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

Persistent Systems Launches AI-Driven Merchant Risk Management Solution

Persistent Systems, a global leader in digital engineering, recently introduced a groundbreaking Merchant Risk Management Solution powered by Databricks AI. This innovative platform aims to aid financial institutions in proactively identifying and preventing fraud while significantly enhancing the accuracy of risk detection.

In an age where digital payments are rapidly expanding, financial institutions, payment service providers, and their clients face increasing threats from fraudulent activities, stringent regulatory scrutiny, and reputational risks. Traditional methods of fraud management often rely on static rules and post-transaction analysis, making it challenging to detect issues early on. Persistent’s new solution shifts the focus upstream, enabling early detection, continuous surveillance, and AI-driven action prior to any loss materializing.

Built on the Databricks data intelligence platform, this solution employs agent-based AI to conduct a multi-signal risk assessment of merchants during their onboarding process. It evaluates business profiles, compliance history, transaction patterns, and external indicators to gauge risk even before transactions initiate. Once operational, the system continuously monitors transactions, chargebacks, and real-time third-party signals to uncover emerging risks of fraud or non-compliance.

Upon detecting risk signals, the system initiates configurable actions such as increased monitoring, placement on watchlists, or transaction restrictions, all while ensuring comprehensive auditability and governance. Developed as a Databricks accelerator, this solution integrates batch and real-time streaming data, merchant profiles, and external risk signals into a governed real-time intelligence layer, streamlining the return on investment timeline.

Expected Impact on Businesses

The implementation of this solution is anticipated to yield measurable improvements for enterprises:

• - 20-40% Reduction in Fraud Losses: By facilitating earlier risk detection, businesses can expect a significant decrease in billing and fraud-related losses.
• - 30-60% Improvement in Fraud Detection Accuracy: Leveraging multi-signal intelligence enhances the precision of fraud detection efforts.
• - 50-70% Decrease in Manual Review Effort: Automation allows teams to focus on higher-value investigations, thereby improving overall efficiency.
• - 10-20% Reduction in Risk Management Costs: The automation and streamlining of workflows contribute to significant cost savings.

Persistent Systems, recognized as a Global Systems Integrator partner of Databricks with over 900 certified professionals and eight accelerators on the Databricks platform, has made this solution available immediately. It can be deployed as a Databricks-based accelerator for banks, acquirers, and payment service providers worldwide.

Industry Insights

Barath Narayanan, the Global BFSI and Europe Geo Head at Persistent, emphasized the increasing complexities financial institutions face with merchant risk management as transaction volumes rise and regulatory oversight tightens. Effective risk management now hinges on the ability to convert data into actionable insights promptly. The collaboration with Databricks allows Persistent to merge scalable data processing with AI, enabling financial entities to identify emerging risks sooner, enhance decision-making, and strengthen merchant monitoring throughout the lifecycle.

Josh Meyer, Global Head of Partner Solutions and Industry GTM at Databricks, remarked that as payment ecosystems broaden and regulatory concerns grow, the focus shifts to intelligence-based risk management. The partnership with Persistent helps financial institutions, payment providers, and digital platforms unify data at scale to achieve real-time visibility across the merchant lifecycle, allowing for timely risk detection, informed decision-making, and robust compliance in a fast-evolving payment landscape.

About Persistent Systems

Persistent Systems is a global services and solutions company focused on digital engineering and AI-driven modernization across various industries. With over 26,500 employees across 18 countries, Persistent is dedicated to client innovation and success. The company offers a wide array of services, including software engineering, product development, data analytics, cloud computing, and intelligent automation. Recognized in major indices like the MSCI India and the Nifty Midcap 50, Persistent is also included in the Dow Jones Sustainability Index, reflecting its commitment to sustainable practices and corporate social responsibility.