Risk Assessment Tool for Efficient Cash Disbursements in Insurance
We offered a risk assessment tool to a finance company, providing wellness-based healthcare services to address the pressing issue of fraudulent and erroneous transactions in their cash disbursement processes. By leveraging advanced AI techniques, we developed a solution that was focused on significantly improving audit accuracy and reducing financial risks.
Key Features
Robust Data Preprocessing
Our solution incorporates robust data cleaning and preprocessing techniques to ensure data quality and consistency. This includes handling missing values, correcting errors, and normalizing data to a suitable format for analysis. By ensuring data quality, we improved the accuracy and reliability of the fraud detection model.
Data Extraction & Feature Engineering
We created relevant features like transaction frequency, time of day, and vendor history that capture patterns and anomalies within the data. By engineering relevant features, we provided the model with valuable information that can help it identify indicators of fraudulent or erroneous activity.
Transaction Anomaly Detection
To identify outliers in transactions indicating fraudulent or erroneous activity, we employed unsupervised learning techniques. Additionally, we used supervised learning models to classify transactions based on risk factors, learning from historical data to identify patterns associated with fraudulent transactions.
Financial Risk Scoring
A comprehensive risk scoring model is developed to assess the likelihood of fraudulent behavior, helping organizations prioritize investigations and allocate resources effectively. This model combines various risk indicators, including transaction volume, vendor history, and anomaly detection scores, to provide a quantitative assessment of the risk associated with each transaction.
Simplified Data Reports
A user-friendly dashboard is created to visualize transactions with risk scores, providing the audit team with clear insights into high-risk areas. This dashboard helps easily identify suspicious transactions, facilitating decision-making, and enabling auditors to act more efficiently and effectively.
Results & Impact
By implementing our AI-powered solution, we successfully addressed the challenges of fraud and error detection in our client’s cash disbursement processes. The solution significantly reduced error rate from 8% to 2%, improved processing time, audit efficiency, and compliance.
The error rate in financial reporting decreased significantly from 8% to 2%, improving compliance and reducing financial risks.
Streamlined processes led to faster requisition and invoice processing, enhancing operational efficiency with 98% accuracy.
Manual audit efforts were significantly reduced, allowing the audit team to focus on high-risk transactions.
Automated anomaly detection lowered operational costs by reducing the need for manual audits.
The solution helped our client enhance compliance with financial regulations by improving audit accuracy and reducing errors.
Our solution was tested and validated on datasets ranging from 1,000 to over 1 million transactions, demonstrating its scalability and ability to handle large volumes of data.
Similar solutions we can build for your business
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