{"id":233369,"date":"2025-09-17T08:20:15","date_gmt":"2025-09-17T08:20:15","guid":{"rendered":"https:\/\/www.europesays.com\/us\/233369\/"},"modified":"2025-09-17T08:20:15","modified_gmt":"2025-09-17T08:20:15","slug":"finance-leaders-warn-against-giving-ai-a-51-stake-in-decisions","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/233369\/","title":{"rendered":"Finance Leaders Warn Against Giving AI a 51% Stake in Decisions"},"content":{"rendered":"<p style=\"font-weight: 400;\">Financial institutions have long treated customer data as a proprietary asset, but a new PYMNTS report,\u00a0\u201c<a href=\"https:\/\/www.pymnts.com\/study_posts\/fighting-fraud-finding-trust-amid-banking-data-deluge\/\" target=\"_blank\" rel=\"noopener nofollow\">Fighting Fraud and Finding Trust Amid Banking\u2019s Data Deluge<\/a>,\u201d suggests the bigger competitive advantage may come from knowing when to pool information.<\/p>\n<p style=\"font-weight: 400;\">In a digital economy where fraud evolves by the week and government datasets are shrinking, banks and credit unions are discovering that collaboration, not just competition, can make the difference between trust gained and trust lost.<\/p>\n<p style=\"font-weight: 400;\">The study is part of the PYMNTS \u201cSearching for Reliable Signals in Banking\u2019s New Data Reality\u201d series, which examines how banks, credit unions and FinTechs are rethinking data strategies as artificial intelligence (AI) takes on a larger role.<\/p>\n<p style=\"font-weight: 400;\">The report draws on perspectives from executives at <a href=\"https:\/\/www.velera.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Velera<\/a>, <a href=\"https:\/\/www.entersekt.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Entersekt<\/a> and <a href=\"https:\/\/about.concoracredit.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Concora Credit<\/a>, who warn that financial crime now requires \u201ca team sport\u201d approach.<\/p>\n<p style=\"font-weight: 400;\">Their common message: data remains indispensable, but its reliability depends on balance \u2014 blending historical records with real-time signals, human oversight with machine intelligence, and institutional rivalry with shared intelligence.<\/p>\n<ul>\n<li>Fraud is forcing speed onto the system.\u00a0Entersekt\u2019s Pradheep Sampath said traditional government feeds \u2014 from the Fed\u2019s fraud reports to FinCEN filings \u2014 are too slow to meet today\u2019s threats. Nearly all respondents in the series pointed to the need for blending historical bureau data with behavioral analytics, device fingerprints and geolocation markers that can detect anomalies in the moment.<\/li>\n<li>Collaboration is edging out isolation.\u00a0Velera\u2019s Jeremiah Lotz highlighted how consortium models aggregating data from thousands of credit unions are already producing stronger defenses. A striking 100% of the executives interviewed described fraud management as \u201ccompetitive-neutral\u201d \u2014 one of the few areas where rivals can safely share signals without ceding advantage. Privacy-enhancing tools like encryption and federated data models were cited as the bridge.<\/li>\n<li>Alternative data is gaining ground.\u00a0Concora Credit\u2019s Kyle Becker reported that layering in about a dozen new alternative datasets each year improves both underwriting and fraud detection. Cash-flow underwriting in particular was singled out as a tool that both widens credit access and strengthens defenses. The report notes that institutions finding even \u201cone or two\u201d viable new data sources annually can compound improvements in risk management over time.<\/li>\n<\/ul>\n<p style=\"font-weight: 400;\">What emerges from these findings is a shift in mindset. Fraud prevention is no longer seen only as an arms race of better models and faster alerts, but as an ecosystem challenge in which financial institutions rise or fall together.<\/p>\n<p style=\"text-align:center\">Advertisement: Scroll to Continue<\/p>\n<p style=\"font-weight: 400;\">The executives interviewed by PYMNTS stressed that no single dataset, no single tool, and no single firm can fully address fraud. Instead, they called for \u201clayered intelligence\u201d \u2014 a mix of bureau records, first-party transaction histories, commercial datasets and real-time signals, deployed with governance.<\/p>\n<p style=\"font-weight: 400;\">In a landscape where consumer expectations for safety and convenience continue to climb, the line between fraud defense and customer trust has blurred. As the report concludes, reliable signals are not found, but built \u2014 through cooperation, governance and a willingness to see data not as a walled-off asset but as a shared defense mechanism.<\/p>\n","protected":false},"excerpt":{"rendered":"Financial institutions have long treated customer data as a proprietary asset, but a new PYMNTS report,\u00a0\u201cFighting Fraud and&hellip;\n","protected":false},"author":3,"featured_media":233370,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[691,738,8392,259,66089,33732,30529,50,33734,751,158,66091,67,132,68],"class_list":{"0":"post-233369","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-banking","11":"tag-banks","12":"tag-data-brief","13":"tag-featured-news","14":"tag-fraud-prevention","15":"tag-news","16":"tag-pymnts-intelligence","17":"tag-pymnts-news","18":"tag-technology","19":"tag-the-data-point","20":"tag-united-states","21":"tag-unitedstates","22":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115218666545715396","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/233369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=233369"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/233369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/233370"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=233369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=233369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=233369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}