Juniper Introduces an Embedded AI-Powered Fraud Prevention Engine
Juniper Payments Enhances Fraud Prevention with AI Technology
Introduction to Juniper Payments’ New AI Engine
Juniper Payments, a part of the Velera company, has introduced a new feature to its Payments Hub platform aimed at banks and credit unions. This upgrade includes an artificial intelligence (AI)-driven fraud prevention engine designed to help financial institutions implement instant payment options while enhancing security.
Purpose of the Enhancement
The main goal of this new addition is to facilitate the broader adoption of instant payments. By providing real-time fraud detection, Juniper Payments aims to address security concerns that often hinder financial institutions from fully embracing quicker payment solutions. As stated in a recent press release, this tool processes information at the point when a transaction starts and during its processing, providing an extra layer of protection.
Key Features of the AI Fraud Prevention Engine
Real-Time Detection and Decisioning
- The AI fraud detection engine allows financial institutions to identify and respond to suspicious activities as they occur. This capability builds confidence among banks and credit unions, encouraging them to explore fast payment systems without compromising customer safety.
Data Analysis Capabilities
- The system analyzes large volumes of transaction and behavior-related data in real-time. Its advanced algorithms can uncover subtle patterns that may suggest fraudulent activity, effectively lowering the number of false positives, which typically frustrates many financial institutions.
Risk Scoring Across Payment Types
- Apart from instant payments, the enhancement includes risk-scoring functions for traditional payment methods like wires, Automated Clearing House (ACH) transfers, and cross-border payments. This comprehensive coverage ensures all transaction types benefit from enhanced fraud protection.
Integrating Into the Payments Hub
The new AI engine is now part of Juniper Payments’ Payments Hub, a platform designed to manage various payment delivery mechanisms. The Payments Hub connects with major financial infrastructures such as the Federal Reserve and The Clearing House, optimizing payment processes.
Juniper Payments CEO Jon Budd pointed out that many financial institutions have been reluctant to fully adopt instant payment solutions due to security uncertainties. He emphasizes that the new AI-driven fraud protection system provides the necessary assurance for these institutions to move confidently into the realm of faster payments.
Benefits of Instant Payments
Instant payments offer numerous advantages that can help financial institutions grow. According to Budd, instant payment options can meet the immediate expectations of customers, enhancing user satisfaction and retention.
Advantages for Businesses:
- Faster Revenue Collection: Businesses can receive payments almost immediately.
- Improved Cash Flow: Holding onto funds longer allows for better financial management.
- Flexible Payment Scheduling: Companies can strategically plan their payments, freeing up resources for other uses.
Budd notes that once businesses understand the benefits of instant payments, they become eager to utilize such services. This shift could lead to increased consumer adoption, which is beneficial for both customers and financial institutions.
Background on Juniper Payments and Velera
Velera, the credit union service organization previously known as PSCU/Co-op Solutions, acquired Juniper Payments in 2022. The acquisition was based on Juniper’s expertise in the automated banking sector, which the company believes adds “vision and reliability” to its services.
This advancement in fraud prevention and the push towards instant payments demonstrates the growing importance of innovation in the financial sector, particularly as digital payment methods continue to evolve. Financial institutions must adapt and enhance their security measures to stay competitive in this fast-paced environment.
