News & Views - Savantor

Simple technology to slash credit card fraud

Monday, 01 August 2005

So, why is UK credit card fraud 25 times worse, relatively, than an Eastern European country?  The answer, like all good ideas, is very simple.

You have to go back to Hungary in the late 1990's when credit card crime was a real problem, around ten times the regional average. Faced with this, OTP Bank, the country's largest retail bank (over 50% market share, and well over 1M credit cards) went to one of their key technology suppliers and asked them for a solution which wouldn't break the bank. Miklos Braun and his team developed a fiendishly simple and effective solution.

The solution, MoneyGUARD, simply notifies cardholders every time their card is used. If it is fraudulent use, the cardholder simply replies to the text and the bank's service centre immediately calls them on their mobile phone and starts to deal with the problem including shutting the card down.

Fraud across the whole card estate dropped by 75% in the first quarter and had dropped by more than 90% by the end of six months. Within a year OTP's fraud was less than one tenth of the UK average. Now it is now around 1/25th of the UK rate and that with a product penetration of around 25%. Amazing, particularly when you consider that the charge for a three year licence and standard installation doesn't even reach six figures.

On top of the notification there are a whole range of added value features for consumers such as access to balance information, foreign exchange rates, etc.

Consumers love it! So much so they all pay for it. On average, on a purchasing power parity basis, the Hungarian consumer pays around £4 per month. 

Now, not only have OTP added literally millions to the bottom line in fraud saving, they have also generated a highly profitable new income stream for themselves, whilst pleasing customers. Is that or is that not a banker's dream?

Now, five years later, this mature and fully proven technology has just become available outside Hungary, so watch this space …

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Market Insights

"Savantor did a good job in helping us understand the dynamics of a key growth area for Trionis. Savantor's ability to listen and their degree of commitment have always impressed me. They have been of great help in providing us important market insights and I would not hesitate to work with them again in future."

Ernst Verbeek, Managing Director - Trionis - Belgium

Acquiring market insight and strategy review

"Savantor brought an independent perspective and valuable insight that enabled Rabobank to ratify options for delivery and future growth and make informed business decisions in support of our target business model. Having used Savantor on a number of strategic projects, we have no hesitation in recommending their services to others."

Evert R Fekkes, SVP Payment & Savings Services - Rabobank - Nederland

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Expert Witness

"After searching extensively for the required industry expert in a complex litigation, Savantor was identified to have the necessary industry knowledge and expertise on a range of complex issues. Savantor provided clear advice and was able to quickly hone in on the key issues, but most importantly, generating pragmatic winnable answers."

Gavin Ingram, General Counsel & VP Strategic Planning - Global Blue - Asia Pacific

Payments Workshop Material

"Savantor helped ACI build a payments onboarding workshop for new technical staff in ACI EMEA. Their extensive experience took our outline and built a great starting presentation of industry facts that we have now customised further into a half day session that is used for all new joiners. Our Americas and APAC regions have also taken the material and customised it for their regions. A great job by Savantor has meant new joiners to ACI hit the ground running."

Richard Sanders, Principal Solution Consultant - ACI - Worldwide EMEA

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Issuer and Acquirer Transformation - Assessment and Mobilisation

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with a diverse team from across the bank and actively contribute. I am pleased to say that Savantor was able to deliver on our needs as well as being good people to do business with."

Lars Bostrom, Head of Cards - Nordea - Scandinavia

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.