Adatree launches Insights to enhance fraud prevention in finance

Adatree has launched a new product suite aimed at enhancing fraud prevention and operational efficiency in the financial sector.

The offering, known as Insights, includes Account Verification and Balance Checks, utilising the Consumer Data Right (CDR) framework to provide secure, real-time methods for verifying account ownership and balances. The system is designed to support various industries, with applications primarily in insurance, payments, and superannuation sectors.

The framework for this initiative leverages Open Banking, ensuring data is sourced directly from banks. Jill Berry, CEO of Adatree, detailed the significance of the new product. "Adatree's Insights product represents a new era in fraud prevention and operational efficiency," she said. "Leveraging Open Banking and Open Energy, we're empowering businesses to protect their customers against mistaken payments or financial scams. While these practices are common overseas, this is an Australian first."

One of the primary motivations behind the development of Insights is combating financial fraud and scams. In 2023, Australians experienced over AUD $2.7 billion in losses due to financial scams, many targeting superannuation funds and insurers. Adatree's new product aims to mitigate these risks by equipping businesses with tools that verify bank account ownership before money transfers or account detail updates.

The Insights product suite covers individual, joint, and business accounts and maintains direct connectivity to 99.7% of the household banking market in Australia. This connectivity is vital in ensuring the tool's effectiveness across various financial operations. The system also adheres to stringent CDR regulations, safeguarding data security and privacy. This compliance plays a crucial role in building consumer trust, offering transparency and ensuring reliability in financial transactions.

In a significant development, a state government entity has already adopted Adatree's Insights product, underlining the product's utility in both public and private sectors. The government entity's adoption reflects a broader trend where financial institutions and other organisations increasingly seek reliable solutions to streamline their operations and enhance security measures against fraud.

One of the groundbreaking features of the Insights product suite is its accessibility. Businesses do not need to have any CDR accreditation or licensing to use the product. This removes a significant barrier to entry, allowing a wide range of companies to benefit from enhanced security and operational efficiencies. The product's regulated consent process ensures robust security, thereby preventing fraudulent transactions and enhancing overall customer experience.

Adatree's solution is also configurable to a business's specific needs, offering access to various data points such as account name, BSB, and account number. Previously, account details verification relied heavily on manual processes, often requiring bank statements or other cumbersome methods. Insights aims to streamline these processes, reducing administrative burdens and improving overall efficiency.

Consumers stand to benefit significantly from the new system. It provides an additional layer of protection against fraud or incorrect account details, ensuring secure data sharing for authorised purposes only. This enhanced security aligns closely with consumer privacy concerns, fostering a more trustworthy financial environment. The faster and more reliable verification processes also contribute to an improved customer experience.

The introduction of Adatree's Insights product marks a significant stride in leveraging Open Banking to enhance financial security and operational processes in Australia. With its initial adoption by a state government entity and its accessibility to businesses without the need for CDR accreditation, the product is poised to have a substantial impact across multiple sectors. As financial scams continue to pose challenges, tools like Insights will be crucial in safeguarding both businesses and consumers.