Logica rolls out Self-Learning module for HotScan payments filtering solution

Logicas HotScan Self Learning allows banks to reduce false positive alerts in sanctions filtering by intuitively learning from users’ previous actions. Currently, most filtering systems raise alerts for between 0.5 and 10 per cent of payments scanned. Following tests against 359,000 payments messages from a global bank, HotScan Self Learning was proven to reduce alerts raised by more than 50 percent.

With regulatory bodies across the globe strengthening enforcement of sanctions filtering, banks face more pressure to contain the cost of sanctions screening. The Single European Payments Area (SEPA) scheme in Europe and the National Automated Clearing House Association (NACHA) in the US currently require new types of payments to be scanned.

Regulators have also emphasised that the risk-based approach used to monitor suspicious activity is not sufficient for sanctions. Within this context, Logica’s Self Learning service eliminates a proportion of manual checking, thus helping lower operational costs.

Logica’s Self-Learning module is available globally as a licensed upgrade for HotScan users or as an option for new customers.