The Simility Blog

Balancing Compliance and User Experience with AI
compliance with AI
Gurinder Grewal
Gurinder Grewal
October 18, 2018

Attain business success and complete compliance with AI in the new data economy.

We are living in a data-driven, cognitive world with workloads migrating to cloud environments, always-on smart devices, technologies including Internet of Things (IoT), WLAN, smart cities, and social media—all contributing to an explosion in the amounts of data created every day. This is validated in IBM’s 2017 report on 10 Key Marketing Trends, which states that 90% of the world’s data was created in the previous two years alone, at a staggering rate of 2.5 quintillion bytes of data per day.

Big Data, Big Challenges

With digital transactions becoming the norm, businesses are increasingly using this treasure trove of data to correlate patterns and glean actionable insights to fuel business growth and enhance customer experience. Access to personal details of millions of customers also makes these businesses an attractive target for fraudsters. At the same time, criminals in the dark web are always looking out for opportunities to steal information and launch cyberattacks. Also, 2017 Data Breaches report from Identity Theft Resource Centre suggests that data breaches rose 44.7% in 2017 over 2016.

Further, governments across nations are concerned that businesses have access to oceans of personally identifiable customer information, which can potentially be used to watch and monitor every digital footprint that customers leave behind in the cyber world, leading to invasion of customer privacy. As a result, data security and privacy of customers have emerged as prime concerns for regulators and governments. Consequently, a host of regulations—including General Data Protection Regulation and National Payments Platforms—have been introduced to protect customer data from potential misuse.

The Balancing Act

Businesses must, therefore, find the right balance between business success and ensuring security of petabytes of customer data to remain compliant with government regulations.

Using artificial intelligence (AI), enterprises can make a broader impact across multiple dimensions:

  • Harness the ungodly amounts of data in real time for their business growth, enhance customer experience, and proactively spot and block fraud.
  • Alleviate government concerns through right governance and methodology as well as by building-in transparency and traceability in their processes.
  • Become a good citizen by monitoring, detecting and reporting suspicious criminal activities in their ecosystem.
  • Create economic opportunities for their business partners—especially, small and medium businesses (SMBs)—by providing requisite insights, as these opportunities are usually not possible for SMBs due to a general lack of access to data and advanced tools.

For businesses, compliance to government regulations means maintaining a critical balance between fraud risk and a frictionless customer experience. Ensuring secure transactions can translate into more authentication touch points for customers, leading to greater friction. As a result, organizations need innovative solutions that help them remain compliant without affecting customer experience.

 Leveraging artificial intelligence, businesses can act as good citizens and alleviate government concerns around customer privacy

AI is evolving at an unprecedented pace, providing businesses of all sizes with enormous economic opportunities. However, most businesses, especially SMBs, still lack high-level data analytics capabilities that can help them use data to their advantage.

Businesses, therefore, need a partner that not only enables them to act as good citizens through complete compliance with government directives, but also goes a step farther to help fuel business success in this data-driven marketplace. Businesses need a partner that enables them to see beyond risk management, and helps with real-time visualization of varied data for deep-dive investigative analysis.

Becoming a Good Citizen with Simility

Simility, a PayPal service, helps businesses to successfully comply with prevalent regulations while maintaining a critical balance between friction-less customer experience and accurate fraud decisioning. It also helps businesses develop fraud-sensitive flows to reduce authentication friction for good users.

Through its omnichannel fraud prevention platform, Simility uses artificial intelligence and machine learning for better transaction risk assessment and detecting fraud. Apart from harnessing data—structured and unstructured—from varied sources, Simility solutions enable businesses to proactively prevent fraud while complying with the regulations.

To learn how Simility can leverage AI capabilities for your business to help detect evolving fraud while enhancing customer experience, contact us today.