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Swissquote, the Swiss online bank, has chosen NetGuardians to make it easier to combat fraud and meet anti-money laundering requirements.

The NetGuardians AI-based financial crime solutions will monitor transactions at the bank and on the digital finance app “Yuh,” a joint venture between Swissquote and PostFinance, another Swiss bank. (Yuh was launched in 2021.) NetGuardians works with bank software houses such as Avaloq, Finastra, Finacle and Mambu.

NetGuardians’ software will help Swissquote to reinforce the bank’s protection to catch scams such as Authorized Push Payment and other types of payment fraud, the bank said. 

Swissquote cited data showing that APP scams are predicted to double globally by 2026 and become a $5.25 billion industry, putting pressure on firms to adapt. 

The rollout of such AI-driven tools shows how the ability of artificial intelligence to sift through vast troves of data is increasingly important in helping banks, wealth managers and others to keep pace with threats such as fraud and money launderers.

NetGuardians said it works with more than 100 banks and wealth managers, including 40 per cent of all Swiss state-owned commercial banks and three of the top 10 private banks. The firm said banks using its software have reduced customer “friction” by 85 per cent, cut operating costs, and detected new fraud cases.