digital growth. Paul Mah, a judge on the selection panel, commended the bank for its inventive strategies and commitment to managing fraud effectively.
Pioneering Digital Transformation
Nikhil Behl, EVP of Software at FICO, praised Bank Mandiri for its resolve in tackling fraud challenges amid swift digital changes. The successful adoption of FICO solutions keeps Bank Mandiri at the forefront of the digital banking sector, dedicated to delivering exceptional service to its customers.
Frequently Asked Questions
What is the role of FICO solutions in Bank Mandiri?
FICO solutions enable Bank Mandiri to manage and significantly lower fraud across its banking services, achieving impressive reductions in fraudulent transactions.
How much did fraud losses decrease for Bank Mandiri?
In 2022, fraud losses tied to credit and debit cards dropped by 77%, with an exceptional 85% reduction recorded in the Livin’ mobile banking app.
What new features were introduced by Bank Mandiri in 2023?
In 2023, Bank Mandiri introduced over 30 new features in its banking app, including Paylater and an upgraded delivery system, enhancing the overall user experience.
What recognition did Bank Mandiri receive for its fraud management?
Bank Mandiri was awarded the prestigious 2024 FICO® Decisions Award for its excellence in fraud management, acknowledging its innovative and data-driven strategy.
How does Bank Mandiri maintain customer trust amid increasing fraud?
Bank Mandiri strives to maintain customer trust by partnering with FICO and making ongoing investments in technology for fraud detection, thus enhancing service quality.
