Archetype proprietary technology delivered a fraud model with exceptional predictive power, offering a relative uplift of 31% over the incumbent approach.
Jaywing’s AI modelling platform, Archetype, won the award for Anti-Fraud Solution at the Credit & Collections Technology Awards with Virgin Money. With over 30 successful projects and several award wins for its credit scoring work, Archetype has been transforming Jaywing’s client risk modelling for over 6 years.
The award highlights the success of Jaywing’s proprietary technology in enabling Virgin Money to enhance its fight against financial crime, improving detection processes and driving down fraud losses, at a time when credit and collections companies face business pressure in the form of continued regulatory scrutiny and an ongoing fight against application fraud.
Jaywing’s software creates controlled, explainable neural network models that predict fraud risk more accurately than ever before. The fraud model created for Virgin Money enables the business to detect more fraud within a focused subset of applications, allowing it to increase fraud detection rates whilst reducing fraud processing costs.
The results were astonishing. The predictive power -measured in terms of the Gini co-efficient- was 93%, far exceeding the performance of any individual fraud solution and offering a relative uplift of 31% over the incumbent approach.
This performance will enable Virgin Money to identify nearly 90% of fraud cases by reviewing just 10% of cases, and over two-thirds in the lowest scoring 5%.
The improvement in detection means that a small increase in referral volumes will generate a very significant saving in fraud losses as well as additional savings in third party data costs. The significant ROI that it will deliver is achieved without any new systems or data being implemented – the model can be easily deployed within any modern decision system.
Since this "Anti-Fraud Solution" award, Jaywing's Archetype solution has gone on to win "Best Use of AI in Credit and Collections Solution" in 2023 with Secure Trust Bank, and "Best Customer Engagement Solution" in 2022.
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Nick Martin, Head of Analytics, Virgin Money Consumer Lending, said:
“Virgin has led the way in testing out AI approaches in credit risk, marketing attrition prediction and now fraud. The Archetype fraud model is the best of the lot, giving us an exceptionally strong weapon in the fight against financial crime in the application space. We’re already seeing dramatic results from implementing the Jaywing model, which detects significantly more fraud than our existing fraud detection products, with far fewer false positives.”
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Ben O’Brien, Managing Director at Jaywing, said:
“Leading the charge against financial crime, Virgin Money’s approach to application fraud sets a precedent for transforming fraud processing in the industry. Jaywing’s Archetype fraud modelling has equipped Virgin Money with total confidence through the reliability, stability and advanced protection that the new model provides.”