Fraud is evolving at an unprecedented pace, posing significant financial and operational risks to financial institutions. Without a strategic approach, businesses risk falling behind in the fight against increasingly sophisticated fraud tactics.

Fortunately, there’s now a robust way to prevent sophisticated new fraud tactics without expertise in software engineering: the no-code fraud and risk orchestration engine. This approach enables financial institutions to rapidly adapt to emerging fraud tactics while maintaining the rigor and precision required to safeguard operations at scale. Let's explore why building a no-code fraud and risk orchestration engine isn't just smart but essential for survival in the digital financial ecosystem.

The Growing Threat of Online Fraud

In July of 2022, Juniper Research reported that “the cumulative merchant losses to online payment fraud globally between 2023 and 2027 will exceed $343 billion.” 

Online payment fraud is particularly severe in certain regions, with North America accounting for 42% of global ecommerce fraud by value, followed by Europe at 26%. The traditional fraud prevention methods that once worked for financial institutions are failing, necessitating a shift to more adaptive solutions. 

Limitations of Conventional Rules Engines

Traditionally, financial institutions have relied on conventional rules engines to detect and prevent fraudulent activities. A rules engine is a software system that uses predefined rules to analyze data and make decisions automatically based on specific conditions. While these systems have served their purpose in the past, they are increasingly falling short in the face of modern fraud tactics that require detection and response in real-time. The limitations of conventional rules engines include:

• Slow response time: Conventional systems often require weeks or months to respond to new fraudulent patterns. And as response times lag, reputational damage, and financial losses accumulate.

• Lack of flexibility: Traditional rules engines struggle to adapt quickly to evolving fraud tactics, leaving financial institutions vulnerable to emerging threats.

• Limited complexity handling: As fraud schemes become more sophisticated, conventional systems struggle to detect complex patterns involving multiple variables.

• Scalability issues: Maintaining and updating a large number of rules becomes increasingly challenging and resource-intensive as transaction volume ticks up.

• High false positive rates: Rigid rule-based systems often generate many false positives, leading to unnecessary customer friction and operational inefficiencies.

With these limitations, financial institutions are left vulnerable to sophisticated fraud tactics that require more agile and advanced solutions.

The Power of No-Code Risk Orchestration Engines

Faced with increasingly complex fraud tactics, financial institutions are turning to no-code risk orchestration engines to revolutionize their fraud prevention strategies. These engines empower non-technical teams to create, modify, and deploy fraud detection strategies without relying on extensive coding knowledge. They also offer a host of benefits that address the shortcomings of conventional systems.

Key Benefits of No-Code Risk Orchestration Engines

Agility makes these no-code risk orchestration engines so attractive to businesses. Risk teams can swiftly adapt to new fraud patterns, significantly reducing response times and minimizing potential losses. This rapid adaptability is crucial when fraudsters constantly evolve their tactics. No-code platforms empower risk analysts and business users to take direct control of their strategies, leading to more tailored and effective risk management approaches.

No-code orchestration platforms significantly enhance operational efficiency by automating manual fraud detection processes and reducing resource strain. This allows teams to focus on higher-value activities, leading to savings and improved overall operational performance. Moreover, the advanced analytics and machine learning capabilities often incorporated into these platforms dramatically enhance fraud detection accuracy while reducing false positives. 

Integration capabilities are another key advantage. No-code platforms seamlessly connect with existing systems and third-party data sources, enabling a more comprehensive and data-driven approach to fraud prevention. As transaction volumes grow, these platforms easily scale to handle increased loads without requiring significant additional resources or development efforts.

Integrated compliance management and audit capabilities facilitate adherence to regulatory standards, ensuring operational integrity for financial institutions.

Real-World Impact: Success Stories

Financial institutions of all sizes around the world are realizing the benefits of no-code risk decision engines. For instance:

• After implementing a no-code risk decision engine, ING Bank Slaski achieved a fivefold reduction in false positives and cut financial losses related to card fraud by 47%.

• Amplifi Capital, a successful near-prime loan provider in the United Kingdom, implemented a flexible no-code decision engine platform. The no-code approach allowed business analysts to create and adjust decision engine logic without involving IT specialists, significantly reducing the time to market for changes. They doubled their processed quotes to 2 million monthly and saw a 50% reduction in unit costs per processed quote.

• A white paper by Equifax discusses how a large bank integrated its digital channels with a decision engine to generate real-time offers for its customers. This complex deployment involved support for all digital channels, including point-of-sale terminals at branches. The bank’s risk officer utilized custom attribution and modeling in their risk assessment, while the operations team benefited from reporting and UI capabilities to meet compliance requirements. This implementation showcases how decision engines are evolving into comprehensive enterprise platforms capable of handling sophisticated risk assessment strategies across multiple channels.

Choosing the Right Fraud Mitigation Platform

Grid serves as the orchestration layer that enables financial institutions to unify best-in-class fraud mitigation tools within a seamless, no-code environment. Instead of managing disparate vendors and integrations, businesses can streamline risk assessment and fraud prevention strategies through a single platform. This makes it a strong choice for forward-thinking financial leaders. Here are seven distinctive ways Grid excels:

1. Unparalleled flexibility: Grid's platform offers complete customization, allowing institutions to tailor rules and workflows to their unique risk profiles and business needs.

2. Seamless integration: Grid's advanced APIs ensure smooth integration with institutional data and the systems already in use, providing a comprehensive risk view.

3. Cutting-edge AI and machine learning: Grid incorporates state-of-the-art analytics and adaptive learning algorithms, continuously enhancing fraud detection accuracy.

4. Infinite scalability: As your business grows, Grid effortlessly scales to handle increasing transaction volumes without compromising performance.

5. Robust compliance features: Built-in compliance tools and detailed audit trails simplify regulatory reporting and ensure adherence to industry standards.

6. Intuitive user interface: Grid's user-friendly design empowers non-technical users to create and modify fraud-prevention strategies with ease.

7. Exceptional support and training: Grid's dedicated team provides comprehensive support and training, ensuring smooth implementation and ongoing success.

The Future of No-Code Fraud Prevention

Embracing a no-code solution is now a necessity for financial institutions looking to safeguard their assets, preserve customer trust, and drive sustainable growth in an increasingly complex risk environment. According to Gartner, 70% of new applications organizations develop will use low-code or no-code technologies by the end of 2025, up from less than 25% in 2020.

Financial institutions can leverage Grid’s no-code fraud and risk orchestration engine to position themselves at the vanguard of the fight against financial crime. The platform offers financial institutions the agility, efficiency, and accuracy needed to combat fraud attempts in real-time while maintaining a frictionless customer experience. 

See how financial institutions are leveraging Grid’s no-code orchestration platform to optimize fraud prevention. Visit gridverify.com to explore how seamless integration and real-time adaptability can enhance your risk strategy.