Optimizing Financial Services Implementing Pega's Decisioning Capabilities for Fraud Detection

Authors: Kartheek Kalluri

DOI: https://doi.org/10.5281/zenodo.14535401

Short DOI: https://doi.org/g8wjnj

Country: USA

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Abstract: In this research, we investigate the use of Pega's decision making tools to improve fraud detection within the financial sector. While financial fraud continues to become more and more complex and pervasive, new and more sophisticated detection systems are needed. However, many conventional fraud detection techniques often have trouble scaling up to tackle transactions on a high volume, slow processing time, and not being able to adapt to new fraud schemes. This paper analyzes how Pega’s leading-edge AI-based decision-making platform – incorporating real-time analytics, machine learning, and rule-based reasoning – offers greater accuracy in detecting fraud, and increases operational efficiency. To help demonstrate that Pega’s solution bests conventional methods by a historical margin with respect to fraud detection precision and speed, the study employs a hypothetical implementation and comparative evaluation. Specific results are that Pega’s platform significantly lowers false positives, improves detection rates, and real-time analysis is necessary for minimizing fraud-associated losses. Additionally, Pega’s system is scalable so that it can also process large transaction volumes quickly, without loss of performance.Additionally, the research tackles the problems in the implementation of Pega’s decision making system — especially privacy, real time processing and interpretability of models. The paper proposes potential solutions including using blockchain for more security and use of quantum computing for faster processing. The study highlights the promising marriage of Pega's decision making capabilities and emerging technology in where fraud detection systems could go next. At a high level, Pega’s decision-making platform provides a robust, scalable solution for fighting financial fraud that allows financial institutions to both stay ahead of evolving threats while improving operating efficiency.

Keywords: Fraud detection, financial services, machine learning, real time analytics, data privacy, blockchain integration, pega decisioning

Paper Id: 231865

Published On: 2022-07-04

Published In: Volume 10, Issue 4, July-August 2022

Cite This: Optimizing Financial Services Implementing Pega's Decisioning Capabilities for Fraud Detection - Kartheek Kalluri - IJIRMPS Volume 10, Issue 4, July-August 2022. DOI 10.5281/zenodo.14535401

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