#India #Persistent Systems #risk management #Pune #Databricks

Persistent Systems' Advanced Risk Management Solution

In an era where digital transactions are becoming the norm, companies are facing increasing risks associated with fraud and compliance. Persistent Systems, a leading provider of Digital Engineering solutions, has recently introduced a groundbreaking risk management and fraud detection solution powered by Databricks AI. This innovative tool aims to enhance the resilience of financial institutions against growing fraud risks while also responding to regulatory pressures.

The Challenge of Merchant Risk

As the volume of digital transactions rises, financial institutions, payment service providers, and digital platforms encounter a complex web of risks, including fraud, regulatory oversight, and reputational damage. Traditional strategies for fraud detection often rely on static rules and post-transaction analysis, which can significantly limit early detection capabilities. Recognizing this gap, Persistent Systems has pivoted towards proactive risk management, enabling early detection and ongoing monitoring to mitigate potential losses.

How the Solution Works

The newly launched solution leverages Databricks’ advanced Data Intelligence platform, incorporating agent-based AI to conduct a multi-signal review of merchants during the onboarding process. This involves analyzing various factors, such as business profiles, compliance histories, transaction patterns, and external indicators to assess risk before transaction initiation. After onboarding, the system continuously monitors transactions and external signals in real-time, facilitating the identification of potential fraud or compliance issues.

In the event of risk signals being detected, the system triggers customizable responses, such as enhanced monitoring or transaction restrictions, all while maintaining full traceability and governance.

Measurable Business Impact

Data from Persistent indicates that this solution is expected to deliver significant business benefits, including:

• - A 20% to 40% reduction in chargeback and fraud losses through early risk detection.
• - A 30% to 60% improvement in fraud detection accuracy utilizing multi-signal intelligence.
• - A 50% to 70% decrease in manual review workload, freeing up teams for more complex investigations.
• - A 10% to 20% reduction in risk management costs via automation and streamlined workflows.

A Collaborative Effort with Databricks

Persistent Systems has established itself as a global systems integrator partner with Databricks, boasting over 900 certified professionals and more than eight accelerators on the platform. The solution is positioned as a Databricks Accelerator, enabling banks, acquirers, and payment service providers worldwide to adopt its powerful features.

Barath Narayanan, the Global BFSI and Europe Geo Head at Persistent, emphasized that merchant risk has become one of the most complex challenges for financial entities as transaction volumes surge alongside regulatory scrutiny. He stated, “Effective risk management today hinges on the ability to transform data into insights and react in real-time.” This partnership with Databricks aims to provide scalable data processing combined with AI to help these institutions proactively address emerging risks.

Josh Meyer, Global Head of Partner Solutions and Industry GTM at Databricks, echoed this sentiment, highlighting that as payments ecosystems expand and regulatory pressures increase, merchant risk management transforms into a data-driven challenge. The collaborative effort aims to equip financial institutions and payment providers with the tools necessary for real-time compliance and decision-making amidst an evolving landscape.

Conclusion

With this innovative solution, Persistent Systems is clearly committed to enhancing the capacity of financial institutions to navigate the increasingly complex challenge of merchant risk management. By harnessing the capabilities of AI and real-time data analytics, they are setting a new standard for fraud prevention, ultimately contributing to a more secure financial environment.