Swift has
announced the launch of two artificial intelligence (AI) pilots in
collaboration with major international banks to enhance fraud detection in
cross-border payments. The initiative aims to leverage AI technology to save
the industry billions in fraud-related costs and improve the efficiency of the
cross-border payments ecosystem.
The first
pilot will focus on enhancing Swift’s existing Payment Controls service, which
helps financial institutions identify potential fraud by detecting anomalies in
payment patterns. By integrating an AI model, Swift aims to create a more precise
system for identifying fraudulent activity based on historical data from the
Swift network. The pilot will involve Payment Controls customers refining the
AI-enhanced service using their live traffic data to ensure real-world
applicability.
In a
separate action, Swift has brought together ten leading financial institutions,
including BNY Mellon, Deutsche Bank, DNB, HSBC, Intesa Sanpaolo, and Standard
Bank, to explore the use of advanced AI technology for analyzing
anonymously-shared data from various sources.
Swift and Global Banks Launch AI Pilots to Tackle Cross-Border Payments Fraud https://t.co/PkEygrzOIQ pic.twitter.com/IuaJLKnPfd
— Latest News from Business Wire (@NewsFromBW) May 30, 2024
The goal is
to strengthen the global financial ecosystem by enabling secure data
collaboration and federated learning technologies. This approach will allow
financial institutions to exchange relevant information while maintaining
strong privacy controls, enabling Swift’s AI anomaly detection model to
identify potential fraud patterns from a more comprehensive dataset.
“AI has
great potential to significantly reduce fraud in the financial industry,” Tom
Zschach, Chief Innovation Officer at Swift, said. “That’s an incredibly
exciting prospect, but one that will require strong collaboration.”
Fraud cost
the financial industry an estimated $485 billion in 2023 alone, and AI is seen
as a powerful tool in reducing these costs.
“Combatting fraud successfully will require
industry collaboration, collective action, and strong leadership from operators
like Swift,” Isabel Schmidt, Executive Platform Owner, Payments Enablement at
BNY Mellon Treasury Services, said. “We’re excited to help lead the first wave
of innovation in this space and look forward to seeing even more banks join the
initiative.”
AI is proving to be a double-edged
sword in financial markets. On one hand, it assists regulators and companies in
combating fraud. On the other hand, it enables fraudsters to devise
increasingly sophisticated schemes, including deepfakes that impersonate
well-known personalities to entice investments.
Swift’s Latest Developments
Swift, a cooperative that operates a widely used financial
messaging service, recently introduced white-labeled tracking services for
cross-border payments to its member banks. The Belgium-based organization has
also standardized its entire payment chain with the ISO 20022 standard.
In April, Veritran and Swift announced a collaboration to
enhance cross-border payments for financial institutions and their clients.
This partnership, facilitated through Veritran’s participation in the Swift
Partner Program, aims to improve the experience for users conducting
international transactions.
Additionally, Swift and Wise have formed a partnership to
expand cross-border payment options for financial institutions and their
customers. This strategic alliance will enable secure payments sent through the
Swift network to integrate seamlessly with Wise, ensuring end-to-end
transparency throughout the process.
Swift has
announced the launch of two artificial intelligence (AI) pilots in
collaboration with major international banks to enhance fraud detection in
cross-border payments. The initiative aims to leverage AI technology to save
the industry billions in fraud-related costs and improve the efficiency of the
cross-border payments ecosystem.
The first
pilot will focus on enhancing Swift’s existing Payment Controls service, which
helps financial institutions identify potential fraud by detecting anomalies in
payment patterns. By integrating an AI model, Swift aims to create a more precise
system for identifying fraudulent activity based on historical data from the
Swift network. The pilot will involve Payment Controls customers refining the
AI-enhanced service using their live traffic data to ensure real-world
applicability.
In a
separate action, Swift has brought together ten leading financial institutions,
including BNY Mellon, Deutsche Bank, DNB, HSBC, Intesa Sanpaolo, and Standard
Bank, to explore the use of advanced AI technology for analyzing
anonymously-shared data from various sources.
Swift and Global Banks Launch AI Pilots to Tackle Cross-Border Payments Fraud https://t.co/PkEygrzOIQ pic.twitter.com/IuaJLKnPfd
— Latest News from Business Wire (@NewsFromBW) May 30, 2024
The goal is
to strengthen the global financial ecosystem by enabling secure data
collaboration and federated learning technologies. This approach will allow
financial institutions to exchange relevant information while maintaining
strong privacy controls, enabling Swift’s AI anomaly detection model to
identify potential fraud patterns from a more comprehensive dataset.
“AI has
great potential to significantly reduce fraud in the financial industry,” Tom
Zschach, Chief Innovation Officer at Swift, said. “That’s an incredibly
exciting prospect, but one that will require strong collaboration.”
Fraud cost
the financial industry an estimated $485 billion in 2023 alone, and AI is seen
as a powerful tool in reducing these costs.
“Combatting fraud successfully will require
industry collaboration, collective action, and strong leadership from operators
like Swift,” Isabel Schmidt, Executive Platform Owner, Payments Enablement at
BNY Mellon Treasury Services, said. “We’re excited to help lead the first wave
of innovation in this space and look forward to seeing even more banks join the
initiative.”
AI is proving to be a double-edged
sword in financial markets. On one hand, it assists regulators and companies in
combating fraud. On the other hand, it enables fraudsters to devise
increasingly sophisticated schemes, including deepfakes that impersonate
well-known personalities to entice investments.
Swift’s Latest Developments
Swift, a cooperative that operates a widely used financial
messaging service, recently introduced white-labeled tracking services for
cross-border payments to its member banks. The Belgium-based organization has
also standardized its entire payment chain with the ISO 20022 standard.
In April, Veritran and Swift announced a collaboration to
enhance cross-border payments for financial institutions and their clients.
This partnership, facilitated through Veritran’s participation in the Swift
Partner Program, aims to improve the experience for users conducting
international transactions.
Additionally, Swift and Wise have formed a partnership to
expand cross-border payment options for financial institutions and their
customers. This strategic alliance will enable secure payments sent through the
Swift network to integrate seamlessly with Wise, ensuring end-to-end
transparency throughout the process.
