Volt Bank adds IBM fraud protection into online banking platform

Australian neobank Volt Bank has integrated AI-powered fraud protection software from IBM into its online banking platform.

The IBM ‘safer payments’ solution is being hosted on ISW’s platform-as-a-service and uses “artificial intelligence and machine learning to analyse behavioural and fraudulent patterns”, IBM said in a statement.

“IBM safer payments uses both financial and non-financial data together with a customer’s transaction history, to perform rigorous authentication and profiling on each and every transaction. 

“Potentially fraudulent transactions are quickly identified, allowing them to be stopped or put on hold pending further validation.”

Volt Bank CEO and co-founder Steve Weston said that online and mobile payment practices had made fraud detection “much more challenging”.

“Response times of payment service providers are shrinking due to real-time payments, which is then reducing the window to detect fraudulent activity,” he said.

“Banks that can prevent losses while also avoiding incorrectly classifying genuine payments as fraud, can realise and enjoy a competitive advantage.”

The IBM-ISW capability has been live for ten weeks.

The announcement coincides with an IBM Data+AI summit which kicked off earlier this morning.