Swift, a banking co-operative, is set to launch an AI-powered anomaly detection service in January 2025, designed to help banks proactively identify and thwart potential financial crime. This new service enhances Swift's existing Payment Controls Service by utilizing pseudonymized data from billions of annual transactions on its network, allowing for real-time detection and action on suspicious activities. The initiative follows a successful pilot involving financial institutions from Europe, North America, Asia, and the Middle East. Jerome Piens, Swift's chief product officer, emphasizes the need for heightened defenses against increasingly sophisticated financial crimes.
Since February, Swift has collaborated with member banks to explore federated learning and privacy-enhancing technologies to share information without exposing proprietary data. This collaboration has led to the development of various fraud detection use cases now undergoing testing in a sandbox environment. Olivier Nautet of BNP Paribas supports the initiative, highlighting the importance of sector-wide collaboration in enhancing fraud detection and protecting the global financial ecosystem.
Source: Finextra
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