NYCUA partners with FinTech firm to help members harness AI

The Albany–based New York Credit Union Association (NYCUA) announced it is working with an India–based financial-technology (FinTech) firm that will offer NYCUA-member credit unions access to fraud-detection technologies including artificial intelligence (AI).

NYCUA has partnered with Quatrro Processing Services (QPS), a Gugugram, India–based fraud and risk mitigation FinTech product provider. 

Utilizing anomaly detection via predictive analytic models, algorithms, and data-driven decision optimization, QPS provides a “competitive advantage and higher return-on-investment for credit unions with enhanced member engagement,” NYCUA contended in a news release.

“QPS is on the cutting edge of fraud prevention and risk mitigation, and they have a proven track record of success with credit unions of all sizes and complexities,” William Mellin, president and CEO of NYCUA, said. “Up until this point, many financial institutions have watched the artificial-intelligence (AI) revolution from the sidelines. Now, New York’s credit unions have a real opportunity to harness emerging AI and machine-learning technologies in ways previously thought unimaginable.”

QPS’ proprietary platform — known as fraud reduction early detection (FRED) — is driven by AI that enables machine learning to design and apply algorithms to learn things from past cases and automate at various thresholds to customize rules. However, the entire platform is overseen 24/7 by a human monitor to ensure no anomalies go undetected.

The platform also helps financial institutions comply with anti-money laundering regulations, including the Bank Secrecy Act, as well as regulations imposed by the National Credit Union Administration, and the New York Department of Financial Services.

“As tech and human intelligence converge on common ground, there is no way to secure transactions without innovative AI and machine-learning technology and advanced data analytics,” Sriram Natarajan, president & COO of QPS, said in the NYCUA release. “At QPS we care about members concerns. Their No. 1 priority is to never fall victim to fraud while not get declined at the point of sale. FRED by QPS epitomizes false-positive management and will help NYCUA credit unions to further enhance their member experience.”

NYCUA is the trade association for the state’s credit unions, which collectively hold more than $83 billion in assets and serve 5.8 million members.