Aci PRM Enterprise Risk

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ACI Confidential Not for
Distribution to
Customers/Prospects
Internal Use Only
The opportunity . . . . . . . . . . . . . . . . 1
Why should I care?
Why now?
What do I sell?
The customer . . . . . . . . . . . . . . . . . . 6
To whom do I sell to?
What impact can my customer expect?
Who is a successful customer?
The competition . . . . . . . . . . . . . . . 11
Who is the competition?
How do I show strength?
The first call . . . . . . . . . . . . . . . . . . 15
How do I start?
How do I assess the opportunity?
What are the potential objections?
The sales cycle . . . . . . . . . . . . . . . . 19
How do I execute?
What is a typical deal?
What resources are available?
ASK4105 07-08
Why
should I care?
ACI Proactive Risk Manager for Enterprise Risk Sales Kit 1
Why is this opportunity worth my time?
Why is it worth my customers time?
ACI offers a rules-based, neural network enterprise-wide fraud detection
solution that provides the following benefits:
Reduces fraud losses significantly and helps minimize overall
operating costs
Monitors all of a financial institutions interaction with its customers,
enabling the institution to better profile each customers behavior to
more accurately detect fraud and financial crime
Enables users to prevent fraud losses by detecting fraud
during authorization
Consolidates risk management activities into a single system
Assists users in retaining customers by using a behavior-based fraud
detection model that allows institutions to protect all customers while
minimizing customer impact
Protects the users brand and reduces risk to reputation
Provides valuable management information by capturing and maintaining
statistical data on overall business performance
Ensures maximum accuracy of the custom model in detecting
new fraud schemes through customer-controlled model updates
Maximizes analyst productivity, efficiency and performance by way of
easy-to-use Java-based, graphical Microsoft Windows interface that
automates risk operations and case management workflow
What advantage does ACI have in
the marketplace?
With more than 30 years of experience in EFT processing and
transaction security, ACI is the recognized leader in processing electronic
payment transactions.
ACIs global reach includes more than 800 customers in over 80 countries.
ACIs comprehensive payments solutions portfolio includes
wholesale banking, retail banking, fraud management, e-infrastructure
and e-commerce.
ACI offers global support through more than 40 local offices around
the world.
ACI is the leading provider of enterprise risk solutions, with Proactive
Risk Manager protecting over 2,500 institutions worldwide in more than
40 countries.
Opportunity at a glance
Application area
Detects fraud across the entire enterprise
Protects against a variety of financial crime
techniques, including identity theft and
fraud by check, telephone, POS, ATM,
e-commerce and employees
Conducts both near-real time and in-flight
fraud checking
Provides comprehensive workflow
functionality to manage alerts
Analyzes all transaction and customer
information for comprehensive fraud analysis
Detects counterfeit activity with a
point-of-compromise manager
Provides single- and multi-institution
capabilities
Offers EMV and multicurrency capabilities
Partner
IBM
Eunexus
SIDE International
Platform
IBM System z
IBM System p
Sun Solaris
Microsoft Windows
SUSE Linux
Target market
Financial institutions, including retail and
wholesale banking institutions
Third-party processors
Retailers
Average
size deal
Tier 1 financial institution: US$3.5 million (software only)
Tier 3 financial institution: US$1 million (software only)
Tier 4 financial institution: US$500,000 (software only)
Nonfinancial institution (processor): US$2 million (software
only)
Average
sales cycle
618 months
Will also
help
ACI Automated Case Management System
ACI Dispute Management System
ACI Smart Chip Manager
2 ACI Confidential
Why
now?
Breaking down payments barriers
Cross-border initiatives, such as SEPA, and faster payments initiatives
have opened new opportunities for fraud. The U.K. Faster Payments
initiative is a good example of this because many payments will be
made in near-real time instead of requiring the current three-day
delay. This poses a problem because in the U.K., banks have had a
significant amount of time to subject transactions to risk analysis
before payment was made on a transaction. This will no longer be
the case in the real time Faster Payments environment.
In a faster payments environment, it is vital that financial
institutions have the technological intelligence to make
informed decisions against fraudulent payment attempts. If a
payment is fraudulent, then the bank must be able to stop the
attempt in its tracks.
SEPA has opened new opportunities for fraud, as the barriers to
inter-country transactions throughout European Union (EU) states
will become easier. New products, such as direct debit and credit,
will enable fraudsters to move money between accounts quickly
and easily just like with U.K. faster payments.
The ability to monitor payments in-flight is crucial.
Increased concern about complex fraud
schemes and identity theft
Criminals have become cleverer and their fraud schemes more
complex. For example, in early January 2008, a Colombian man
pleaded guilty in federal court to 16 counts of involvement in
a complex computer fraud scheme, which victimized more than
600 people.
According to the indictment, the man and a co-conspirator engaged
in a complex series of computer intrusions, aggravated identity thefts
and credit card fraud schemes designed to steal money from payroll,
bank and other accounts of their victims. The men used the money to
buy expensive electronics and luxury travel and accommodations in
various countries, including Hong Kong, France, Jamaica, Italy, Chile
and the United States.
Identity theft has become a serious and pervasive threat to
consumers and financial institutions. Estimates vary on the
true impact of the problem; however, the U.S. Federal Bureau
of Investigation (FBI) reports that law enforcement and
consumer advocacy groups agree that financial institutions lose
billions of dollars each year to identity theft, and consumers face
additional hardships, ranging from financial loss to time spent trying
to undo the harm caused to their credit records and other aspects of
their lives.
A 2006 Federal Trade Commission (FTC) survey estimated that 8.3
million American consumers, or 3.7 percent of the adult population,
became victims of identity theft in 2005. Credit issuers and
banks take the brunt of the losses because victims are rarely held
responsible for fraudulent debts.
The ability to profile customer payments across channels or products
is imperative.
The move to enterprise risk management
Change in fraud and financial crime occurs swiftly, with new
approaches to Internet fraud and new attacks occurring all the time.
For effective fraud detection and prevention, financial institutions
must monitor Internet banking transactions in real time with a
comprehensive system that monitors their full transaction activity.
The concept of enterprise risk management (ERM) emerged in
the early 1990s and is based on the reasoning that to effectively
prevent and detect fraud, a financial institution must develop a
framework for managing risk across the organization. This includes
understanding and maintaining internal controls; ensuring all risks
are identified and mitigated in strategic planning initiatives; and
underpinning all of this with sound, low-risk operational management
at every level and unit and across every business line, account,
process, function and role.
ERM also takes a holistic view of a financial institutions relationship
with a customer by collectively viewing every product or service
the customer uses. This enterprise-wide approach protects financial
institutions from fraud at every level, from money laundering activity
to identity theft to deposit fraud essentially any type of fraud that
causes an institution or its customers monetary loss or potentially
damages the institutions reputation.
Worldwide adoption of EMV
Countries around the world are gradually moving to chip and PIN as a
strategic defense against card fraud. The United Kingdom has received
much publicity about fraud levels since the rollout of chip and PIN in
2006. Key trends are the reduction in traditional forms of fraud (lost
and stolen cards) and domestic ATM fraud.
Nevertheless, fraud losses have not declined dramatically
because fraud has merely migrated to other areas. Fraudsters have
modified their techniques to other forms of fraud, most notably
cross-border ATMs in areas where ATMs are not EMV-compliant,
CNP fraud and identity theft. Until all countries become
EMV-compliant, traditional card-present fraud techniques
ensure the least risk.
Even with worldwide EMV compliance, however, no one can
guess what the fraudsters will do next. It is imperative that fraud
managers maintain their defenses and invest in a comprehensive,
flexible and adaptable fraud management system so they are ready
for new fraud attacks.
Why
now?
Did you know?
The need to improve fraud detection effectiveness while
reducing costs remains a consistent theme and will be
pursued through improved customer due diligence and a
risk-based approach. Institutions tell us that today, these
two areas present them with the most potent opportunities
for business benefit providing that data access and
technology issues can be overcome.
Source: Datamonitor report Securing the Future:
Enterprise-wide financial crime management and beyond
In the United Kingdom, Internet fraud on cards is part of the
card-not-present (CNP) fraud total of 212.6 million. In 2006
the amount of CNP fraud that took place over the Internet
is estimated at 154.5 million 73 percent of total CNP
fraud losses. This figure rose by 32 percent from 2005, when
Internet losses were 117.0 million and accounted for 65
percent of CNP fraud losses.
Source: APACS 2007 fraud report
According to a 2007 Datamonitor survey, senior heads
of financial crime and compliance from tier one financial
institutions said that their most widespread cause for
concern is identity theft. Identity theft was named among
the top three issues by 95 percent of survey respondents
versus 87 percent in 2006.
There can be no question that the move toward
enterprise-wide financial crime management is
technologically enabled. In recent years, technology
proliferation has left most financial institutions with a
plethora of siloed detection and investigation systems
that support a single territories, channels or business lines
in isolation. In an industry that lacks both the appetite
and the budget for large-scale technology replacement,
the emergence of agnostic technology platforms, able
to consolidate and act upon information drawn from the
numerous detection systems already in place, provides
a means to leverage rather than abandon existing
technology investments.
There can be no question that the desire to improve
fraud detection accuracy is driven by a hunger for efficiency.
The incidence of false positives is high and costs the
industry dearly. Eliminating false positives is the key to
investigative efficiency, driving down the amount of time
spent by expensive investigators chasing wild geese down
blind alleys.
4 ACI Confidential
What
do I sell?
Brief description of the product
ACI Proactive Risk Manager for Enterprise Risk is a complete fraud
detection solution to manage risk across a financial institutions
business lines and customer accounts. Proactive Risk Manager
combines the power of expertly defined rules with a custom-trained
neural network model for fast, accurate and flexible response to the
evolving and growing nature of fraud.
Through its custom neural-network technology, Proactive Risk
Manager compares the characteristics of each customers activity
with the custom fraud model and recorded patterns of behavior for
every account holder it sees. It then assesses and scores the risk in
near-real or real time for each transaction using a variety of advanced
algorithms, parameters and accumulated statistics. In addition,
Proactive Risk Manager provides reviewers with precise reasons for
the score, improving transaction analysis.
Proactive Risk Manager provides comprehensive Microsoft
Windows-based workflow management capabilities to fraud
management, with expert rules-based strategies at the core of this
process. This component builds on the fraud expertise of the staff
by allowing the creation of real time rules. Transaction activity
matching a rule generates alerts, which are delivered to reviewers
via a user-friendly Java client interface. A comprehensive set of
tools enables supervisors to direct workflow and manage reviewers.
Proactive Risk Manager captures and maintains statistics on fraud
savings and losses and reviewer and model performance to provide
valuable management information.
Proactive Risk Manager has built-in interfaces to a number of ACI
products, including the ACI Automated Case Management System,
BASE24-eps and the ACI Money Transfer System. Proactive
Risk Manager also interfaces with third-party products from SIDE
International for list checking, Adeptra for automatic contact
resolution, and Eunexus for Internet security and online fraud.
Solution Platform
ACI Proactive Risk Manager for
Enterprise Risk
In-house solution requires
the following:
IBM System z
IBM System p
Sun Solaris
Microsoft Windows
SUSE Linux
Services Other
ACI offers a full suite of
services that include but are
not limited to the following:
Installation
On-site technical services
Project management
System design and
development
Product implementation
support
Training and education
Business consulting
Performance review
System configuration
recommendations
Security Optimization
Services (SOS) consulting
HELP24
ROI consulting
ACI Automated Case
Management System
ACI Dispute Management
System
ACI Smart Chip Manager
Want more information?
www.aciworldwide.com
What
do I sell?
Features at a glance
Offers rules-based strategies that match activity against a set of user-defined conditions to identify suspicious behavior,
allowing organizations to react quickly to emerging fraud
Provides early warning of suspect activity with powerful neural network models, reducing fraud and limiting the impact on
account holders
Utilizes an easy-to-use Java-based client interface to automate workflow management, increasing reviewer performance
Captures and maintains statistical data on queue status, reviewer and model performance to provide valuable processes
Interoperates with an existing authorization and end-of-day batch processing system
Operates on a wide range of platforms
Integrates with BASE24-eps, the ACI Money Transfer System and the ACI Automated Case Management System
Host
Customer
Demographics
Data Sources
e.g.: POS, ATM, Check, Electronic Banking
Case Creation Investigations
Alert
Queues
Fraud Analysis
and Review
Input Process
Rules
Engine
Scoring
Engine
Real
Time
Rules
Engine
Scoring
Engine
Near
Real
Time
Automated Case Management
Non
Financial
Financial
Target Market
Primary target markets
Financial institutions, including retail and wholesale
banking institutions
Third-party processors
Retailers
The above could include the following:
Existing Proactive Risk Manager customers looking to expand their
fraud management capabilities
Existing ACI customers looking for an enterprise-wide fraud
detection solution
Organizations running non-ACI product solutions and looking for a
product solution
Organizations using in-house legacy fraud detection solutions
looking for a vendor solution
Institutions with a fragmented fraud detection solution looking for
a single enterprise solution
Institutions such as processors looking to run a fraud system on
behalf of their customers
Prequalification
Which three financial crimes are your highest priority?
Can you describe your current fraud systems infrastructure?
How consolidated are your fraud systems today?
Head of group risk
Needs to direct and manage fraud, risk and compliance
Wants a single view of the customer to identify suspicious activity
Wants to consolidate silos of business intelligence
Wants to monitor transactions in real time
Wants to prevent fraud as a result of identity theft or
account takeover
Needs to reduce fraud losses
Wants a system that can be reconfigured quickly to address new
fraud trends as they arise
Head of risk or fraud
Needs to direct and manage fraud, risk and compliance
Needs to prevent fraud as a result of identity theft or
account takeover
Needs a single view of the customer to identify suspicious activity
Needs to monitor transactions in real time
Wants to quickly identify potential fraud on other products to take
precautionary measures
Wants to reduce false positives
Needs to access information and report on both system and
operational performance
Head of issuer fraud
Needs strategic and operational solutions for merchant fraud
Wants to reduce ATM and CNP fraud losses
Needs to be able to review and act on all alerts
Wants to reduce customer contact and improve customer service
Needs to monitor transactions in real time
Wants to access information and report on both system and
Head of acquirer risk
Needs strategic and operational solutions for merchant fraud
Wants to reduce customer contact and improve customer service
Wants to access information and report on both system and
Wants to reduce losses from merchant bust-out schemes
Needs to know how well merchants are following procedures
Who do I talk to in the account and what are their needs?
To whom
do I sell?
6 ACI Confidential
Benefits Measurable results the customer can expect We deliver these results by
Significantly reduces fraud
losses and helps minimize
overall operating costs
Allows users to quickly reconfigure the
system to address new fraud trends as
they arise
Enables users to track non-monetary
transactions and events in conjunction
with monetary transactions
Allows users to extend their detection
capabilities through the addition of neural
network technology
Allows users to move from near-real time
detection to real time prevention
Providing a system that is easy for users to configure and
reconfigure without technical help
Providing a solution that operates in real time to prevent
fraud as it is attempted
Monitors all of a financial
institutions interaction with
its customers
The ability to better profile each
customers behavior to more accurately
detect fraud
Monitor all channels, products and services
that a customer uses
Cross-reference customer activity while
monitoring transactions
Providing a solution that enables users to detect fraud
earlier and pick up more subtle fraud
Enabling users to detect suspicious activity so they reduce
their exposure to fines and risk to reputation
Enables users to prevent
fraud losses by detecting
fraud during authorization
Monitors all of a customers transactions in
real time
Helps combat fraud in SEPA and faster
payments environments
Providing a solution that has been designed from
the ground up to operate in real time so users can
incorporate fraud risk management in to the
authorization process
Consolidates risk
management activities
into a single system
Data is held in a central repository
Reporting is easy and fast
Providing a solution that requires fewer reporting
resources, is more timely and is less prone to errors
Assists users in retaining
customers
Allows institutions to protect all customers
while minimizing customer impact
Providing a behavior-based fraud detection model
Protects the users brand and
reduces risk to reputation
Enables users to track non-monetary
transactions and events in conjunction
with monetary transactions
Providing a solution that increases the users ability to
detect identity theft fraud and account takeover fraud
Provides valuable
management information
Stores every action undertaken by the
system and each user, and this information
can be used for measuring operational and
system performance
Provides a complete audit trail
Stores data about a merchants education
an training, so users can write rules on
merchant transactions
Providing a solution that captures and maintains
statistical data on overall business performance
Enabling users to identify areas to focus on to improve
Providing a solution that enables users to monitor
merchant activity
Ensures maximum accuracy
of the custom model in
detecting new fraud schemes
ACI can modify the custom model
as needed, and changes can be
implemented quickly
Reduces false positives
Allows users to control how rules are
configured and how alerts are generated by
using scoring thresholds
Providing a solution that enables regular model updates
Providing a solution that focuses resources on the highest
risk cases, thus reducing losses
Offering a highly accurate solution that reduces customer
contact and improves the customer experience
Proactive Risk Manager for Enterprise Risk Sales Kit 7
What impact can
my customer expect?
8 ACI Confidential
What impact can
my customer expect?
Maximizes analyst
productivity, efficiency and
performance
Automates risk operations and case
management workflow
Stores every action undertaken by the
system and each user
Providing a solution that requires fewer resources and is
more timely and accurate
Providing an easy-to-use Java-based, graphical Microsoft
Windows interface
Providing information that helps users identify the right
areas to focus on to improve operational performance
Multi-institution Provides a worldwide or distributed
approach to managing fraud across
multiple banks or branches
Providing a solution that allows institutions to
implement local instances of the product or regional
hubs for subsidiaries
Providing a browser-based, configurable user interface
Providing a multicurrency solution
Who is a
successful customer?
Proactive Risk Manager for Enterprise Risk Sales Kit 9
Customer scenarios
Implement a highly effective enterprise fraud risk solution
Situation A tier 1 institution wanted to consolidate disparate fraud systems into a single fraud system.
Challenge The customer wanted to bring together information from multiple complex legacy systems into
one environment.
What we did After reviewing the banks existing fraud problems, ACI quickly determined that Proactive Risk Manager for
Enterprise Risk met the banks needs, not only for helping to detect fraud sooner, but also to manage the
workflow associated with monitoring, detecting and eliminating fraud losses.
Impact The bank can now view all transaction types across the customer account. This significantly reduces
fraud losses across the institution and dramatically improves customer satisfaction, thus improving
customer retention.
Multichannel fraud detection with a third-party product
Situation The National Australia Bank (NAB) needed to improve its fraud detection system when fraud gangs, primarily
from Eastern Europe, cast their eyes on Australian banking institutions.
Challenge With the attacks in Australia, NAB experienced an increase in attempted fraud activity, via phishing e-mails.
NAB understood that a number of approaches were required if it was going to offer its customers the best
possible security and minimize losses.
What we did NAB discovered strong trends around IP addresses and its Internet banking accounts that had been
compromised. The bank decided to enhance its counterattack by looking at IP addresses using Eunexus
IP Intelligence. NAB also conducted analyses within ACI Proactive Risk Manager that accessed data about
fraudulent IP addresses within the Proactive Risk Manager database. The team developed several techniques
to increase detection. These techniques provided a strong behavior and IP profile for each customer.
Impact NAB can now identify a significant portion of compromised accounts before funds have been withdrawn,
which has helped protect customers. Using Proactive Risk Manager, NAB can establish an expected footprint
for a customer and therefore identify which Internet banking logins and transactions dont fit a customers
normal usage profile, helping operators make intelligent decisions when theyre working through alerts.
Using these two simple techniques, Proactive Risk Manager now has to monitor only 2 percent of Internet
transactions before the rules are applied. From that point forward, the banks customized Proactive Risk
Manager rules scrutinize every transaction that doesnt meet those criteria. This allows NAB to detect virtually
all Internet banking fraud.
Who is a
successful customer?
10 ACI Confidential
A top-tier bank reduces fraud and operational costs
Situation A tier 1 financial institution wanted to bring together credit and debit card fraud detection.
Challenge The institution didnt have the ability to simultaneously monitor credit and debit accounts. Also, the growing
cost of fraud increased operational costs, and the institution needed reduce both.
What we did After reviewing the banks situation, ACI provided the bank with a combination of ACI Proactive Risk Manager
for Enterprise risk and consultancy services to optimize the use of Proactive Risk Manager in the environment.
Impact The bank not only experienced a reduction in credit and debit card fraud with the consolidation of the
two systems, but also significantly reduced operational costs through a decrease in labor costs and IT
infrastructure overhead.
Reduce fraud losses
Situation Alliance & Leicester (A&L) is one of the United Kingdoms major financial services groups, offering a broad
range of financial services to personal, commercial and small business customers.
Challenge A&L sought a solution to protect both the company and its customers from debit and credit card fraud losses.
What we did After analyzing A&Ls current system, ACI determined that ACI Proactive Risk Manager would not only help
the bank prevent fraud, but it would also detect suspicious, potentially fraudulent behavior.
Impact ACI Proactive Risk Manager allows A&L to prevent and detect potential fraud, in many cases well before
customers become suspicious of a problem. With Proactive Risk Manager, A&L also detects a significant
proportion of all card skimming fraud. Furthermore, Proactive Risk Manager has allowed A&L to save millions
of pounds in potential fraud and benefit from improved efficiency and information management.
Reduce debit card fraud
Situation Canadian Imperial Bank of Commerce (CIBC) is the second largest Canadian financial institution when
measured by assets. CIBC provides products and services to more than 8 million retail banking customers
and 8,000 corporate and investment banking customers. CIBC currently has approximately 4 million
cardholders and 4,600 ATM devices.
Challenge With debit card payments having recently topped cash as Canadians favorite way to pay for purchases, CIBC
wanted to upgrade its existing level of debit card fraud detection to better protect customers and mitigate
risk for the bank.
What we did CIBCs implementation required the creation of online links between BASE24 and ACI Proactive Risk Manager
in order to provide the most effective response to suspicious transaction alerts. CIBCs sophisticated shared
workload environment processes in excess of 100 transactions per second (tps) in issuer transactions alone
and requires the highest possible availability.
Impact CIBC has made consistent progress in enhancing its transaction monitoring capability culminating with the
installation of ACI Proactive Risk Manager. Over time CIBC chose to migrate toward increasingly sophisticated
tools as the operating environment changed. ACI Proactive Risk Manager is exceeding the banks expectations
for fraud savings and accuracy.
The competitive landscape
Capabilities Importance
to customer
ACI Fair Isaac SAS Actimize Norkom Unique silver
bullets
Flexible rules engine H 5 3 1 3 3 SB
Custom model H 5 5 5 0 0
Industry expertise H 3 5 4 5 5
System performance H 5 5 2 3 3
Scalability H 5 5 4 4 4
Implementation H 4 5 1 2 4
Regular updates to the product M 4 2 1 5 4
Integration with existing environment H 4 3 5 3 4
Global services and support H 5 4 5 2 1
Financial strength of company M 5 5 5 4 1
Low cost of ownership M 5 3 3 4 3 S
Enterprise risk capability H 4 2 3 3 3 S
Product flexibility M 5 1 4 3 3 S
Usability M 5 2 4 4 3 S
Integration with other ACI products L 5 1 1 1 1 SB
Off-the-shelf integration with
third-party products
L 4 3 4 3 2
Silver bullets and key strengths
Flexible rules engine, low cost of ownership, enterprise risk capability, product flexibility, usability, integration with other ACI products
Ground rules where we win
When they
Are a current ACI customer, especially if they are a Proactive Risk Manager customer
Want to meet regulatory demands
Are experiencing high fraud losses or a current fraud attack
Have outgrown an existing in-house solution
Want to improve operational risk
Like ACIs risk management product vision
Are interested in neural network technology
Want to improve operational efficiency
Need a phased implementation approach
Require a rapid implementation
Want an affordable system
Ground rules where we lose
When they
Wont entertain using a product solution provided by an outside vendor
Have a better relationship with a competitor in areas of risk
Want a consortium model
Require a quick model implementation
Cant show their return on investment (ROI)
Want an enterprise risk solution that provides anti-money laundering protection
Legend: H=high; M=medium; L=low, Silver bullet (SB): two-point advantage; Strength (S): one-point advantage
0 1 2 3 4 5
As compared to the competition
No
capability
Very
weak
Weak Moderate Strong Exceptionally
strong
Who is the
competition?
Capabilities Capability explained Supporting facts and proof points Where to look for details
Flexible rules engine Users can write rules to
match existing and emerging
fraud trends without the
need for technical resources.
Users can segment and
filter rules to match
operational strategies.
Users can easily modify
existing rules in the system.
Rules can be changed and
deployed instantly to combat
new fraud trends.
Rules can be simple or
complex
Rules are written in SQL against
open database architecture.
The user interface is simplified to
assign rules to users.
The complexity of rules is
based on the capabilities of
the SQL statements.
A U.S. customer identified a fraud
trend at Japanese taxis and wrote a
rule that was immediately launched
to alert the bank of all transactions
at the taxis.
Product summary
Case studies
Customer briefs
Fact sheet
Three Pillars webinar
Custom model By analyzing customers
existing fraud, transactional
and demographic data, ACI
can develop a customized
scoring model specifically
built to reflect the individual
risk profile of each of the
banks customers.
ACI can update a custom
model on a periodic basis
to account for the dynamic
nature of fraud trends.
The model is built using six or more
months of customer data.
Model output scores indicate the
probability of fraud.
Each score is supported by three
reason codes accessible to the
end-user that highlight the
relevant fraudulent activity for
the transaction.
Custom modeling flyer
Custom model white paper
Fact sheet
Product summary
Industry expertise ACI has industry experts in
enterprise fraud.
ACI offers fraud consultancy
services worldwide.
ACI industry experts speak at fraud
forums worldwide.
ACI is an industry leader in
enterprise-wide payments
technology.
Facts and stats
Customer service guide
Product summary
Sales price book
Consultancy flyer
System performance Proactive Risk Manager has
proven capability to process
high volumes of transactions.
One customer processes 15 million
transactions per day.
Proactive Risk Manager is currently
installed at customer sites ranging
in size from tier 1 to tier 5.
Proactive Risk Manager
customer list
Facts and stats
Scalability The flexible nature of
Proactive Risk Manager allows
users from different sizes of
institutions to gain maximum
benefit for their institutions.
customer list
Facts and stats
Implementation Implementation times can
be adjusted to meet
customers needs.
A simple implementation can take as
few as three months.
Customer support guide
Regular updates to the product ACI delivers scheduled
service packs to customers.
ACI user groups can
submit requests for
enhancements and influence
future product direction.
Proactive Risk Manager version
8.0 will have 50 customer-driven
functionality requests built in.
Service packs regularly include
feature and function enhancements.
Product documentation
How do I
show strength?
12 ACI Confidential
Integration with
existing environment
The flexible nature of
allows users to use
industry-standard hardware
and software platforms.
Customers can leverage
existing architecture
and applications.
Proactive Risk Manager operates on
multiple platforms and supports the
latest third-party industry software.
Hardware Software
Requirements
Product summary
Fact sheet
Global services and support ACI provides installation
support and services in
conjunction with standard
ACI support.
ACI has offices in more
than 40 countries around
the globe.
HELP24 offers around-the-
clock support via telephone,
Internet and Web site.
Internal support
Integrated online help
HELP24 support
Product consultancy services
Facts and stats
Financial strength of company ACI has been in business for
more than 30 years.
ACI has more than
800 customers in over
80 countries.
Proactive Risk Manager is used by
more than 125 customers in over
40 countries.
Annual report
Facts and stats
Low cost of ownership ACI uses a licensed
product model that allows
institutions to leverage
existing hardware and
software architecture.
Customers can make changes
to the system (rules, add-ins,
etc.) at no additional cost.
industry-standard platforms.
Flexible architecture, interface and
documentation enable customers to
make changes rapidly.
Product summary
Enterprise risk capability Proactive Risk
Manager provides an
end-to-end, enterprise-wide
fraud detection and risk
management solution.
accepts transactions from
any channel within a retail
or wholesale bank.
More than 20 percent of Proactive
Risk Manager customers use the
enterprise risk solution.
Customers today are using Proactive
Risk Manager for the following
channels: credit, debit, check,
Internet banking, telephone
banking, mobile banking, wire,
brokerage and ACH.
customers range from large to
small, from retailers to retail and
wholesale banks.
Case studies
Customer briefs
Product summary
Fact sheet
Enterprise risk management
(ERM) flyer
ERM webinar
How do I
show strength?
Product flexibility Proactive Risk Manager
allows institutions to
leverage existing hardware
and software architecture.
Customers can make
changes to the system
(rules, add-ins, etc.).
The flexible nature of
Proactive Risk Manager allows
users from different sizes of
institutions to gain maximum
benefit for their institutions.
industry-standard platforms.
Flexible architecture, interface and
documentation enable customers to
make changes rapidly.
Product summary
Usability Users can write rules to
match existing and emerging
fraud trends without the
need for technical resources.
Users can segment and
filter rules to match
operational strategies.
Users can easily modify
existing rules in the system.
Rules can be changed and
deployed instantly to combat
new fraud trends.
Rules can be simple
or complex.
Users can easily navigate
through alerted activity and
customer information.
Rules are written in SQL against
open database architecture.
The user interface is simplified to
assign rules to users.
The complexity of rules is
based on the capabilities of
the SQL statements.
A U.S. customer identified a fraud
trend at Japanese taxis and wrote a
rule that was immediately launched
to alert the bank of all transactions
at the taxis.
Intuitive graphical user interface
(GUI) is easy to use.
Product summary
Case studies
Customer briefs
Fact sheet
Three Pillars webinar
Integration with other
ACI products
Through the use of standard
interfaces, Proactive Risk
Manager provides a major
benefit to customers using
multiple ACI products.
Proactive Risk Manager currently
interfaces with BASE24-eps, the
ACI Money Transfer System and
the ACI Automated Case
Management System.
Product presentations
ACI Payments Framework
Off-the-shelf integration with
third-party products
Through the use of standard
interfaces, Proactive Risk
Manager provides a major
benefit to customers using
third-party products from
ACI partners.
Proactive Risk Manger currently
interfaces with products from SIDE
International, Adeptra and Eunexus.
Product presentations
SIDEWatch flyer
IP Profiling flyer
How do I
show strength?
14 ACI Confidential
In preparing for our meeting today, I tried to think of the questions
I would have if I were sitting on your side of the desk. I thought
you might want to know
What is ACI Proactive Risk Manager for Enterprise Risk and how
can it help you?
What makes ACI unique in the market?
How have we helped other customers?
Are these some of your questions?
Do you have any other questions? Does it make sense to begin our
meeting by answering these questions? Do I have your permission to
do an assessment?
I would like to spend about five minutes answering these questions,
then, with your permission, I would like to ask you some questions to
see if ACI might help you.
What is ACI Proactive Risk Manager for Enterprise Risk and how
can it help you?
ACI offers rules-based, neural network enterprise-wide fraud detection
solution that
Reduces fraud losses significantly and helps minimize overall
operating costs
Monitors all of a financial institutions interaction with its
customers, enabling the institution to better profile each
customers behavior to more accurately detect fraud
Enables users to prevent fraud losses by detecting fraud
during authorization
Consolidates risk management activities into a single system
Assists users in retaining customers by using a behavior-based
fraud detection model that allows institutions to protect all
customers while minimizing customer impact
Protects the users brand and reduces risk to reputation
Provides valuable management information by capturing and
maintaining statistical data on overall business performance
Ensures maximum accuracy of the custom model in detecting new
fraud schemes through customer-controlled model updates
Maximizes analyst productivity, efficiency and performance by way
of easy-to-use Java-based, graphical Microsoft Windows interface
that automates risk operations and case management workflow
What makes ACI stand out in the market place?
With more than 30 years of experience in EFT processing and
transaction security, ACI is the recognized leader in processing
electronic payment transactions.
ACIs global reach includes more than 800 customers in over
80 countries.
ACIs comprehensive payments solutions portfolio includes
wholesale banking, retail banking, fraud management,
e-infrastructure and e-commerce.
ACI offers global support through more than 40 local offices
around the world.
How have we helped other customers?
The National Australia Bank (NAB) needed to improve its fraud
detection system when fraud gangs, primarily from Eastern Europe,
cast their eyes on Australian banking institutions. With the attacks
in Australia, NAB experienced an increase in attempted fraud activity,
via phishing e-mails. NAB understood that a number of approaches
were required if it was going to offer its customers the best possible
security and minimize losses.
NAB discovered strong trends around IP addresses and its Internet
banking accounts that had been compromised. The bank decided to
enhance its counterattack by looking at IP addresses using Eunexus
IP Intelligence. NAB also conducted analyses within ACI Proactive
Risk Manager that accessed data about fraudulent IP addresses within
the Proactive Risk Manager database. The team developed several
techniques to increase detection. These techniques provided a strong
behavior and IP profile for each customer.
NAB can now identify a significant portion of compromised accounts
before funds have been withdrawn, which has helped protect
customers. Using Proactive Risk Manager, NAB can establish an
expected footprint for a customer and therefore identify which
Internet banking logins and transactions dont fit a customers normal
usage profile, helping operators make intelligent decisions when
theyre working through alerts. Using these two simple techniques,
Proactive Risk Manager now has to monitor only 2 percent of Internet
transactions before the rules are applied. From that point forward,
the banks customized Proactive Risk Manager rules scrutinize every
transaction that doesnt meet those criteria. This allows NAB to detect
virtually all Internet banking fraud.
Now, unless you have any questions, I would like to ask you some
questions to see how we might help you. If we agree there is a need
for our services, then I will propose a number of options. If we discover
that we cannot help you at this time, then at least you will know a
little bit more about us and, we hope, keep us in mind should your
needs change in the future.
How should I
start?
Key idea Opening question Measuring today Measuring the future Impact
Examples (Many customers we talk to
believe)
(What do you believe) (In the future) What would the impact
be if you could
Moving from a
silo to an
enterprise-wide
approach
We are working with other banks
on enterprise risk management,
breaking down product silos
to give them a single view
over total customer activity.
Yet the Economist Intelligence
Unit found that 78% of banks
worldwide are still operating
silos. Where are you?
Is your current fraud detection
and risk management solution a
silo or enterprise-wide system?
What are your thoughts about
enterprise risk management?
Do you have plans to
replace your system in
the future? If so, what
are your objectives for
the new system?
Implement a
comprehensive
solution that helps
meet the increasing
need to detect new
fraud schemes and
patterns across the
organization through
an expert rules-based
technology?
Issuer in a new or
emerging market
Fraud is becoming more
complex for example,
with the emergence phishing
were finding that banks
are responding by taking an
enterprise approach to risk
management. We are working
with other banks in your
region to combat issuer fraud,
particularly where cards are a
new concept to users. Where
are you?
What challenges are you facing
in this area?
What are your plans to
combat issuer fraud?
Implement an
enterprise-wide fraud
detection solution
that works in issuer
environments?
Acquirer needs a
fraud solution
You may know ACI from our
BASE24 solution. Did you know
that we also provide a solution
for acquiring fraud? Were also
working with a number of banks
to address ATM skimming. How
are you approaching this type
of fraud?
Are you experiencing fragmented
workflow management? Do
you have the ability to track
production efficiency
What are your plans to
combat acquirer fraud?
Implement a fraud
detection solution
that improves
analyst efficiency
and performance
with easy-to-use
Java-based interfaces?
Financial institution
in a faster payments
area
The industry is moving toward
faster payments, and some banks
see real time fraud detection as
a way to mitigate the associated
risk without impacting the
customer. Whats your thinking
on this?
Does your current system
offer real time fraud detection
and prevention?
Are you planning to
implement a real time
fraud detection and risk
management solution?
Implement an
enterprise-wide,
real time fraud
detection and risk
management solution?
How do I
assess the opportunity?
16 ACI Confidential
Anticipated objection #1 The real customer question Answer and explanation
My in-house solution is
satisfactory.
Why do I need enterprise risk? Would it be appropriate to spend just a couple minutes explaining what
other customers have found?
Points
ACI Proactive Risk Manager provides a consolidated risk management
solution across the enterprise.
With Proactive Risk Manager, the speed with which alerts are received
for review is increased, reducing fraud losses.
Proactive Risk Manager reduces maintenance and staffing costs.
Proactive Risk Manager offers flexibility in managing rules
and workflows.
Regular Proactive Risk Manager updates enable users to maintain a
current, state-of-the-art system.
Consulting and support are available from ACIs highly trained staff.
Proactive Risk Manager is a strategic solution, so when you have new
fraud types or products it is all you need. You do not need to buy
another fraud system
We are going to become
EMV-compliant, so we wont
need a fraud solution.
Why do I need a fraud solution
with EMV?
Would it be appropriate to spend just a couple minutes explaining what
Points
APACS statistics for the U.K. pre- and post-EMV reveal that the fraud
hasnt disappeared; it has simply moved.
I need a consortium model. Why do I need a custom model? Would it be appropriate to spend just a couple minutes explaining what
Points
ACI has performed extensive testing to measure the performance of
consortium models versus custom models and rules. We have found
that the custom and rules approach outperforms the consortium
model in real-world situations.
Writing rules in SQL is too
complex and difficult.
Will I need to hire technical staff
just to write rules?
Points
SQL offers the flexibility to write sophisticated rules that are not
bound by simple parameters.
ACI offers a rule library.
ACI has expert consultants to coach new users.
ACI provides training workshops for every customer project.
What are the
potential objections?
What are the
potential objections?
Were a tier one bank and you
dont seem to have many tier
one banks using Proactive
Risk Manager.
Can you support me? Would it be appropriate to spend just a couple minutes explaining what
Points
ACI has 18 processors around the world using Proactive Risk Manager.
One customer uses Proactive Risk Manager to process 90 million
credit cards
I dont want to store
transactions on my systems.
Why cant I outsource it to a risk
management system vendor?
Points
Although you need to purchase additional hardware, you will have
greater control over the system by storing transactions in-house.
You will also be able to integrate with other systems (e.g.,
nonfinancial transactions) and gain greater flexibility in how you run
the system to respond to emerging and evolving fraud threats.
I can get the same
functionality from an
emerging competitor for a
fraction of the cost.
What differentiates ACI from
its competitors?
Points
ACI is committed to respond to changing fraud trends. More than 55
percent of our employees work in R&D.
ACI provides multichannel, global support 24x7.
Regional and global Proactive Risk Manager user groups provide
ongoing support and share best practices.
My current system already
gives me a low number of
false positives.
Why should I change? Would it be appropriate to spend just a couple minutes explaining what
Points
False positives are just one key metric in measuring
fraud performance.
The point of detection is key in combating fraud.
18 ACI Confidential
How do I
execute?
Steps of the sale ACI Sales ACI Sales Support ACI Services
Identify prospect and key players
X
Make level-one sales call to prequalify X
Needs analysis, sales discovery process, business exploration X
Identify solution X X
Identify customer requirements and build business case (if the
prospect requires assistance)
X
Presentation of identified solution and verification that it fits the
customers needs
X X
Proposal X X
Signed contract X
Optional services packages X X
Ongoing professional services (optional) X X X
Support Customer Management and HELP24 X
ACI Worldwide Company Overview
Every second of every day, more than 800 customers around the world rely on ACI solutions to process payments, manage risk, automate
back-office systems and provide application infrastructure services. More customers use ACI software to manage higher payment volumes, of
greater diversity, across more platforms and geographies than any other provider in our field. Since 1975, ACI has provided software solutions
to the worlds innovators. We welcome the opportunity to do the same for you.
What is a
typical deal
20 ACI Confidential
Pricing Model
The ACI Proactive Risk Manager pricing model is based on transaction
volume. The following is a rough guideline for pricing:
Tier 3 financial institution: US$1 million (software only)
Nonfinancial institution (processor): US$2 million (software only)
Average sales cycle 618 months
.
ACI Services
Project Management and Implementation Services
Global Delivery Process (GDP) and project methodology
Project management and product consulting
Project team (ACI and customer)
Project Scope Meeting (PSM)
Project Scope Document (PSD)
Installation
Training
Product implementation support
Go-live support
Product Support Services (included in maintenance)
Customer management
HELP24 (customer hotline)
Extended Services
Security Optimization Services (SOS)
Education and training
Business consulting services
Technical consulting services
Enhanced Support Program (ESP)
Performance services
Basic system configuration
Workstations: Microsoft Windows
Server: Microsoft Windows
Database: Oracle 10g or SQL Server 2005, DB2 9.1
Scoring engine: IBM System z, IBM System p, Sun Solaris, Microsoft Windows, SUSE Linux
Average pricing
Entry Medium Large
Monthly transaction volume US$10,000 US$20,000 US$50,000
Average cost of hardware &
system software
To be provided by vendor when needed
Average cost of application
software
US$1 million US$2.5 million US$4.5 million
Average cost of services US$75,000 US$125,000 US$225,000
Yearly per seat minimums US$90,000 US$130,000 US160,000
What resources
are available?
Resources
(Who do I call?) Location Name Phone Number E-Mail
General information Send e-mail Lori Morehead +1 402.390.7906 lori.morehead@aciworldwide.com
Channel support Americas Rob Haake +1 402.778.1915 rob.haake@aciworldwide.com
EMEA Michelle Weatherhead +44 1923 812806 michelle.weatherhead@aciworldwide.com
Asia/Pacific Chee-Keong Leo +65 67808387 cheekeong.leo@aciworldwide.com
Where do I find? Title/topic Location/URL
Specific product information Product fact sheet
Product summary
Product solution sheets
Solution/industry flyers
i4/Marketing
Other supporting information
Channel sales presentations
and other localized material
PRM Overview i4/Product
Customer information Customer list
Customer case studies/
testimonials
i4/Marketing

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