The practice of data analytics for fraud detection in sri lankan finance companies

Abstract

This study aims to assess the use of Data analytics for fraud detection of Finance companies in Sri Lanka. Finance institutions spreading their branches over multiple areas by providing more functionality to its customers beyond the existing traditions. Providing Savings and fixed deposit facilities, Gold loan facilities, online functioning facilities, Mobile-based payment platforms, and other electronic payments, etc. All of these new avenues are shifting the Finance companies from the traditionally viewed brick and mortar service companies to technology companies with finance license. The ever-increasing changing landscape of this digitalization has also started generating multiple data from multiple sources across the sector leading to enormous volumes of data and the demand and capabilities of handling such data are ever-increasing. The availability of data has opened a new window for the organizations to use these data in a much more meaningful way to explore new opportunities in the business environment through proactive means. Hence it is more challenging to generate value-added and accurate information for organizations' decision-making purposes and there is a high probability to occur the frauds. In such situation, the study is the purpose to examine the Data analytics against the fraud detection of Finance companies in Sri Lanka by the source of information gathered from the Internal Auditors of the particular finance companies.