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Pegasystems’ Unique Benefits
Fighting fraud and illegal activity is one of the greatest
challenges in financial services today. Beyond the possibility
of financial losses, firms must worry about reputational
risk and compliance with BSA / AML / KYC, OFAC regulations,
the USA PATRIOT Act, and more. Financial
institutions face ingenious criminals, unpredictable patterns
of activity, complex and changing regulations, and customers
who will not tolerate being hassled. As
a result, they are seeking solutions that provide control,
transparency, and the flexibility to respond to known and
unknown challenges.
Pegasystems’ Smart Business Process Management
(SmartBPM®)
solutions are tailor-made to help financial organizations
regain control over fraud and suspicious activity. By combining
the power of the leading business-rules engine, PegaRULES®,
and the leading Business Process Management application, Pegasystems
delivers powerful yet highly flexible solutions for the world’s
largest financial services firms, including HSBC, JPMorgan
Chase, Allstate, ANICO, and TD Bank Financial Group.
Fraud and Suspicious Activity Detection
PegaRULES®,
the industry’s leading business-rules
engine (BRE),
allows companies to rapidly develop and deploy sophisticated
transaction-filtering applications. PegaRULES enables multi-dimensional
detection and evaluation across product, customer/segment,
geography, time, transaction value, and other parameters.
The solution applies the full power of an inference engine
with both forward chaining (procedural logic) and backward
chaining to evaluate dynamic business events. Its
rule-decisioning capabilities can also be integrated with
other specialized systems such as pattern-matching solutions
and neural networks, allowing the firm to maximize its identification
of risk events while producing a minimum of false positives.
Investigation
Case Management
For many companies, the greatest challenge is not detecting
suspicious activity, but effectively and efficiently managing
both customer claims and internally identified risk events. Pegasystems’ BPM
capabilities provide end-to-end control over fraud and suspicious
activity by complementing a PegaRULES detection solution or the institution’s
existing detection systems.
Pegasystems’ SmartBPM
Suite,
recognized as an industry "leader" by both Gartner and Forrester
Research,
delivers robust case-management solutions by applying the
full power of the Six
Rs:
- Receive — Integrate systems for maximum intelligence,
using standards-based integration facilities. Create cases
automatically based on risk events identified within Pegasystems or other
applications, or allow manual case entry. Manage any type of structured
data or unstructured content, such as images and reports —
whether stored within Pegasystems or in external
content-management repositories.
- Route — Route cases to departmental workgroups
or individual operators according to risk type, product
type, transaction value, customer segment, operator skills, or other relevant
factors. Apply tailored service levels to ensure timely resolution or
escalation of the case.
- Report — Automatically populate and publish Suspicious
Activity Reports (SARs) based on case data for easy filing.
Deliver insight to management via real-time dashboards and historical
reports. Use over 100 pre-packaged reports, or quickly create new reports
on outstanding risk, historical risk trends, timeliness of case resolution,
and other topics of interest.
- Research — PegaRULES intelligently determines
what information is needed to process each case, then
retrieves it from the appropriate system. When information
is not available electronically, the system prompts the
user to enter just the required information
— no more and no less.
- Respond — Use secure, multi-channel communications
(email, web, fax, letter) to prompt relationship managers,
other employees, and external parties for information about transactions;
communicate requests and status updates to customers; and submit SARs
to FinCEN (the Financial Crimes Enforcement Network).
- Resolve — Perform straight-through processing
of cases whenever possible, using rules defined by the
business and managed by business and IT. Eliminate any
manual steps that can be automated.
Security and Audit Trail
Pegasystems enables a secure environment by leveraging “Triple
A” security parameters: Authentication,
Authorization, and Auditing.
- Authentication can be achieved in many ways,
including internally, externally, or universally (e.g.,
via an enterprise Single Sign-On solution).
- Authorization is accomplished by assigning
privileges to roles. Users have specific roles that are
assigned to them, thus granting or denying them access
to system functionality and work information. The
SmartBPM Suite delivers pre-defined security privileges
out of the box, for different classes of users.
- Auditing documents which actions were
performed on work information (cases) or application rules,
at what time, and by whom. Audit information is available
via XML for reporting, and is displayed in each case. The
solution also includes standard reports for auditing, as
well as the ability to customize reports.
Flexibility, Extensibility, and Enterprise Scalability
Only Pegasystems’ SmartBPM Suite provides key capabilities
for management of enterprise fraud and suspicious activity.
The use of visual workflows, rule forms, and drag-and-drop
user interfaces — instead of traditional code that’s accessible
only to programmers — delivers true flexibility and business
agility. This
allows companies to model, design, implement, and change
functionality in hours and days, rather than months.
Due to this flexibility, the application can be extended
to support new types of fraud and suspicious-activity detection
and processing in record time — across risk categories
(e.g., fraud, money laundering, terrorist financing), product
types, and geographies. Not
only can firms quickly roll out the solution to new areas,
but they can also dramatically reduce investment and ongoing
maintenance expense by consolidating on a smaller number
of solutions. Furthermore,
common business policies can be applied at an enterprise
or division level, while specialized rules can be used
for specific types of risk events. This
prevents the firm from having to re-code logic many times
when a common process or policy changes across the company
(e.g., if SAR guidelines change).
Lastly, Pegasystems set a scalability
world record for
case- and process-management solutions when it
recently conducted a joint test with IBM. The test found
that PegaRULES Process Commander® (PRPC), the process-management
engine of the SmartBPM Suite, could support 31,500 concurrent
users creating and processing 3 million unique cases over
an eight-hour period, involving a total of 88 million business-process
operations — all
with an average system-response time of only 0.05 seconds.
The SmartBPM Suite was architected for the most demanding
enterprise use, and the joint Pegasystems/IBM
test bears this out.
Solution Frameworks
Pegasystems’ Solution Frameworks accelerate the deployment of
fraud and financial crime detection and case-management
solutions. With
packaged frameworks for the banking, insurance,
and healthcare industries — as
well as cross-industry frameworks for compliance, customer
contact management, and other functions — your company will be able
to further lower risk and speed time to value.
Pegasystems' Unique Benefits
Pegasystems uniquely delivers the following key benefits,
allowing financial institutions to regain control over fraud
and suspicious activity:
- Time to Value — Unlike many conventional point
solutions that may take years to begin delivering value, Pegasystems'
solutions introduce rapid development and deployment. Customers often
bring their SmartBPM solutions into production within 90 days.
- Optimizing Across the Business — Pegasystems alone
supports the use of both shared and specialized business logic.
In this way, your company can establish enterprise-, division-,
geography-, and even customer-level rules that guide the handling
of each event in the best possible way.
- Flexibility and Rapid Change — The SmartBPM Suite
enables rapid change through unmatched flexibility. Business logic
is managed within user-friendly rule forms and visual workflows,
rather than hard-coded application logic. An additional benefit
is that the lines of business can directly manage event-detection
and investigation-handling policies under the full oversight of
IT, thus promoting improved IT/business collaboration.
- Reduced Losses, Claims Leakage, and Fines — Ultimately,
Pegasystems delivers better risk management for lower losses
and prevention of fines. Leading organizations keep up with fraud
and financial crime by moving quickly, remaining flexible, and
evolving their processes over time.
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