Data Trends & Insights

Enhance service uptime and conversion rates for payment services with AI-powered anomaly detection

Thursday, Mar 14, 20244 min read
Emil Bring

As fintechs rapidly evolve, the complexity of payment ecosystems makes it challenging for companies to uphold seamless payment services. The intricate interplay between banks, merchants, customers, and diverse payment methods across various markets complicates the task of protecting critical business metrics like service uptime and conversion rate.

Additionally, battling fraud and following strict data regulations further increase the difficulty and importance of ensuring the financial integrity of your business.

This blog post will explore four ways Validio's AI-powered anomaly detection can uncover sneaky issues lurking deep in your data segments, helping your business maintain uninterrupted payment services and satisfied customers.

TABLE OF CONTENTS

  • 1: Ensure service uptime at scale with ML-based segmentation
  • 2: Stop critical issues in-real-time
  • 3: Boost conversion rates with deep monitoring of business events
  • 4: Strengthen fraud detection
  • Conclusion
  • 1. Ensure service uptime at scale with ML-based segmentation

    Challenge:

    Payment companies face immense pressure to sustain uninterrupted services within a vast and intricate data landscape, dealing with large amounts of sensitive data and complex data sources. Many payment providers handle millions of transactions every month, and in addition to the many customer datapoints included for each transaction, the providers can enrich the data with additional datapoints to optimize analysis and product performance.

    So, the sheer volume and complexity of the data quickly lead to an unmanageable number of individual segments where anomalies can arise, increasing the risk of revenue loss, dissatisfied merchants, and reputational damage.

    Validio's solution:

    Validio's automated anomaly detection uses machine learning (ML) to identify critical outliers deeply embedded within individual data segments. Our algorithms dynamically adapt to trends and seasonality patterns in your data, uncovering issues that could gradually erode key metrics over time. Validio’s field-level lineage also provides a method for quick and easy root cause analysis and issue resolution.

    Validio's algorithms are uniquely trained on each segment of your data, continuously adapting to trends and seasonality.

    2. Stop critical issues in real-time and understand their root cause

    Challenge:

    Real-time data accuracy is pivotal for the seamless operation of payment companies. Delays or inaccuracies must be stopped as early as possible to avoid disrupting critical processes and affecting customer satisfaction.

    Validio's solution:

    Validio quickly identifies subtle but impactful anomalies in individual segments of your data, and provides detailed analysis to locate their root cause and upstream dependencies. This lets users know what caused an issue, its potential downstream impact, and how to solve it quickly.

    With Validio, you can track incidents, manage their severity level, and assign ownership—making it easy to collaborate and solve issues across different teams in your organization.

    Validio lets you track, manage, and collaborate to solve incidents across your entire organization.

    3. Boost conversion rates with deep monitoring of business events

    Challenge:

    In the payments domain, frictionless user transactions are imperative for maintaining high conversion rates. Even minor disruptions in the authentication flow can cause users to drop off, resulting in reduced conversion rates, lost revenue, and dissatisfied customers.

    Validio's solution:

    Validio uses real-time monitoring and ML to actively validate user transactions and all their subsegments, identifying any unexpected patterns that can impact your conversion and completion rates. As soon as something is off in any part of your payment flow, for any customer, Validio will promptly alert you. Coupled with field-level lineage for root cause analysis, you can quickly fix bad data anywhere it appears in your environment.

    Field-level lineage makes it easy to analyze root causes and quickly resolve incidents.

    4. Strengthen fraud detection

    Challenge:

    Payment companies handle sensitive financial data, making them prime targets for fraudulent activities and potential data breaches. In fact, fraudulent activities resulted in a loss of 4% of online revenue in 2022 alone.

    The high volume of transactions also puts immense pressure on your data processing capabilities. Add to that the complexity of data sources, including various subsegments where issues may arise, and distinguishing between legitimate and fraudulent activities becomes a daunting task. This increases the risk of financial losses, damage to reputation, and erosion of customer trust.

    Validio's Solution:

    With Validio's anomaly detection, you can promptly identify real-time deviations in patterns or behaviors that may indicate fraudulent activities. Our engine efficiently processes hundreds of millions of rows of data per minute, enabling immediate detection of incidents even within large transaction volumes. When an incident is detected, our field-level lineage allows you to trace anomalous datapoints from start to finish and promptly respond to fraud alerts.

    Conclusion

    In summary, Validio's AI-powered anomaly detection offers a comprehensive solution to enhance service uptime and conversion rates for payment services. By leveraging machine learning algorithms and real-time monitoring, Validio enables businesses to efficiently reveal anomalies hidden in deep data segments, preventing disruptions and ensuring seamless operations.

    The ability to track incidents, assess their root cause and impact, and collaborate across teams significantly reduces the time it takes to resolve issues. Additionally, Validio's fraud detection capabilities and robust data governance features provide additional layers of protection, safeguarding businesses from financial losses and reputational damage.

    With Validio, payment companies can significantly improve their overall performance, including increased customer value, satisfaction and reduced risk of churn, by preventing data issues from reaching customers.

    Looking to improve your payment service metrics?