Fallout from social distancing measures is impacting virtually every facet of daily life in Chile – as it is around the world.
Banking is no exception, as the booming e-commerce sector fueled by COVID-19 has encouraged consumers to tighten their embrace of mobile and internet banking.
Against this backdrop, E.nable- a Chilean company that helps financial services institutions such as banks detect fraud in digital channels- has brought in global digital transformation giant InterSystems to help beef up its capabilities.
The timing has proved favorable as negotiations, which had got underway prior to the outbreak, closed amid the sharper focus on digital transactions. Additionally, on the legislative front, congress passed a bill placing responsibility for card fraud on the shoulders of banks.
With more than 20 years of industry experience, E.nable will incorporate InterSystem’
s IRIS Data Platform to strengthen its fraud detection operations.
In a nutshell, IRIS is a unified data platform that houses a scalable database and has built-in analytics and interoperability tools. Different applications can plug into it.
To find out about the deal and more, BNamericas
spoke to the Chile country manager of US-headquartered InterSystems, Martín Kozak
. InterSystems has also deployed IRIS in the mining sector.
BNamericas: Can you give us a little background on the deal?
Kozak: InterSystems has much global experience in the financial sector, with large clients and partners at this level. We see that, together with E.nable, we can complement each other to deliver the best technology in data management and with extensive experience in fraud resolution in financial markets.
This is an industry that is undergoing a major overhaul and innovation process, so it needs certain additional capabilities such as machine learning, artificial intelligence and top-notch analytics. Given this, the decision is part of InterSystems’ strategy to expand its market presence, using the experience it has in this and other areas and which is very useful.
BNamericas: And how is IRIS Data Platform going to enhance E.nable’s fraud detection services?
Kozak: First, it will provide scalability and elasticity; it will be an update for a platform that, given current demand, requires it.
It will deliver more capacity for real-time analysis of information, which means that immediate action can be taken to prevent fraud. Another benefit is that we are going to deliver the ability to handle and analyze a greater volume of information, which will allow us to bolster the foundations of this business with more and better information. Also, when one starts the process of implementing machine learning and artificial intelligence it will facilitate better bank fraud prediction.
BNamericas: What other companies do you work with in this way?
InterSystems has a strong global presence in the financial sector. It has clients such as Broadridge, a fintech based in the US, clients such as Credit Suisse
and JP Morgan
, among others. Such is its presence that InterSystems handles 50% of the daily transactions of the New York Stock Exchange and about 15% of daily stock exchange transactions worldwide. And this is why we have brought our international experience and adapted it to Latin America, tailoring it to the specific needs of the region.
One of our clients is the International Investment Bank, which set itself the challenge of anticipating growth, so it sought to improve the scalability and profitability of its data management application. And as a result, after a recent review and test of competitive high-performance technologies, the bank again committed to using InterSystems technology.
InterSystems IRIS Data Platform was of particular interest due to its massive horizontal scaling for concurrent transactional analytical processing. A second case to mention is MFS Investment Management, which had a slow Global Portfolio Modeler (GPM), so in order to keep up with growth, it needed to migrate the GPM from a relational database to InterSystems technology, thus achieving its goals of performance, reliability, application availability, scalability and risk reduction.
BNamericas: In the face of the health crisis and the increase in the use of digital solutions (such as mobile banking) that we are seeing, do you think that financial services companies will put, or have to put, a stronger emphasis on the issue of detection of fraud?
Kozak: I think that, with the paradigm shift in consumer behavior, fraud detection technologies will undoubtedly play a fundamental role, because the purchasing habits of consumers are changing.
That is why, recently, we’ve seen a sharp focus on large investment in systems security and on the cost-benefit relationship for this type of outlay.
Given the above, the use of information is essential today and, for this, we need quality information and technology that allows us to scale and make all this information available. It is not much use having a lot of information if you do not take advantage of it; likewise, there’s no point in having the latest technology without the information.
Another aspect to consider is that, little by little, the possibility of sharing information will grow, taking advantage of it from different angles, obviously, considering all aspects of confidentiality and information security. Here, fintech companies have tremendous potential.
BNamericas: How has InterSystems been impacted in Chile since the beginning of the health crisis in terms of operations, and so on?
Kozak: Given our business, we see a slowdown that is the product of this process of imbalance that involves changing work habits, social distancing and a global effect – which also impacts us. We saw that the early stage was more chaotic, because people had to adapt to this new rhythm in the sphere of work. But now operations are more stable…The positive thing is that we have seen, on the part of many clients, the desire to continue investing in projects, understanding that the incorporation of technology is an essential launchpad for the future and for that we are here, to accompany and support them in this process.