Intra-segment alerts allow you to detect unusual behaviors within the same customer segment by comparing current actions with their own history.
With the new configuration option in the rule engine module, it is now possible to set conditions that measure how a customer or counterparty behaves within their segment, using a single variable. This allows for the generation of intra-segment alerts, making it easier to identify atypical behaviors.
→ Remember that in order to enjoy this functionality, it is necessary to have the AML management system starting from the annual Starter plan and to acquire the AML+ extension.
How to create an intra-segment alert?
To do this, access the AML system and click on the “Configuration” icon (the gear). Then, select the “Rule Engine” option.
Now, you can create the rule.
When creating a rule, choose the category. To configure intra-segment alerts, you must set it as monitoring. Then, assign a custom name for the rule and add a brief description explaining its purpose. In the management system, 'AML - Anti-Money Laundering Risk Management' will be selected by default.
Finally, specify who will be responsible for analyzing this rule, ensuring that it meets the needs of your organization.
Next, in the “Conditions” section, we will configure the intra-segment settings. In the last condition, we include an example of an intra-segment rule that we will explain in more detail.
We review the last condition in the intra-segment value analysis, where a univariate model will always be used.
The available variables are numerical and come from the client table. Only the variables used in the previous segmentation will appear in the list.
To define the condition, we select the operator field. In the comparison field, we have two main options:
- Statistical: This refers to typical behavior, a concept used in statistics to define certain types of conditions. This option is related to a sensitivity factor, which is key to calibrating the sensitivity of the rule. The higher the factor, the lower the sensitivity; and the lower the factor, the higher the sensitivity.
2. Standard formulas: Three formulas have been defined to identify intra-segment value, which will later be adjusted using the K adjustment factor.
How to view the intra-segment alert?
Once the alert is generated, you will be able to view it within the "Alerts" module. You will find it under the name you configured, as an automatic intra-segment alert, since the behavior has deviated from the typical pattern.
In the alert details, you will be able to see the type of alert that was triggered, along with the applied conditions. These conditions will be detailed, allowing you to review when and under which parameters the alert was activated.
Now you can do it! Start creating your intra-segment alerts.
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