SWIFT, along with global banks, announced it has initiated two AI-based pilot programs aimed at enhancing fraud detection in cross-border payments. These pilots utilize advanced AI technology to improve the accuracy and efficiency of identifying fraudulent activities, potentially saving the industry billions in fraud-related costs.
Pilot Details
- Enhanced Payment Controls: The first pilot enhances SWIFT’s existing Payment Controls service using AI models to detect fraud more accurately by analyzing historical transaction patterns. This will be tested with live customer data.
- Data Collaboration and Federated Learning: The second pilot involves 10 leading financial institutions, including BNY Mellon, Deutsche Bank, DNB, HSBC, Intesa Sanpaolo, and Standard Bank. This experiment focuses on using AI to analyze anonymized data from various sources securely, improving global fraud detection capabilities.
Impact on the Industry
Fraud cost the financial industry USD 485 billion in 2023. The pilots aim to reduce these costs significantly and support the G20’s goal of speeding up cross-border payments.
AI has great potential to significantly reduce fraud in the financial industry. That’s an incredibly exciting prospect but one that will require strong collaboration. Swift has a unique ability to bring financial organizations together to harness the benefits of AI in the interests of the industry, and we’re excited by the potential of both of these pilots to help further strengthen the cross-border payments ecosystem.
Tom Zschach, Chief Innovation Officer at Swift
SWIFT has developed an AI governance framework ensuring accuracy, explainability, fairness, auditability, security, and privacy, aligning with global standards such as ISO 42001, the NIST AI Risk Management Framework, and the EU AI Act.
Insights from Key Figures Involved
Combatting fraud successfully will require industry collaboration, collective action, and strong leadership from operators like Swift. We’re excited to help lead the first wave of innovation in this space and look forward to seeing even more banks join the initiative.
Isabel Schmidt, Executive Platform Owner, Payments Enablement at BNY Mellon Treasury Services
Our passion for holistic payment solutions is founded on expertise, technology, and innovation; not only in terms of our own strategic product development, but importantly through our strong dedication to drive partnership and collaboration across the market. Through these industry initiatives, we have the potential to enhance our ability to detect fraud and reduce operational costs, whilst delivering a premium customer experience and contributing towards a more secure market environment.
Ole Matthiessen, Global Head of Cash Management & Head of Corporate Bank APAC, Middle East & Africa at Deutsche Bank
Building financial resiliency and strengthening risk management is a key priority for our clients and they are looking to us to help them better manage uncertainty and threat through our solutions while supporting their businesses to grow and transform. By utilising new technology and collaborating across the industry to fight fraud, we are helping protect our customers, our data and the bank.
Manish Kohli, Head of Global Payments Solutions at HSBC
Extending and strengthening the collaboration of anti-fraud experts and the exchange of data also at an international level will improve the prevention of and fight against fraud.
Enrico Canna, Head of Anti-Fraud & Customer Protection Center at Intesa Sanpaolo
