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Temenos Launches Embedded AI Capabilities to Help Banks Move Faster, Stay in Control, and Create Better Experiences

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Temenos Launches Embedded AI Capabilities to Help Banks Move Faster, Stay in Control, and Create Better Experiences

WHY THIS MATTERS: The biggest challenge for financial institutions integrating intelligence today is not adoption, but accountable deployment. This launch from Temenos is significant because it marks a clear pivot away from the ‘bolt-on’ AI approach, embedding solutions like Copilots and AI Agents directly into the transactional heart of the bank. The industry is grappling with a profound need for robust AI governance, especially as tools move into decision-making roles in lending, operations, and compliance. By focusing intelligence on critical internal personas—from branch managers to core developers—and extending financial crime controls to the accelerating challenge of instant payments, the company is directly addressing the nexus of regulatory pressure and operational necessity. This isn’t innovation for innovation’s sake; it is delivering the governed, auditable intelligence necessary for banks to scale services and manage risk simultaneously in a structural shift toward automation. For global financial leaders, this news signals that the era of responsible, regulated AI is no longer a future roadmap item, but a non-negotiable requirement for platform trus

Temenos (SIX: TEMN), a global leader in banking technology, today announced new AI-powered product capabilities launching at Temenos Community Forum (TCF) 2026. The new releases include Temenos AI Agents, Copilots and Conversational Studio embedded across Temenos’ Core and Digital Banking products, as well as its Financial Crime Mitigation (FCM) solution.

These launches demonstrate Temenos’ continued execution against the product pillar of its AI strategy, which focuses on embedding intelligence into the trusted platform banks rely on to run their most critical operations.

The new AI capabilities unveiled at TCF 2026 include:

 

  • Conversational Studio for Digital, a natural–language environment for building end–to–end digital banking journeys.
  • Temenos Copilot for Workbench, helping developers build, plan and execute custom platform extensions using AI Agents.
  • Temenos Copilot for Core – Branch Manager & Branch Officer personas, extending conversational support to branch officers and managers. 

 

  • Temenos FCM AI Agent for Instant Payments, extending financial crime controls to real–time payment flows.

Barb Morgan, Chief Product and Technology Officer at Temenos, commented: “Banks do not need AI added on top of critical systems. They need intelligence built into the products and workflows they already trust. Rather than introducing a separate AI layer, we are embedding AI responsibly, so banks can automate operations, scale services and innovate safely without compromising reliability or regulatory obligations.”

Sam Abadir, Research Director, Risk, Financial Crime, and Compliance for IDC added: “In banking, the critical question is no longer whether AI can be applied, but whether it can be governed across data lineage, model behavior, and operational controls. Platforms like those Temenos has introduced that embed intelligence directly into core banking workflows, with clear audit trails and human oversight built in, reflect the architecture production deployments actually require.”

Conversational interfaces are transforming how users interact with Temenos systems by enabling natural-language interaction with the platform. This improves productivity, reduces operational friction, and makes complex banking functionality accessible to a broader set of users. In 2025, Temenos launched Temenos Copilot for Core, where users engage directly with the system using natural language to accelerate decision-making. 

AI Agents further increase operational capacity, reduce friction and risk, and help banks scale efficiently while maintaining auditability and human oversight. A Tier 1 bank using the Temenos FCM AI Agent, also launched in 2025, is now processing hundreds of thousands of sanctions screening cases and automating more than twenty percent of alerts, allowing teams to focus on higher-complexity work.

Conversational Studio provides the governed, build environments where banks can design and deploy new experiences through natural language, accelerating innovation while maintaining control. 

FF NEWS TAKE: This move clearly addresses a core strategic vulnerability facing banks: scaling AI capabilities while maintaining ironclad core banking modernization standards. Yes, this moves the needle by shifting the industry dialogue from whether AI is useful to how it is governed at the transaction level. The key is the emphasis on auditability and responsible embedding, which is what regulators demand. Watch for competing vendors to rapidly adopt a similar ’embedded’ strategy, particularly around developer tooling and conversational interfaces for back-office staff. Success will be measured by deployment speed and demonstrable gains in operational efficiency.

 

WEX and Extend Partner to Embed Virtual Card Payments Inside SAP Concur Invoice

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WEX and Extend Partner to Embed Virtual Card Payments Inside SAP Concur Invoice

WEX Inc., a global leader in intelligent payment solutions, has entered a new partnership with fintech platform Extend. The partnership enables WEX corporate card customers to generate and settle vendor payments using virtual cards directly inside Concur Invoice, fully automating the process without requiring users to leave the SAP Concur platform.

The integration specifically targets the traditionally manual, check-driven Accounts Payable (AP) process by transforming it into a fully integrated, card-based workflow.

Automating the AP lifecycle

Under the new system, when an invoice is received, Concur Invoice automatically generates a single-use virtual card linked directly to the customer’s registered WEX commercial account. This virtual card is automatically populated with a unique 16-digit number, a designated spend limit, a validity date, and an invoice reference. From there, the platform can authorize, remit, and seamlessly reconcile the payment end-to-end.

By utilizing this embedded payment experience, WEX customers gain the ability to:

  • Settle invoices with single-use virtual cards generated from their existing WEX commercial accounts.

  • Control payment amounts and timing using strict per-invoice virtual card parameters.

  • Pay suppliers faster, thereby improving cash flow and days payable outstanding.

  • Automate the reconciliation process and gain complete visibility into payment delivery.

  • Eliminate paper checks, mitigating associated fraud risks and reducing administrative burdens.

  • Earn available card rebates on their vendor transactions.

Executive insights
Carlos Carriedo, chief operating officer, Americas payments & mobility at WEX

Carlos Carriedo, chief operating officer, Americas payments & mobility at WEX, highlighted the strategic value of the new integration.

“WEX is committed to providing our customers with intelligence-led solutions that transform Accounts Payable from a back-office function into a strategic driver of working capital,” Carriedo stated. “By partnering with Extend to embed virtual card payments inside Concur Invoice, we are delivering infrastructure that offers granular control over every transaction, all without disrupting how they already operate.”

For Extend, an established SAP Concur partner, the deal reinforces its position as a trusted connective layer between legacy payment infrastructure and modern enterprise software.

Andrew Jamison, CEO and co-founder of Extend, noted that the partnership reflects a broader momentum across the B2B payments industry.

“Extend has built the infrastructure that lets card issuers and payment platforms deploy new capabilities inside the software their customers already use, without ripping and replacing what’s already working,” Jamison explained. “As customer expectations rapidly evolve, so does the race to deliver more connected payment workflows—Extend is excited to be the partner that makes it possible.”

By overlaying modern fintech infrastructure onto existing corporate card programs, WEX and Extend are actively replacing vulnerable payment credentials with single-use virtual tokens. This digital architecture ultimately helps organizations turn their AP departments from traditional cost centers into scalable, value-generating assets.

Is $115K BTC Price Realistic?

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Is $115K BTC Price Realistic?

Key takeaways:

  • Half of the $6 billion in Bitcoin options open interest is tied to long-shot strategies used for hedging and neutral price strategies.
  • The 9% put (sell) options premium hints that professional traders are worried about a potential Bitcoin price drop.

Bitcoin (BTC) bulls have high hopes for the year-end options expiry on Dec. 25, which features $6 billion at stake. The 33% price gain since the $60,130 yearly low on Feb. 6 have played a major role in bringing back bullish expectations. However, the huge amount of call (buy) options targeting $115,000 and higher for Dec. 25 raises questions about whether bulls are overconfident.

December Bitcoin call (buy) options open interest at Deribit, BTC. Source: Deribit

Deribit exchange holds a 92% market share in December’s Bitcoin options open interest at $5.5 billion. However, the actual value at expiry will be much lower. Many of these instruments were placed on unlikely outcomes as a hedge or for neutral strategies that do not require large price moves to remain profitable.

Bitcoin call options dominate, but both sides have unrealistic bets

Put (sell) options are underrepresented by 56% on Deribit compared to call options. Crypto traders are known for being bullish, so the put-to-call ratio is usually skewed. Still, the $1.85 billion in open interest in call options targeting $115,000 and higher is significant. This setup makes it worth comparing how optimistic call options are versus the puts.

December Bitcoin put (sell) options open interest at Deribit, BTC. Source: Deribit

The high volume of put options targeting $55,000 and lower is also notable, totaling $1 billion in open interest. This means the percentage of bets considered improbable is similar for both sides, sitting at roughly 50% of the open interest in each segment. If bulls are seen as overly optimistic, then the bears appear equally extreme in their pessimism.

December Bitcoin options pricing at Deribit on May 7. Source: Deribit

Beyond serving as a counterbalance in strategies with different expiry dates, a call option at $120,000 offers cheap exposure to extreme upside events. Based on Deribit prices on May 7, a buyer pays $2,202 to secure unlimited upside exposure to the equivalent of one full Bitcoin at a price of $120,000 or higher on Dec. 25.

The options skew metric provides a clearer view of professional traders’ comfort levels regarding both upside and downside price risks.

Related: Bitcoin holds $81K amid flat derivatives markets–Is rally sustainable?

Bitcoin 6-month options delta skew (put-call) at Deribit: Source: Laevitas

Put options are trading at a 9% premium relative to equivalent calls, signaling moderate fear of downside price movements in Bitcoin. Under neutral conditions, the skew indicator should range between -6% and +6%. According to derivatives metrics, investor optimism was not substantially impacted by the rally to $80,000.

Ultimately, the $1.85 billion in December call options should not be interpreted as a sign of excessive bullish confidence.

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

US Treasury ‘Privately Demanded’ Binance Comply with Monitoring Deal: Report

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US Treasury ‘Privately Demanded’ Binance Comply with Monitoring Deal: Report

Update (May 7 at 9:47 PM UTC): This article has been updated to include a statement from Binance.

The US Department of the Treasury reportedly demanded that Binance follow a monitoring program put in place by a 2023 deal between authorities and the cryptocurrency exchange, following reports that the company facilitated $1 billion to entities tied to Iran.

According to a Thursday report by The Information, the Treasury Department “privately demanded” that Binance be in compliance with a monitoring program to which it had agreed after reaching a deal with US authorities in 2023. The deal, which included a $4.3 billion settlement with Treasury and the US Department of Justice, required Binance to comply with a three-year monitoring program overseen by government officials. 

The reported letter from Treasury followed reports that Binance fired individuals responsible for telling the exchange’s executives that $1 billion flowed through the platform to entities tied to Iran. A group of senators followed, urging Treasury Secretary Scott Bessent to report on Binance’s adherence to the 2023 settlement.

“Binance is committed to cooperating with the independent monitor and our ongoing collaboration with relevant agencies,” a spokesperson for the exchange told Cointelegraph in response to the report. The spokesperson said:

“We welcome constructive feedback from the Treasury and view this oversight as an important part of continuously strengthening our compliance and anti-money laundering controls. We are providing the monitor with full cooperation and transparency.”

Binance’s ties to the Trump administration have come under scrutiny since a United Arab Emirates-based entity invested $2 billion in the crypto exchange using the USD1 stablecoin issued by World Liberty Financial, the company co-founded by US President Donald Trump and his sons. Trump also pardoned former Binance CEO Changpeng Zhao in October 2025.

Related: US authorities freeze $344M in crypto linked to Iran

Zhao pleaded guilty to one felony charge related to failure to maintain an anti-money laundering regime at Binance as part of the 2023 settlement.

Changpeng Zhao speaking at Consensus on Thursday. Source: Cointelegraph

Zhao rules out leading another crypto company

The Information’s report coincided with Zhao’s appearance at the Consensus conference in Miami on Thursday.

The former CEO said he had been “trying to avoid [the] US” but floated the idea of revitalizing Binance.US to give users access to global liquidity. He also dismissed the idea of being in a leadership role at a crypto company again, having resigned as Binance CEO in November 2023.

“I don’t think I’ve got the stamina to run another startup, to lead another company,” said Zhao. “I’m a one-trick pony. I’m okay with that level. I’m done.”

Magazine: Guide to the top and emerging global crypto hubs: Mid-2026

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Tether executive warns the 2026 elections could have a ‘seismic impact’ on the crypto industry

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Tether executive warns the 2026 elections could have a ‘seismic impact’ on the crypto industry

Miami — Tether.io Head of Government Affairs Jesse Spiro said the crypto industry sees the 2026 U.S. midterm elections as a critical test for whether Washington’s recent embrace of digital assets will endure.

“What we’ve seen is a lot of good immersion and progress over the last year,” Spiro said during a panel discussion at the Consensus Miami 2026 conference, pointing to the passage of the GENIUS Act and progress on market structure legislation. “But as with anything else, the apple cart can always get upset.”

Spiro warned that the elections could have a “seismic impact” on the industry’s trajectory, even as crypto advocacy groups prepare to deploy major political spending and grassroots organizing.

“Crypto should not be partisan,” Spiro said. “Best case is that we have members that are supportive of the industry, supportive of the ecosystem, supportive of good policy.”

Other panelists argued the industry’s political influence is only growing ahead of November.

Colin McLaren, Head of Government Relations at the Solana Policy Institute, said crypto’s political efforts are now focused on “durability,” ensuring that the future of Congress continues advancing industry priorities, including tax reform and protections for developers.

“You can make the down payment on a house, but you’ve got to keep paying the mortgage,” McLaren said, referring to crypto’s campaign spending efforts after the industry poured hundreds of millions into the 2024 election cycle.

Mason Lynaugh, Executive Director of Stand With Crypto, said the group’s nearly 3 million members are increasingly viewing elections as “an accountability moment.”

“They’re going to show up and support the people that supported them,” Lynaugh said, adding that crypto voters are highly motivated and could sway close races. “If something is decided by 4,000 votes, 5,000 votes … all we have to do is turn them out.”

Read more: Crypto is at bottom of U.S. voters’ priorities heading into elections, CoinDesk survey shows

AI agents and large corporates will lead the next stablecoin boom

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AI agents and large corporates will lead the next stablecoin boom

Large corporations looking to modernize payments and AI agents making autonomous transactions are emerging as the two biggest growth drivers for stablecoins, executives of Bridge and Deus X Capital said Thursday at Consensus 2026 in Miami.

Lindsey Einhaus — who leads strategy and operations at stablecoin infrastructure firm Bridge, which was acquired by Stripe for $1.1 billion — said the next two years will likely bring a wave of institutional stablecoin adoption, especially for cross-border payments and internal treasury operations.

“Large institutions are looking to utilize stablecoins to manage cross-border flows and really collapse a lot of their account management into stablecoins,” Einhaus said.

She pointed to payment-focused blockchains like Tempo, backed by Stripe and Paradigm, as key enablers for broader adoption. Existing blockchains historically lacked features common in traditional payments systems, such as refunds, chargebacks and private transactions, she argued.

The next growth area may come from AI-powered micropayments.

According to Einhaus, blockchain-based stablecoin rails could finally make tiny internet payments economically viable by removing costly intermediaries and reducing transaction fees. Historically, micropayments failed because transaction costs often exceeded the value being transferred, while crypto payments introduced price volatility that discouraged spending.

“With stablecoin-native blockchains, you’re going to dramatically reduce transaction costs,” she said.

Tim Grant, CEO of Deus X Capital, said agentic payments — autonomous AI systems transacting with each other — may become one of the strongest crypto use cases yet, partly because consumers intuitively understand the need for machines to move money online.

“We’re underestimating the agentic payment boom that’s about to happen,” Grant said.

At the same time, he cautioned that the infrastructure remains fragmented across multiple blockchains and wallets, while regulation around autonomous financial activity is still evolving.

Grant struck a more cautious tone overall on the pace of stablecoin adoption. While he was optimistic in the long term, he argued that the industry still faces hurdles around regulation, consumer onboarding and institutional coordination.

Still, he acknowledged that institutional sentiment has shifted meaningfully as regulators become more supportive.

“Before, you had to push institutions to pay attention,” Grant said. “Now they’re pulling.”

Pakistan’s HBL Goes Live on Temenos Core Banking

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Pakistan’s HBL Goes Live on Temenos Core Banking

WHY THIS MATTERS: The successful initial deployment of a cloud-native core banking platform at Habib Bank Limited (HBL) is more than a regional news story; it is a profound demonstration of how large, established financial institutions in emerging markets are decisively tackling core banking modernization. The sheer scale of this program, set to handle 40 million accounts and process 20 million daily transactions, validates the capacity of modern, composable technology to manage immense complexity and volume. For the wider industry, this confirms the viability of a hybrid-cloud strategy for mission-critical systems. Banks globally, particularly those navigating complex regulatory and geographic landscapes, should view this as a clear blueprint for de-risking large-scale transformation. This deployment is the foundation HBL needs to deliver rapid product agility, enabling them to counter market challengers and accelerate their time-to-market for innovative, customer-facing services today.

Temenos (SIX: TEMN), a global leader in banking technology, today announced that Habib Bank Limited (HBL), a leading financial institution in Pakistan, has successfully gone live with Temenos Core Banking in one of the region’s most ambitious modernization programs. 

The initial go-live supports Conventional and Islamic Banking and includes a first phase migration of customer accounts from 200 branches in Pakistan to the Temenos platform. The milestone is a major step in HBL’s strategy to deliver agility, resilience, and scalability in its operations.

Once fully rolled out, this landmark program will cover the Bank’s branch network and more than 40 million accounts, processing approximately 20 million transactions per day.

Delivered by Systems Limited, utilizing the Country Model Bank accelerator, this implementation brings Temenos Core and Temenos Data Hub to a hybrid-cloud architecture powered by Red Hat OpenShift. The modern platform accelerates product launches, boosts processing speed and efficiency, and delivers real-time data for analytics and regulatory compliance.

Muhammad Nassir Salim, President & CEO – HBL, commented: “The deployment of Temenos’ core banking is a pivotal moment in HBL’s technology transformation. It equips us to drive innovation, product agility and scalable efficiency. This is a large and complex project, and Temenos with Systems Limited have shown exceptional focus towards making this initiative successful.”

William Moroney, Chief Revenue Officer at Temenos, said: “By replacing legacy systems with Temenos’ cloud-native core, HBL gains a highly robust and scalable platform capable of supporting the largest and most complex banking operations. This modernization empowers HBL to deliver innovative services to tens of millions of customers with speed, security, and efficiency. We are proud to partner with HBL on this strategic transformation.”  

Ammara Masood, GM Global BFS, Systems Limited, added: “This successful go-live reflects our ability to deliver complex, large-scale multi-country banking modernization programs. Working alongside Temenos, we ensured an implementation that meets HBL’s strategic objectives and lays a strong foundation for future growth and long-term success.”

FF NEWS TAKE: This go-live is a significant needle-mover, providing an undeniable proof point for large-scale core banking modernization in the dynamic Asia-Pacific region. The immediate focus shifts from deployment risk to innovation yield. We expect HBL to rapidly utilize its new cloud-native capabilities to launch highly localized, real-time products for its vast customer base and leverage its new data infrastructure to enhance personalized services, setting a new competitive benchmark for the region.

 

Bitcoin Slips Below $80K As Spot ETF Inflows Top $1B

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Bitcoin Slips Below $80K As Spot ETF Inflows Top $1B

Bitcoin (BTC) price dropped to $79,800 on Thursday after being rejected at a key dynamic resistance level. The pullback occurred despite the weekly spot Bitcoin exchange-traded fund (ETF) inflows surging past $1 billion for the first time since January, but technical data suggests the correction may be short-lived. 

Bearish divergences point to where BTC price may go

Bitcoin’s dip below $80,000 came amid a bearish divergence in the relative strength index (RSI) on the one-hour and four-hour charts. A bearish divergence occurs when BTC forms higher highs while the RSI weakens across lower timeframes, signaling fading buying momentum during a rally.

BTC/USDT, four-hour chart. Source: Cointelegraph/TradingView

A hold above the weekly open at $78,500 could stabilize the short-term price action. The key technical support range remains between $76,000 and $78,000, where the daily fair value gap (FVG) aligns with Bitcoin’s 200-day exponential moving average (EMA). If the correction continues, BTC could retest the FVG zone before attempting another rebound above its recent high at $82,800.

A fair value gap marks an area where a sharp price movement previously occurred with limited trading activity, leaving an imbalance that often becomes a liquidity zone during retracements.

Crypto trader Jelle said the “200-day MA/EMA cluster” was acting as resistance, while also identifying $78,000 as the first major support area. According to Jelle, a 200-day moving average retest could allow Bitcoin to retest higher price targets.

Meanwhile, crypto trader Killa XBT identified the $76,300 to $74,700 range as a deeper support zone if selling pressure continues. The trader pointed to the weekly open near $78,500 as the main short-term level that bulls are attempting to defend. 

BTC one-day chart analysis by Killa. Source: X

Related: Bitcoin analysts say this level must break for BTC price to confirm bottom

Can spot ETF inflows offset price weakness?

Spot Bitcoin ETF demand strengthened sharply this week. Net inflows reached $1.05 billion, marking the strongest weekly intake since the third week of January. A positive close on Friday would confirm the largest weekly ETF inflow return in nearly four months.

Spot BTC ETF net inflows. Source: SoSoValue

Meanwhile, Swissblock data shows that the Bitcoin Risk Index has reset to near zero, while ETF net flows turned positive again at roughly 3,000 BTC. Historically, elevated risk readings aligned with the ETF outflows and heavier selling pressure across the market. 

Risk index and BTC ETF net flows. Source: Swissblock/X

The resets into the low-risk zone often coincided with renewed accumulation near the major support clusters. The analysis added, 

“That synchronization is still in place. Even when the Risk Index ticked slightly higher last week, ETF selling appeared briefly, but accumulation quickly resumed. That tells us ETF demand is absorbing selling pressure. This remains a flow-driven breakout.”

Related: Bitcoin market dominance moves above 61%: Will altcoins follow?

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

Coinbax wins $20,000 PitchFest prize at Consensus Miami for stablecoin compliance

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Coinbax wins $20,000 PitchFest prize at Consensus Miami for stablecoin compliance

MIAMI – Coinbax won the $20,000 grand prize at Consensus Miami’s PitchFest after pitching a system designed to help banks and financial firms manage compliance for stablecoin payments.

The company, founded by former Jack Henry executive Peter Glyman, builds programmable escrow infrastructure that adds controls to wallet-to-wallet crypto transactions. The software is meant to reduce the risks financial institutions face when moving funds onchain.

“Banks want to use stablecoins for payments, but they need to get their compliance people comfortable with the idea of moving money onchain,” Glyman said during his presentation.

He described a future where “wallet addresses [are] associated with every bank account,” with transactions moving between banks, fintech firms and self-custody wallets. In that environment, he argued, compliance checks need to happen directly onchain rather than only through traditional banking intermediaries.

Coinbax uses smart contracts to hold funds in escrow while third-party services verify identity, sanctions screening and transaction risk. Funds settle only after conditions are met.

“We provide a trust layer,” Glyman said. “We provide programmable escrow that adds the control layer to these payments.”

The startup launched in October, closed a seed round in December and is already live on Base mainnet, according to Glyman. He said the company is working with banks, custody firms and wallet providers on pilot programs.

Second place went to Tashi, a decentralized infrastructure project focused on coordinating and managing AI systems across distributed networks.

Fraud is surging across consumer lending as 93% of lenders report credit-loss impact

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Fraud is surging across consumer lending as 93% of lenders report credit-loss impact

New Celent research finds synthetic identity fraud, application stacking, and bust-out fraud are outpacing what any one lender can detect alone

A new industry report from Celent, commissioned by Zest AI, reveals that fraud has moved from an operational cost to a direct contributor to credit losses—one that lenders are finding increasingly difficult to detect and combat on their own. A survey of 115 U.S. financial institutions found that 93% of lenders say fraud contributes to their credit losses, and 82% report fraud losses increased in 2026 compared to the year prior. The findings point to an industry that is not just losing ground to fraud, but doing so in ways that demand a fundamentally different response.

Fraud exploits the gaps between lenders

Sixty-one percent of lenders identified synthetic identity fraud as the fastest-growing fraud type in 2026, alongside bust-out fraud (56%), and application stacking (55%). What these fraud types have in common is that they are engineered to go undetected within the boundaries of a single institution. A fraudster applying for loans at multiple lenders at once is invisible to each of them individually. A carefully constructed synthetic identity clears standard checks.

“Fraud has evolved from a contained risk into a systemic threat that is cutting directly into lender profitability,” said Craig Focardi, Principal Analyst at Celent. “What makes this moment different is the nature of the fraud types that are driving losses. Synthetic identities, bust-out fraud, and application stacking are not opportunistic acts. They are organized, cross-institutional attacks, and no single lender has the full picture on their own. The industry needs a fundamentally different approach to detection and intelligence sharing if it wants to get ahead of this problem.”

Fighting a networked problem requires a networked response

Catching today’s fraud requires seeing beyond your own portfolio, and no lender can do that without the right data, models, and shared intelligence. Seventy-five percent of lenders are increasing fraud technology spending this year, and 70% are adding staff to fight it, yet fewer than one-third currently use AI/ML fraud models, alternative data signals, or consortium-based intelligence. Those are the tools built to catch what traditional controls miss, and the report makes it clear that closing this gap is where the industry’s focus needs to go.

  • Broad support for data sharing, but low participation: 73% of lenders agree that fraud data-sharing consortiums benefit the industry as a whole, yet only 34% currently participate in one—a gap that reveals belief in the model far outpaces adoption.
  • A large share of the market is waiting for the right option: Another 46% say they are interested or would participate if the right consortium existed, including 25% who would join a cross-lender fraud signal consortium today, and 21% who are still evaluating the benefits of fraud data sharing.
  • The tools lenders have are not keeping up: 64% of lenders say their fraud IT does not keep up with new fraud methods, signaling incremental investment in existing tools is not enough.

“These findings reflect a broader industry reality: the cost of fighting fraud is rising, and many institutions are struggling to keep pace with increasingly sophisticated attacks,” said Mike de Vere, CEO of Zest AI. “Fraudsters are operating across institutions, and lenders are largely still fighting back within the walls of their own portfolio. The answer for lenders is shared intelligence that makes cross-institutional fraud visible before it becomes a loss, and that is exactly where we are focused.”

Zest AI’s Fraud Detection helps lenders identify first-party and behavioral fraud at scale. It captures more than 50% of malicious intent, surfaces over 40% more first-party behavioral fraud with minimal manual review, and keeps more than 80% of consumer loan applications auto-decisioned, so lenders do not have to choose between speed and safety.

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