Bank Mandiri, Indonesia’s largest financial institution, has highlighted its successful collaboration with FICO. Specifically, Bank Mandiri deploys FICO’s Falcon Fraud Manager and the FICO Intelligence Network to safeguard all transactions across its retail channels. This includes its booming digital platforms in a continuously evolving fraud landscape.

In 2022, FICO’s fraud solutions safeguarded over 1.64 billion financial transactions valued at $156bn on Bank Mandiri’s Livin’ mobile banking app, amidst 50% year-over-year growth. As a result, fraud losses on the app decreased by 85% from January to August 2023 compared to the previous year. Across credit and debit cards, fraud losses fell by 77% in 2022.

“The boom in ecommerce and digital banking services in Indonesia post-pandemic, coupled with the expanding economy, has been remarkable,” said Adityo Wicaksono, Senior Vice President Retail Product Delivery & Fraud Risk Group, Bank Mandiri.

“Maintaining customer trust and experience through a comprehensive digital transformation strategy is imperative for us. FICO’s solutions help us to stay ahead of fraudulent actors, so we can focus on delivering exceptional digital banking services for our customers.”

Fighting changing threats

When Bank Mandiri implemented Falcon Fraud Manager, it did not just benefit from FICO’s expertise, technology platform, and fraud models. It also leveraged FICO’s global fraud data consortium, the FICO Falcon Intelligence Network.

The Falcon Intelligence Network is a unique consortium at the core of FICO’s ability to innovate. More than 10,000 financial institutions worldwide provide anonymised, tagged data for monetary and non-monetary transactions, which FICO then uses to train and improve powerful fraud-fighting AI and machine learning-powered models.

“The consortium data allows us to stay ahead of emerging fraud trends,” said Wicaksono. “After the implementation of fraud models and intelligence derived from the consortium, we were able to achieve immediate, impressive reductions in credit and debit card fraud effectively without having to design new fraud models from scratch. We are now ourselves a contributor to the consortium.”

Scale without sacrificing agility

Bank Mandiri’s digital transformation drive in 2023 saw the creation of over 30 new mobile banking features. This includes Paylater and the New Branch Delivery System (NBDS), enhancing customer experiences with Livin’ by Mandiri. Partnering with FICO enabled seamless integration of these innovations into its fraud protection solutions, demonstrating FICO's agility and scalability.