Finanz Informatik at German Savings Banks successfully tested AI in Fraud DetectionFinanz Informatik at German Savings Banks successfully tested AI in Fraud Detection

(Stuttgart, Germany) — Finanz Informatik, the technical backbone at German Savings Banks, successfully tested artificial intelligence (AI) in fraud detection. Savings Banks executives in the southern German state of Baden-Württemberg told a press conference Monday that the AI is “successfully productive”.

(Read this article in German)

In late 2023, Finanz Informatik provided savings banks with an artificial intelligence (AI)-based solution to aid in the detection and processing of suspected fraud cases in payment transactions.

“With the implementation of artificial intelligence, we will improve even further, as it allows for more efficient handling of suspicious cases and the detection of more instances of fraud,” said Ralf Bäuerle, Executive Director of the Savings Banks Association.

Since the migration to the Single Euro Payments Area (SEPA), the Savings Banks Finance Group has expanded its position as one of the leading payment service providers. Approximately 30% of all German transfers and direct debits are processed by these institutions. They are also among the leading providers in real-time payments. Last year, customers of savings banks in Germany initiated nearly 150 million real-time transfers, a number that continues to rise.

A notable new development is the introduction of a liability rule for payment service providers in cases of fraudulent authorized transfers.

The proposed EU regulation states that if a fraudster poses as a bank employee, the bank should bear the loss. Bäuerle criticizes this approach, stating, “This is clearly excessive. No other sector operates in this manner. Who would hold the police responsible for compensating victims of fraudsters posing as officers? The EU Commission is definitely going too far with this.”

By Lisa Luckas

Lisa Luckas is a Sr. Business News Editor at Nobot.News.

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