Harnessing Open Finance Data and Collaborative Efforts for Enhanced Fraud Detection
Open finance is reshaping the financial ecosystem, offering a potent weapon against fraud through shared data and collaboration. This panel discussion, moderated by Mr. Nikhil Kurhe, CEO of Finarkein Analytics, brought together industry experts to delve into the transformative potential of open finance in combating fraud. Esteemed panellists included Mr Rajit Bhattacharya, CEO of Data Sutram, Mr Anil Yadav, Head of Data Engineering at HDFC Securities, and Mr Saurabh Maheshwari, SVP of Financial Crime Intelligence and Head of DTM at Axis Bank.
The panel emphasised the power of collaboration among financial institutions, fintech providers, and account aggregators to harness shared data and advanced analytics. Such an approach enables the creation of a holistic view of transactional behaviour, making it possible to identify patterns that could signify fraudulent activities. The discussion highlighted how account aggregators, operating within a consent-driven framework, play a crucial role in detecting red flags like recycled email IDs, mismatched identifiers, and inconsistent transaction patterns.
Fraud’s evolving nature—targeting all demographics and exploiting human emotions like fear and greed—calls for technological solutions and customer education. Panelists stressed the importance of robust identity management systems and onboarding controls to address risks tied to mutable identifiers like phone numbers and email addresses.
The session also showcased innovative practices such as banks forming a suspect registry, coordinated by the National Cyber Crime Prevention body (NCRP), to share intelligence on fraudulent behaviours. This collaborative approach and centralised transaction monitoring systems offer a pathway to enhance fraud detection and streamline operations across the ecosystem.
The conversation concluded with a call to action for greater cohesion among stakeholders. By leveraging existing infrastructure, fostering innovation, and maintaining a balance between security and customer experience, open finance can significantly enhance fraud prevention, paving the way for a more secure and inclusive financial environment.
Watch the full panel discussion on harnessing open finance data for fraud detection.
