The asset-servicing sector of financial institution's financial institutions is one of the most difficult and underserved areas of operation. A true anomaly is one that is outside the normal or familiar. Anomalies may be caused by incompetence, maliciousness or system errors.Anomalies are critical for the financial services industry. They may indicate illegal activities like fraud, identity theft or network intrusion. Account takeovers and money laundering can lead to undesirable outcomes for both the individual and the institution.There are many ways to deal with the problem of anomaly detection.Financial institutions can enhance their operational teams by detecting outlier data or anomalies based on historical data trends and patterns.The challenge of detecting anomaliesFor a variety reasons, anomaly detection is a challenging problem. In recent years, financial services have seen an increase of data volume and complexity. A large focus has been placed upon the quality of data to make it a tool for measuring the health of institutions.Anomaly detection is more difficult because it requires the prediction of something new or not known before. This is made more difficult by the constant increase in data and the fact it is changing constantly.Machine learning - LeveragingThere are many ways to deal with the problem of anomaly detection.
