CIBI, FinTech Alliance.PH launch fraud intelligence sharing network

CREDIT BUREAU CIBI Information, Inc. has partnered with the FinTech Alliance.PH to launch the Fraud Intelligence Data Sharing (FIDS) Network starting with nine members.

The nine initial members are BDO Unibank, Inc.; Rizal Commercial Banking Corp.; Salmon Bank (Rural Bank), Inc.; HSBC; GoTyme Bank; UNObank, Inc.; Maya Bank, Inc.; SB Finance, Inc.; and ABUM, which is a micro, small, and medium enterprise (MSME) lending company, FinTech Alliance.PH Chairman Angelito “Lito” M. Villanueva said at a media briefing on Wednesday.

CIBI President Pia L. Arellano said she hopes more institutions, even those outside the financial services sector, join the FIDS network to increase the quality of data in the system.

“The success of FIDS really is dependent on how big an ecosystem of data contribution we can create at this point. The more people join, the more data we contribute, the more we can prevent and detect fraud.”

She added that other industries where fraud is prevalent, such as telecommunications, can contribute data and benefit from the network.

“We don’t want to limit it to just the financial services sector. Fraud is a common enemy for all, regardless of industry. We need the likes of GlobeSmart and all the telcos participating here. We need insurance and other industries as well.”

The FIDS Network uses CIBI’s platform to enable contributing members to detect and prevent fraud through shared real-time data.

Members get real-time alerts if data from an applicant has been flagged elsewhere through a shared database, which is built via the contribution of verified fraud information including confirmed and suspicious activities.

Ms. Arellano said the platform being used for the network has been used in Malaysia and Korea.

“And in Korea, this consortium that they put together has been running for about 10 years already,” she said. “In terms of actual fraud saves, it’s $2 billion in fraud saves since its inception.”

CIBI is offering a free six-month trial period for institutions looking to sign up for the FIDS Network.

“Right now, what we really want to make sure is all of us collectively, all the members as well, find value into it. Value could be in terms of, how much fraud did I stop from happening? How many transactions did not go through because of the consolidated data?” Ms. Arellano said. — Aaron Michael C. Sy