Webinars
The unintended customer friction caused by check fraud
Watch our discussion with industry experts Gary Brand and Nick Ledford as they discuss the unintended customer friction caused by check fraud.
In this insightful discussion, we cover:
> Steady rise in check fraud since 2022> Friction caused by policies and procedures put in place to combat check fraud
> How accelerating funds availability improves outcomes
Latest emerging trends in Fintech
Excited to share a video interview with Industry Expert and Advisor, Kevin Moss and Donna Cichani, SVP of Product at VALID Systems as they dive into the latest emerging trends in Fintech!
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- The rise of AI and its impact on financial services
- Innovations in open banking and payments
- Strategies for staying ahead in a rapidly evolving industry
Partnerships and B2B products in banking
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- Real-world success stories from consortium members
- How shared data is revolutionizing fraud detection
- Stay ahead of evolving fraud tactics
State of deposit fraud management
Exciting insights on the evolution of fraud prevention and enhancing customer experience over the past 30 years from Kathleen Waid, Advisor at VALID Systems, and Gauray Jain, SVP Credit & Product Innovation.
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- Shift from collaborative efforts among financial institutions to a more isolated approach.
- Importance of data sharing within a consortium to effectively combat fraud, as bad actors often target multiple banks.
- Challenge of balancing security measures with customer experience, emphasizing that while increased security can create friction, it is essential for preventing fraud
Overdraft and Small Dollar Loans
Did you know...? 96% of households are banked in the US, but 40% to 60% of them overdrafted or have less than $1,000 in their accounts.
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Data study: AI bias on payment monitoring
For small businesses or families who live paycheck to paycheck, the immediacy of access to funds is important because they're cash flow dependent.
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- Model Performance Monitoring: The model’s pass rate is nearly identical across all income levels and minority groups, indicating no discrimination.
- Model Risk Management: The model’s developers bear the risk of fraudulent items passing through the system.
- Model Deployment: The model is already live at seven of the top 20 financial institutions.
Prevent AI bias
AI bias is a phenomenon that occurs when an algorithm inadvertently produces results or decisions that are unjust or unfair to a group of citizens or to consumers.
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- Bias in AI: Bias can infiltrate AI algorithms even without sensitive data like gender, race, or income level.
- Inclusive Data Collection: Ensures fairness in AI models.
- Training Data Importance: Crucial for ensuring fairness in AI models.
AI bias regulations
Ensuring training data is free from bias is important. It should be inclusive and have representation.
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- Team Diversity Importance: Diverse teams are crucial for identifying and addressing biases in algorithm design and implementation.
- Ethical Frameworks Role: Ethical frameworks and regulatory measures are essential for establishing guidelines and standards to mitigate bias.
AI bias study
Hear firsthand study results from LaShonna Sharp, Chief Risk Officer at VALID Systems.
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Kevin Moss Q&A - Part 1: How has the overdraft industry evolved over the past 20 years?
Kevin Moss, an industry veteran with extensive experience in fraud, credit, and banking, discusses the evolution of overdraft fees.
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- Overdraft Fees Evolution: Historically, these fees served as a deterrent against overdrafts. Banks started charging overdraft fees with the rise of electronic transactions, which increased over time.
- Regulatory Pressure: Recent regulatory changes and competition from neobanks have pressured traditional banks to handle overdraft fees more responsibly.
- Bank Initiatives: Banks have started implementing thresholds and alert processes to manage overdrafts better.
Kevin Moss Q&A - Part 2: How will the industry and regulatory landscape evolve in the future?
Kevin, an industry expert with extensive experience in fraud, credit, and banking, discusses how neobanks like Varo and Chime offer small dollar lines of credit and credit cards with no interest or fees, providing alternatives to traditional overdraft fees.
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- Small Dollar Lending Importance: Helps consumers avoid expensive payday loans and manage overdrafts effectively.
- Overdraft Management Improvement: Machine learning and AI can build models to better assess overdraft likelihood.
- VALID Systems Expertise: Provides expertise in machine learning and data sources for overdraft risk management.
Analyzing the Status Quo of Overdraft Fees on Consumer Behavior
Imagine Cynthia, a college student, purchased a $6 coffee at Starbucks but overdrafted. Do you know she may end up paying on an avg $26 in additional overdraft fees per transaction?
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- Overdraft Fee Collection: Financial institutions collected over $7 billion in overdraft fees in 2022.
- Overdraft Prevalence: Approximately 20-25% of American households experience overdrafts.
- Low Account Balances: Around 40% of checking accounts have low balances under $1,000.