Presenting a Proposal to get the order from the client for implementing a Fraud Detection System in a Bank

1. BFSI
TANGO
TECHNOLOGIES

2. AGENDA
About Tango Technologies
Fraud Analytics – An Overview
Your Business, Our Understanding
Tango's Approach
We Sow, You Reap
Why Tango?

3. About Tango Technologies
Founded in 2008
Helping businesses to make better decisions that drive higher levels of
growth, profitability and customer satisfaction.
With 25 locations worldwide Tango has a global presence with its head
quarters in Bangalore, India.
Area of Expertise: Fraud detection in BFSI

4. About Tango Technologies
Our Customers

5. Fraud Analytics
 What is Fraud?
 Criminal activity.
 Abuse of position, or false representation, or prejudicing someone's rights for personal
gain.
 Traditional Methods.
 "Understand not only who your customer is, but who they’re becoming“.
 FICO Falcon Fraud Assessment System is the first Fraud Detection
system using analytics.

6. Fraudulent Activities in BFSI
 Electronic fraud
 Identity theft
 Cheque fraud
 Credit/Debit card fraud
oSkimming
oBIN Attack
oTele Phishing

7. Analytics in Credit Card Fraud Detection
 Risk Scoring based on Neural Network - Risk scoring is a system of predictive fraud
detection that payment processors use to identify the highest-risk transactions to
capture patterns of fraudulent activity, and to differentiate these patterns from
legitimate purchasing activity.
 Geolocation tracking – Uses the users system information, location information,
devices used by the user, etc., to track the customer’s activities and detects fraud.

8. Your Business, Our Understanding
9% 11% 16%
27%7%
10%
15%
26%
3%
5%
9%
19%
4%
7%
11%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014
Market position of different products
Deposits Debit card usage Mobile banking Credit Card
• Well positioned in market - huge deposits and
transactions – YOY increase rate is more than
20%.
• Corporate account & Debit card section growth
– Increased almost 70% in 2013-2014
financial year.
• Credit card section lagging behind the other
products of the bank.
• Growth rate reversed for credit card section.

9. Your Business, Our Understanding

10. Your Business, Our Understanding
14
11
13
25
47
Customers complaint against Credit
Card
Intrest charges others
Annual fees Customer relationship
Security Issues
• Major complaints - Customer Relationship,
Interest Charges and Security Issues.
• 47% fall under Security Issues. Almost 13K
complaints booked during the year 2013-
2014.
• Online frauds - a predominant issue with
the customers.
• No separate customer care section for credit
card.
• ICICI survey says 63% of people will switch
to other credit card if they feel security
issue.

11. Tango's Approach
Transaction Based Scoring
Real Time Decision making
Adaptive Modelling
 Global Profiling

12. Tango's Approach
Could fraud analytics do a better job of protecting not just Anil’s account, but his buying
experience?
Situation : Anil who is living in Kolkata, is on a vacation to J & K.
He is buying a Snow Board from a high-end sporting store.
• Bank A’s Credit Card declined the transaction (Traditional Detection System)
Anil’s Feedback on this : “Being declined was annoying, but not enough to leave
the bank. Still, if they keep bombarding me with irrelevant offers while declining the
purchases I really do want to make, I’m going to think twice about jumping ship.”
• Bank B’s Card approved the transaction (Innovative Streaming Analytics)

13. Tango's Approach – Techniques Incorporated
•Behaviour Sorted Lists – Using Transaction Based Scoring, Behavioural Analytics
capture the granularity of customer habitual patterns.
•Collaborative Profiles - Using Global Profiling, we determine probability based on
the behaviour patterns of other cardholders.
with similar characteristics

14. Tango's Approach – How it works?
• Fraud risk is lower if some aspects of the transaction matches the cardholder
favourites.
• Even with no favourites match, there is a way to anticipate new cardholder’s
behaviour.
• It maps actual individuals to multiple behavioural archetypes in real time and updates
the mapping with each new transaction.
• These archetypes are not conceptual, hand-built categories. Rather, they are machine-
learned by an algorithm that analyzes historical transactional data which can come from
multiple sources in any form.

15. Tango's Approach – How it works?
>>How wide is the difference <<
Actual customer behaviour
is mapped to archetypes in
real time.
The wider the change in
archetype distribution,
the riskier the
transaction.

16. Tango's Approach – How it works?
• As the quantity and variety of data being captured continues to expand, one
of the most important things analytics can do for us is to help us understand
change.
• Knowing ‘what is changing’ and ‘whether it’s important’ is the key in
creating vitality and value in customer relationships, while operating in a lean
and efficient manner.

17. Support
The Product includes one-year free Tango Care subscription.
Tango Care package includes:
One-Day Hands-on Product Training at Client’s Location.
Dedicated Support Assistant with 24 x 7 Support.
Access to Tango Ticket System for general queries.
Product Quality Inspection every 3 months.

18. What’s Next?
Product
Consultant
Assignment
Data Collection POC Submission Final Discussion
Contract
Signoff
Test
Implementation
Production
Implementation
Today 3-Weeks
T T + 2 Weeks T + 3 Weeks

19. We sow, you reap !!!
Fraud Detection to contribute
145 Cr. to the total revenue by
2022.
inCrores

20. We sow, you reap !!!
Merchant Acquisition is
expected to be doubled (100%
increase) upon Fraud Detection
Implementation

21. Why Tango?
Data Science
Offer Services in
Advanced Data Science
& Quantitative
Modelling
Usage of Mainstream Tools-
SAS, R, Python, SQL. Model
requirement Tools: GAUSS,
MATLAB. Data Visualization
Tools: Tableau & Spotfire
Experts in Econometric,
Machine Learning and
Operation Research
Experienced Research
Scientists & Patent Holders

22. Why Tango?
Why do you need us?
Data Science
Offer Services in
Advanced Data Science
& Quantitative
Modelling
Experts in Econometric,
Machine Learning and
Operation Research

23. Business
Instincts
Delivering
combination of
data & art of
business
Timely delivery
of information
using custom
reports via
Dashboards, drill-
downs, roll-ups
and score cards
Presentation of
data using
visualization and
info-graphics
Understanding
the client and
ensuring their
needs and
expectations are
met
Why Tango?

24. “Tango Technologies was very much like our internal team, working on several data science
and analytics problems. They worked closely with me, building cutting-edge social media campaign
management algorithms, and insights frameworks. This enhanced our offerings, helping us win some of our
biggest clients in competitive trials against prominent names in the industry.”
VP of Data Science and Products, Bank of America
“We had an extremely productive association with Tango Technologies. They brought deep
expertise in business analytics and data sciences, along with top notch professionalism. They blended
seamlessly with our operations, engineering, and sales teams. They conceptualized and implemented
advanced statistical frameworks on top of transaction data, helping us identify credit cards open to fraud. I
would strongly recommend them for any data-oriented business problems.”
VP Engineering, RBS
Success Stories

25. “Tango Technologies were excellent as always. Partnership is a buzz word, but Tango
Technology truly embody the concept of partnership, making sure that they understand their
client stakeholders to tailor their service accordingly.”
Global Analytics Manager (WealthCare Financial Group)
“Tango Technologies team’s commitment, dedication, team work and follow through are big
factors to ensure the success of project.”
Senior Director - Planning and Insights (ICICI)
“Tango Technologies generated many insightful slides on their own based on their analysis
of our data, which were not part of the scope/deliverable. Such slides helped us to understand our
product cross-sell and customer behaviour better and were thought provoking.”
Business Intelligence Manager, Deutsche Bank
Success Stories