Future of Business

Intelligence & Analytics in Financial Services

Klaus Felsche

Director, Intent Management & Analytics

Risk, Fraud and Integrity Division

Scope

• Developing advanced analytics to manage risks

in real-time.

• Deploying emerging tools to manage growing

volumes, constrained resources, increasing

complexity and diversity in client bases.

• Encouraging and embedding innovation in

highly effective risk analytics tools.

• Privacy & Security considerations.

Our Challenge

Maintain / enhance Integrity of core

processes in the face of:

• constrained resources;

• growing volumes;

• without degrading client service

standards.

Our Response:

Build on existing strengths (eg Geographic Location & Existing Systems,

10+ years of visa and travel data)

Caseload processing based on risk.

Visa

System

BRIS Advance

Passenger

Processing

Intel

Analytics - Now

Main methodology: predictive models to

identify risk in real time in all DIAC visa,

border and citizenship processing.

• Models built on data available to DIAC

• Above-threshold risk triggers processing

response (ie automatic referral to

alternative processing channel)

Case Study

Border Risk Identification System

This problem, once solved, will be simple.

― Thomas A. Edison

Low Risk

High Risk Arrival

Departure Check-In

Check-In Data

Traveller Risk Scores

Boarding

Airline

Liaison

Officer

1 Second

Border Risk Identification System

Welcome to Australia

The Airport View

• Higher Risk Travellers are pre-identified.

• Much of the ‘noise’ has been eliminated.

• More time to spend on each case.

• More opportunity to look for

new/emerging MOs.

Before BRIS

August-December

2010

With BRIS

August-

December 2011

Monthly referrals to

DIAC

2244 1679

Monthly Refused

Immigration

Clearances

54 60

Business benefits

Data from Sydney Airport.

Referrals and refusals from pre-arrival targeting only.

Average bona fide risk - 4th Quarter 2011

0.34

0.35

0.36

0.37

0.38

0.39

0.4

0.41

39 40 41 42 43 44 45 46 47 48 49 50 51 52

Week of Year

Ris

k S

co

re

Supporting Management & Policy

Plan for

more

duty

staff …

Average Bonafides Risk

How?

Some Constraints • DIAC’s Data:

• Record of entitlements (visas, citizenship)

• Record of decision path (records why decisions were

made)

• Some is (very) sensitive

• Security:

• Critical infrastructure

• Privacy

• Privacy, Migration and Citizenship Acts

• Compliance

• Role-based data access

• Automated logging and access monitoring

• Personnel with access are security cleared

DIAC Processes • Keep analysts away from the data warehouse and

operational systems.

• Provide a secure analytics platform which gets

data feeds from the data warehouse and operational

systems.

• Provide an air-gapped experimental laboratory

platform (isolate production data from any

internet contact).

• Leverage existing security infrastructure where

possible.

• Encrypt where possible.

• Develop strategies to prevent easy deconstruction

of deployed models.

•Close to real-world environment

•Follow/mimic normal business processes

•Limit exposure (range/depth)

•Build Business case

•Confirm design

•Develop business processes

• Take lessons learnt from prototype

• Incorporates design lessons from prototype

• Low cost

• Mimic much of the operational environment

• Measure potential business impacts

• Small cost for failure

• Build business case

• Low Cost

• Minimal Consequence if failure

• Freedom to try innovative concepts

• Requires suitable infrastructure

• Administrative processes must be flexible 1. Lab 2. Test

3. Prototype/

Proof of Concept

4. Production / Deployment

New Capability Development Approach

Our Case Study: BRIS

• Concept ($0): mid 2011

• Lab ($20 000): 2 months

• Test ($50 000): 6 weeks

• Prototype ($400 000): 6 months

• Commence Production Build July 2012

• Complete Full Integration for Border: May 2013

($600 000)

• Prototype for Mobile Version: under way

• Maritime version: in Lab

Questions?

I never did a day’s work in my life. It was all fun.

― Thomas A. Edison