Those of you who are Zementis customers or who have been following us in the market for a long time know that we tend to be rather bullish on predictive analytics. After all, this is our focus and our reason for being! It also happens to be where we see a large value creation opportunity for companies, government entities and other organizations, whether in terms of accelerating revenue growth, reducing operating costs or optimizing other key metrics.
Predictive analytics can help organizations in any industry generate insights that enable informed decisions, and the ability to deploy predictive models as quickly as data science teams develop and certify them is increasingly becoming a key competitive differentiator in a variety of industries.
As a provider of software solutions that enable and enhance predictive analytics for big data, Zementis observes a wide variety of customer applications for our products. Fraud detection and mitigation has always served as a powerful use case for predictive analytics. In 2014, a multitude of high-profile fraud incidents and IT security breaches have reminded us all just how real these threats are, and just how massive the fallout from poor fraud detection and management capabilities can be.
Fraud analytics was the one of the original use cases that we envisioned for Zementis when we started the company in 2004, and it continues to be a core focus for us and for our customers, particularly those in the financial services industry. In this issue of Predict!, we have highlighted some of Zementis’ recent activities regarding fraud analytics. We hope that you enjoy our updates below, and that you remember to keep your passwords safe and change them frequently. A proactive philosophy about fraud and risk management starts at the individual level, complements advanced fraud analytics and ultimately helps us all.
CEO, Zementis Inc
Accenture, FICO and Zementis Talk Fraud Analytics
On October 31, Zementis attended the “2014 Risk and Regulation Summit”, hosted by PRMIA – The Professional Risk Managers’ International Association. Hyundai Capital of America and Accenture co-sponsored the event, and Zementis joined as a guest of Accenture’s Analytics practice.
The half-day event featured a keynote address by Adem Yilmaz, the Chief Risk Officer of Hyundai Capital, as well as moderated panel discussions on implementing effective fraud analytics solutions, the optionality of risk management, and defending enterprise IT environments from cybersecurity threats. The audience consisted of fraud and risk management teams, data science professionals and IT security professionals from the asset management, automotive lending, banking, insurance and health care industries, among others.
Michael Zeller from Zementis spoke as a panelist on the topic of “Implementing Pragmatic Analytics Solutions to Prevent Fraud”, along with Stephen Coggeshall, the Chief Analytics and Science Officer of ID Analytics, and Scott Zoldi, the VP of Analytic Science at FICO. James McMillen, a Managing Director from Accenture’s Analytics practice, moderated the session. The panel covered topics ranging from the efficacy of predictive models in combatting fraud, specific use cases and approaches and actual case studies that Accenture, FICO, ID Analytics and Zementis have observed in the marketplace. Michael noted the close collaboration between Zementis, Accenture and FICO in tailoring predictive analytics solutions for clients / customers in a variety of industries.
The role of analytics in effectively addressing IT security threats was another topic that generated significant interest at the conference. Whether detecting existing or emerging threats, accurately predicting potential threats or reducing an organization’s overall risk profile, advanced analytics can help reduce the likelihood of breaches and effectively minimize the adverse impact of security incidents that do occur. Alex Bolante, a Managing Director of Accenture’s Analytics practice moderated a panel that featured the current CISO of title insurance and services giant First American, Bernie Cowens, and the former CISO of OneWest Bank, Andy Kim. After this panel segment concluded, Zementis fielded questions from various executives in attendance on the topic of predictive models for IT security and the role that Zementis plays in supporting organizations’ IT security strategies and business processes.
Fraud & Risk Management Made Easy (well, easier)
Zementis was proud to attend FICO’s annual conference, FICO World, in San Diego this year, kicking off the week with the pre-conference Partner Summit on November 10 and continuing with the general conference that ended on November 14.
This year’s dynamic agenda covered topics ranging from:
- Broad IT topics (e.g. mobile security, accelerating ROI from analytics applications, analytic modeling in the cloud), to…
- Industry-specific topics (e.g. digital payments, insurance fraud, credit risk management), to…
- Data science (e.g. advanced decision modeling, graph analytics, network analytics)
Zementis contributed to the agenda this year by presenting a session on the critical role that predictive analytics plays in the context of Big Data and decision management. The session also focused on the opportunity that exists for organizations to continuously improve the “decision yield” on their predictive analytics activities.
Organizations that actively use predictive models tend to have a very sophisticated understanding of data science, the advanced business capabilities that analytics can bring and the competitive advantage that can result from incorporating predictive analytics into business strategy and processes. The IT complexity and associated operational costs that often accompany predictive analytics tend to be far less well understood. One way that organizations can address IT complexity and cost challenges is by adopting PMML (Predictive Model Mark-up Language). With PMML, organizations can ensure consistency and re-usability of predictive assets across diverse IT platforms, whether “upstream” analytics authoring applications or “downstream” execution platforms that analysts and business decision makers use. The Zementis session at FICO World explored these dynamics within the context of data science teams, IT organizations and business end users.
Highlights of the session included:
- How the combination of PMML and FICO’s revolutionary Solution Stack approach to predictive analytics
- Analytically powered application development
- Unique decision management assets provide powerful value to PMML adopters
FICO and Zementis have a longstanding business partnership and a rich history of collaboration. The companies’ joint success is based on two principal factors: strong product integration and a strong strategic channel relationship. Zementis’ ADAPA® product, which is based on the PMML standard, complements and extends the capabilities of FICO’s fraud and decision management offerings in three ways:
- ADAPA is integrated into the FICO Analytic Cloud, as part of FICO’s Decision Management Platform
- UPPI is integrated into FICO’s Big Data Analyzer
- PMML seamlessly links the FICO Big Data Analyzer, predictive modeling functionality of the FICO Analytic Modeler Scorecard and model publishing functionality of the FICO Analytic Cloud, allowing both batch and real-time execution of models
At FICO World this year, Zementis outlined the business value that these joint offerings create for FICO customers, highlighting use cases across various industry verticals. While effectively managing fraud and risk is a complex and ever-changing challenge, Zementis and FICO help organizations approach this challenge with a robust toolkit that reduces fraud incidence, lowers an organization’s risk profile and increases confidence – not only for our customers, but also for their customers.
Find here more information about the FICO / Zementis joint solution. To learn more about how PMML helps organizations become more agile in utilizing big data analytics for competitive advantage, you can also download our White Paper, “Standards in Predictive Analytics”.