|86%||Of all bank frauds in India are related to Advances|
|97%||Of all bank frauds in 26 banks in India are related to Advances|
|99%||Of all bank frauds in 15 banks in India are related to Advances.|
Source: Times of India
Frauds related to Advances constitute an astonishingly high percentage of bank frauds in India. Recent events have revealed how loan fraud perpetrated from a single branch can do irredeemable damage to not just the individual bank involved, but could be a contagion risk to the entire banking system in a country.
Traditional risk and compliance audits follow a rear view mirror approach to risk assessment in banks. However, several recent computing technology advancements enable a real-time approach that could transform the way ongoing internal audit and concurrent audits are performed in the banking and financial services industry.
The Digital Whistleblower application from Cordiant substantially lowers the risk of bad loans and bank frauds through Real-time Risk and Compliance Audit powered by automated robotic processes.
The Digital Whistleblower flags risks as they happen using advanced analytics and unbiased risk management techniques.
It notifies stakeholders based on the severity of each risk identified. Low risk items are notified directly to branch for resolution whilst higher risk items are notified in real time to Risk and Compliance Team at headquarters.
Compared to traditional Risk and Compliance Audits which are time-lagged and heavily dependent on sampling, the Digital Whistleblower assesses every single transaction and event in its scope, in real time. The focus is on proactive and timely identification of individual accounts which are at risk due to fraud, fund diversions or non-payments, thereby enhancing the quality of the loan portfolio of the bank at all times.
All Cordiant solutions run from an Operational Data Layer that sits on top of the bank’s core banking data store.
The Operational Data Layer built on DataStax Enterprise scores on speed, availability, consistency, scalability and security while accessing and serving critical financial services data.
DataStax Enterprise(™) is the data management platform of choice of 9 of the top 15 global banks for building and rolling out transformative banking applications for the always-on economy.