[Skip Global Navigation]

Financial Services

Financial Services Home

Risk Management Solutions

Financial services institutions are exposed to more risk than ever. Undetected fraudulent activity, as well as unnecessary credit exposure, puts financial services companies at great financial and legal risk. The seven trillion dollar mutual fund sector is currently exposed to the most risk in its history due to fraud and abuse. Recent legislation trends have introduced stiff penalties for failing to detect fraudulent or erroneous activity patterns. With the cost of corporate fraud estimated at as much as $600 billion annually, and looming regulatory requirements such as Basel II and the USA Patriot Act, deploying timely risk analytics into financial services operations has become essential.

According to industry analyst Datamonitor-driven by pressures related to fraud, money laundering and Basel II-financial services institutions spend on analytics in Europe alone is expected to hit 4.8 billion by 2006. A recent Gartner report predicts that technology spending for risk management will account for nine percent of the average IT budget in financial services.

Lloyds TSB—one of the leading UK-based financial services groups—turned to SPSS predictive analytics to improve their risk management through proactive credit card fraud detection. Due to the industry-wide increase in credit card fraud, Lloyds, along with most other major issuers, recognized the need for improved fraud detection to limit customer and shareholder impact. By integrating SPSS predictive analytics within their existing fraud detection system, Lloyds increased their detection rate for an estimated annual saving of over £2.5 (approx. $3.5) million.

Improve risk management in every customer interaction

SPSS risk management solutions help financial services firms increase capital efficiency and compliance by continually minimizing fraud, credit, and money laundering risk. Put timely, predictive risk intelligence in the hands of every key decision maker and auditor in your organization with easy-to-use, Web-based applications. Deploy real-time predictive risk analytics within your existing systems to detect and minimize risk where it occurs.

Unlike many other risk management solutions, which rely on fairly static business rules, SPSS predictive risk management provides a more open and adaptive system that includes your unique industry expertise in the analysis process. SPSS risk management solutions provide you with the best and broadest range of analytics available to ensure that you have the analytical techniques needed to produce accurate results and keep up with dynamic risk patterns. A standardized methodology and best practice templates ensure predictive modeling processes are transparent, repeatable, and fully compliant with the latest legislation.

Apply predictive risk analytics in your business operations to:

Contact SPSS sales to learn how predictive analytics can deliver rapid return on investment for your organization.