IndusInd Bank turns fraud management model into a revenue stream

Mridul Sharma IndusInd Bank

One of the fastest growing banks in the Indian market, IndusInd Bank, has always used technology as a competitive advantage. Be it the video branch service or be it the service where the customer gets the choice to withdraw money from the ARM in the denomination of his or her choice, the bank has always taken some bold pioneering initiatives.

One more recent innovation is the way the bank has turned fraud management into a revenue opportunity. Insights from the same analytics system that is used for real-time fraud detection and prevent fraud can be used for better understanding customer behavior too. “By using insights from the fraud management system, we can better understand the way a customer transacts and get more intelligence on his or her transactional behavior. We can look at common patterns and make our marketing campaigns more effective,” states Mridul Sharma, CIO, IndusInd Bank.

IndusInd Bank has realized that fraud and revenue can be two sides of the same coin, and converted this into an opportunity. The genesis of this platform was laid when the bank recognized the importance of integrating insights from different delivery channels into a single platform. To enable real-time detection across different online channels and products, it was essential for IndusInd Bank to correlate data from multiple systems and have an integrated view. Instead of the earlier silo based approach, today, the bank has created one view of the entire transaction flow by connecting 15 real-time and 7 batch systems. This includes systems across products (Cards, Current Accounts, Loans, etc.) and Channels (ATM, POS, Branch, Mobile, etc.). This has helped the bank in proactively detecting and blocking potential fraud transactions.

But, while the same detection capabilities are used for preventing fraud, the system can be modified to use the same data for leveraging cross-selling opportunities. Parameters such as location and client behavior that are useful in detecting frauds can be used for improving the effectiveness of marketing campaigns. “Though this activity is new, we are seeing a significant improvement in the open rates for our online mailers. We can now target customers more specifically,” says Sharma.

For this innovative use of technology, IndusInd Bank won the Celent Model Bank 2017 Global Award for Fraud Management and Cybersecurity for driving a unique initiative. Celent noted that IndusInd Bank not only implemented the real-time enterprise wide cross-channel fraud and AML management platform, but also began reusing in-memory data to offer simultaneous real-time cross-sell and upsell.

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