Helping business harness the power of Artificial Intelligence (AI) to solve today’s growing business challenges

Artificial Intelligence

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LANDSCAPE

Challenges in today’s landscape are creating the need for Artificial Intelligence (AI)

21. CISCO. GROWTH OF THE INTERNET OF THINGS. 2017. 2. IBM. 10 KEY MARKETING TRENDS FOR 2017. 2016. 3. MASTERCARD RESEARCH. 2018.

Businesses need AI to provide them with smarter, faster and easier ways of leveraging, understanding and monetizing data—resulting in better decisioning, positive consumer experiences and improved revenue.

Number of connected devices will be 50 billion in less than five years150B

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90% Of the data that exists today was created in the past two years—making the process of discerning meaningful data even more difficult2

100X Increase in data flows in the next 5-7 years—connected devices are not necessarily enabling connected data3

EXPLOSION OF CONNECTED DEVICES

EXPONENTIAL GROWTH OF DATA SETS

ISOLATED DATA REPOSITORIES

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Why AI is the right solution—what’s the buzz about?

SOLUTION

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AI provides organizations with the ability to…

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Make accurate future predictions —via continually learning each experience

Efficiently process large amounts of data—recognizing patterns

Become an “expert system” at speeds far faster than humanly possible

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Solving real world challenges…

SOLUTION

ANTI MONEY LAUNDERING (AML)Helps prevent, detect and report money laundering, terrorist financing and other illicit activities.

ACQUIRER FRAUDHelps reduce risks associated with merchant on boarding as well as ongoing risk at a merchant and transaction level—while increasing approval rates

OMNI CHANNEL FRAUD

Monitors various transaction types across channels to detect increases in fraud risk—while managing and approving more legitimate transactions

AI EXPRESSDevelop a proof-of-concept AI model that solves specified business challenges; such as:.

• Early Delinquency Predicts early credit delinquency and default while also optimizing the approach to collections

• Credit Risk ManagementHelps create the optimal initial credit line and product assignment as well as to maximize ongoing the credit line and terms based on a customer lifetime value calculation

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Context and Challenge

A major global acquirer had an existing rules-based system that was difficult to manage and maintain, did not detect enough money laundry cases, and generated too many false positives.

Approach

Within 6 weeks of using Brighterion’s AI-based AML and Acquirer Fraud solutions, the acquirer significantly reduced the number of manual reviews and associated staffing costs—as well as increased detection and available data inputs and insights:

• Reduced the number of business rules from 50,000 to <50

• Reduced the number of daily alerts from 8,500 to about 250

• Increased fraud detection by 3.2x

• Increased data feeds from leveraging 2 to dozens

Driving efficiency—without taking on more risk Results

97%

3.2X

Reduction In Daily Alerts

Increase In Fraud Detection

PROVEN RESULTS

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We offer unique advantages and experience

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WHY BRIGHTERION

Unrivaled Performance

Revolutionary Technology

Universal Insights

Unmatched Efficiency

Advantages

Cross Channel Fraud Protection

Payments

AML Compliance

Default Prediction

Experience

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To get started let’s…

Discuss current challenges facing your organization that might benefit from artificial intelligence

Determine potential stakeholders to include in the process to maximize performance potential

Map-out how AI could can be part of your overall strategy

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Instalment Payment Services

Appendix

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CHALLENGE

SOLUTION

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SOLUTION – ANTI MONEY LAUNDERING (AML)

Helping to improve AML

compliance and efficiency

Leveraging the power of AI, Brighterion can help you:

• Prevent, detect and report money laundering, terrorist financing and other illicit activities

• Manage risk in an integrated manner across products, business lines and geographies

• Address regulatory obligations and expectations

• Mitigate legal, financial, compliance and reputational risk

Legacy systems are not able to keep pace with rapidly growing and complex nature of money laundering activity and regulation—especially for systems that include heavy rules management and manual review processes.

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SOLUTION

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SOLUTION - EARLY DELINQUENCY AND COLLECTIONS

Leveraging a proactive approach

to predicting delinquency

Brighterion can help you use AI to create a proactive “2 Step” approach:

Step 1: Predict before someone goes delinquent, based on • Transaction and payment history• Current activity• Demographics

Step 2: Use AI to optimize the early treatment strategy• Reduce line• Offer alternative payment, re-payment methods/plans• Incentive primary payment

Traditional approach to collections is reactive in nature—waiting until delinquency has occurred, which is often too late. But, what if you could predict someone before they default or even missed their first payment—including knowing what actions/treatment to take?

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CHALLENGE

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SOLUTION

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SOLUTION – ACQUIRER FRAUD

Reducing merchant risk through

a multi-level approach

Leveraging the power of AI, Brighterion can help: Merchant Onboard Risk

• Assess new merchants to reduce onboarding risk

• Continuously monitor merchant behavior and risk levels for credit worthiness, bankruptcy, fraudulent activity, and network compliance

• Manage daily transaction fraud risk

Acquirers are vulnerable to risk from merchants in many different ways—including fraud, credit risk, and other financial crime such as AML liability.

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CHALLENGE

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SOLUTION

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SOLUTION – CREDIT RISK MANAGEMENT

Driving profitability by applying

AI across the credit risk lifecycle

With the ability to integrate into Application Processing System (LOS) and Customer/Account Management Systems, Brighterion can help you throughout each stage: d

• New Account Origination (e.g., custom credit risk models, ability to repay, etc.)

• Initial Product Assignment (e.g., card type, credit line, and APR)

• Ongoing Customer Management (e.g., credit line increases, balance transfer offers, etc.)

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Managing the customer lifetime value is the most essential task of a product manager yet often the most difficult to get right. How do you manage customers individually based on customer lifetime value? And, how do you calculate customer lifetime value and initiate the right actions and offers—at the right time?

CHALLENGE

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SOLUTION

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SOLUTION – OMNI CHANNEL FRAUD

Addressing risk across

multiple fraud vectors

Leveraging the power of AI, Brighterion can help address omni-channel fraud via a platform that supports multiple fraud vectors across:

• Channels

• Payment types

• Transactions

Fraud is not only becoming more sophisticated but, diverse too—with an evolution from managing a single channel, monetary event, payment method/type, and non-monetary activity to managing fraud from multiple vectors (e.g., wire, ach, check, etc.).

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CHALLENGE

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SOLUTION – AI EXPRESS

Quickly develop an AI model that solves your

specific business challenge

AI Express

Objectives Time Frame Post-Engagement

• Develop a minimally viable product with a working AI model that addresses customer business challenge agreed upon by you and Mastercard.

• Gain hands-on experience and understanding of leading AI tools.

• 5-8 weeks of data collection, collaboration and AI model development

• 3-day onsite engagement with Mastercard AI experts

• Based on engagement results, you can choose to undergo a full-fledged deployment of the AI model developed.

Uses Mastercard AI technology and modeling process to develop a proof-of-concept AI model that solves your specified business challenge.