Current Situation
Governments have a good handle on procurement and payments, but they still struggle with fraud. Governments provide loans that are crucial to the prosperity of homeowners, businesses, farmers, students, rural communities, and other groups. Agencies struggle to collect the necessary data and put in place the information systems, analytical models, and technical processes for robust risk management to prevent defaults and ensure that these loans are repaid.
Goals and Objectives
The goals are to reduce the administrative burden, minimize the costs of applying for loans, and maximize the use of public funds for their intended purposes. Quickly identify risky loans to minimize default and fraud. Agencies seek fraud-monitoring tools and compliance management tools. They seek to ensure that they receive what they have paid for and that they do not make any improper payment. Increasingly governments are piloting new technologies, such as deploying API connectors to open banking applications to increase convenience for recipients and payers.
Technology Deployed
Hardware: Servers, storage, and network equipment
Software: Enterprise resource management systems that integrate with billing and disbursement applications, analytics, and dashboard to provide a visualization of payment status and risk scores, risk assessment models that incorporate unstructured data (text-based reports and public information), compliance management tools, workflow management, cybersecurity solutions, and change management applications
Services: Business, IT services, cloud, and next-gen security services
Use Case Summary
Expanding the capacity to identify and analyze programmatic risks through automated, data-driven risk assessment tools enables the government to be good stewards of public funds. By using predictive analytics and by setting compliance management rules, agencies can improve their fraud detection success rate — in some cases to over 90%.