In a groundbreaking move, Swift is harnessing the power of AI to tackle cross-border payments fraud, collaborating with global banks on innovative pilot programs.
The first pilot enhances Swift’s existing Payment Controls service. By integrating AI models, Swift aims to create a more nuanced and accurate fraud detection system using historical activity patterns on the global messaging network. Live traffic data from member banks will test the model’s real-world applicability.
In a separate experiment, Swift has assembled a consortium of 10 leading financial institutions, including BNY Mellon, Deutsche Bank, DNB, HSBC, Intesa Sanpaolo, and Standard Bank. This group will test advanced AI technology to analyze anonymized shared data, leveraging secure data collaboration and federated learning technologies to uncover potential fraud patterns from a richer dataset.
Tom Zschach, Chief Innovation Officer at Swift, remarks, “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.”
