Bank of New Zealand has signed a multi-million dollar cross-channel fraud prevention technology deal with tech giant IBM.
As part of the deal, BNZ is deploying IBM Safer Payments, a new transaction monitoring solution that enables banks to intercept fraudulent activity before it happens.
The platform utilises machine learning and artificial intelligence technology to evaluate behaviour and fraud patterns, build models for new fraud threats and propose counter responses.
It also leverages financial and non-financial data as well as customer’s transaction history to authenticate transactions.
Accordingly, it can identify any fraudulent transactions swiftly as well as block suspicious ones until further validation.
The cross-channel fraud prevention solution is also said to comply with all credit card scheme rules.
BNZ chief safety and security officer Owen Loeffellechner said: “We are ruthlessly vigilant in protecting our customers’ trust in us, and we put security front and centre so they can be sure their money and personal information is well-protected.
“With IBM Safer Payments, we are stepping up this protection, analysing every transaction in real time, but without sacrificing the customer experience.
“Everything we do to protect our customers from fraud and cybercrime also helps us contribute to upholding New Zealand’s excellent ecommerce and trading reputation globally.”
The implementation of IBM Safer Payments is already underway and is expected to be completed in the following weeks.
IBM New Zealand managing director Mike Smith said: “Banks are facing the challenge of needing to adapt to meet their customers’ evolving expectations for a frictionless transaction, while also ensuring their security.
“With financial crime becoming increasingly sophisticated, BNZ partnered with IBM to address the rising threat of crime and fraud while still enabling top quality experiences for customers and allowing for future growth.”