The Bit Fury Group and FICO have entered a partnership that will develop new risk assessment solutions for monetary systems.
FICO Is at the Head of the Crypto Game
The plan is to assist all traditional banks and standard financial institutions that are looking to offer crypto-based services or products to assess the risks associated with providing said items to customers. This represents a huge change in attitude for banks, who for a long time, wanted to stay as far away from crypto not necessarily because it represented competition, but rather because there were many unanswered questions associated with digital assets.
For one thing, crypto at the time was considered a developing industry. In many ways, it still falls into this category, though it would be wrong to suggest it hasn’t come a long way in a relatively short period. Back then, however, there were still many concerns regarding the safety and, above all, the volatility of the space. Crypto prices were known for rising and falling as often as the sun, but this latest rally appears to have instilled a lot of confidence not just in retail players, but in major institutional offices.
As a result, bitcoin and its crypto cousins are making their way through the financial industry with ease, garnering the support they need to be labeled legitimate assets for all.
But at the end of the day, it would be wrong to assume that there are no longer risks associated with cryptocurrencies, and both FICO and Bit Fury are looking to assess them and make sure banks can provide crypto services in the safest way possible. Through this new partnership, banks will be required to initiate total know your customer (KYC) protocols to ensure that every customer is who they say they are and won’t pose threats to other individuals.
In a dual statement, both Bit Fury and FICO commented:
The joint offering will help banks assess the risk of their clients’ crypto business at the onboarding stage, as well as monitor that risk on all active accounts. This unique combination will enable banks to fully understand and actively manage the risk-exposure from customers – individuals and corporations alike – that engage in virtual currency transactions.
When a new customer is brought on board, they will be required to list all the digital assets they trade. From there, these assets will be cross checked to ensure the person in question is telling the truth. If any suspicious data or activity is found, the risk score is likely to go up.
A Whole New World of Possibilities
Sebastian Hetzler – vice president of financial crimes product management at FICO – stated:
Cryptocurrency services are an under-utilized market for many large banks due to the crypto-related risks and lack of transactional intelligence available. This partnership integrates FICO’s AI-powered financial crimes detection with… extensive blockchain analysis, providing financial institutions with an in-depth crypto-risk assessment of client activities and relationships.
