Anomaly detection is one of the more difficult and underserved operational areas in the asset-servicing sector of financial institutions. Broadly speaking, a true anomaly is one that deviates from the norm of the expected or the familiar. Anomalies can be the result of incompetence, maliciousness, system errors, accidents or the product of shifts in the underlying structure of day-to-day processes.
For the financial services industry, detecting anomalies is critical, as they may be indicative of illegal activities such as fraud, identity theft, network intrusion, account takeover or money laundering, which may result in undesired outcomes for both the institution and the individual.
Detecting outlier data, or anomalies according to historic data patterns and trends can enrich a financial institution’s operational team by increasing their understanding and preparedness.
The challenge of detecting anomalies
Anomaly detection presents a unique challenge for a variety of reasons. First and foremost, the financial services industry has seen an increase in the volume and complexity of data in recent years. In addition, a large emphasis has been placed on the quality of data, turning it into a way to measure the health of an institution.
To make matters more complicated, anomaly detection requires the prediction of something that has not been seen before or prepared for. The increase in data and the fact that it is constantly changing exacerbates the challenge further.
Leveraging machine learning
There are different ways to address the challenge of anomaly detection, including supervised and unsupervised learning.
Anomaly detection is one of the more difficult and underserved operational areas in the asset-servicing sector of financial institutions.
Great info. Lucky me I discovered your website by accident (stumbleupon). I’ve saved it for later!
Hmm it seems like your website ate my first comment (it was extremely long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog. I too am an aspiring blog writer but I’m still new to everything. Do you have any helpful hints for first-time blog writers? I’d genuinely appreciate it.
Cheapest private proxies – costs just $0.15 for every proxies! Purchase at this point and get 50 low cost to your proxy package – https://DreamProxies.com
Everything is very open with a really clear clarification of the challenges. It was really informative. Your website is very helpful. Thanks for sharing!
Hello! I just want to give you a huge thumbs up for the great information you’ve got here on this post. I will be returning to your website for more soon.
Everything is very open with a really clear explanation of the challenges. It was really informative. Your website is very helpful. Many thanks for sharing!
fantastic issues altogether, you simply received a brand new reader.
What might you recommend in regards to your put up that you just made some days ago?
Any sure?
Pretty! This was a really wonderful post. Many thanks for
supplying this information.
Quality posts is the crucial to interest the viewers to pay a quick visit the
site, that’s what this web page is providing.