10 Best Financial Risk Management Software in 2023

What Is Financial Risk Management Software?

Financial risk management solutions safeguard an organization’s finances by identifying threats to cash flow and revenue while helping to mitigate them. These tools encompass various functions, such as transaction approvals, chargeback disputes, compliance, and customer onboarding.

They cater to businesses involved in real-money transactions and often address specific needs in finance and banking, like underwriting, credit scoring, payment approvals, and fraud prevention.

Key Features of Financial Risk Management Software

There is really only one way to fight transaction fraud: by acquiring more knowledge about your customers. But what you can do with it varies based on the kind of features you have access to. The most important include:

• Custom rules: As risk is an ever-evolving threat, you want to be able to quickly update or edit your risk rules without the need to go through developers.
  
• Risk scoring: Static rules and flags have their place, but more sophisticated risk managers want to be able to set thresholds for what is considered low, medium or high-risk.
  
• AML tools: The ability to manage both fincrime and meet compliance requirements from the same dashboard is a great advantage.
  
• Machine learning suggestion: If you are struggling to identify risk patterns in your large volumes of data, an AI or machine learning system can help. 

The 10 Best Financial Risk Management Software

Comparison Table of Financial Risk Management Tools

	SEON	ArkOwl	Emailage	Ekata	TruValidate	Cybersource	ThreatMetrix
Pricing model	Pay per API call	Pay per API call	Pay per check	Pay per API call	Pay per API call	Tier-based	Pay per check
Transparent pricing	Yes	x	x	x	x	x	Yes
Free integration	Yes	x	x	Yes	x	x	x
Free trial	Yes	Yes	x	Yes	x	x	x
No integration batch trial	Yes	Yes	x	Yes	x	x	x
ISO 27001 certified	Yes	x	x	x	x	Yes	x
Social and web lookup	90+	7+	0	0	0	0	0

How to Choose the Best Financial Risk Management Software

The risk identification and fraud risk management landscape is fast evolving. Legacy giants continue to grow and acquire each other. Meanwhile, younger startups develop innovative solutions and target specific niche markets. Choosing the best solution depends on your business needs and priorities.

At SEON, we are dedicated to creating the ultimate fraud monitoring tools. Not just to reduce chargebacks but also to combat bonus abuse and multi accounting, and help with KYC processes and AML regulations.

Our goal was always to develop risk management software that was flexible, powerful, and transparent enough to fit any industry and meet any challenges for risk managers head-on. We certainly find our clients are more than satisfied with what we’ve built so far, and we hope you’ll give our products a try too.

Integration Type

Financial risk management software will be deployed in-house or online depending on your regulatory requirements. The former is more expensive but gives you more control over data security. The latter is more flexible, as they are essentially sold under the SaaS model. You connect your own business data via API. They include:

• Data enrichment: These solutions let you aggregate more info based on a single point, such as an email address or phone number. They are ideal for manual reviews or for managers who just need extra insights. Some calculate a risk score; others deliver in raw form.
  
• End-to-end platforms: These provide extra data and rules to calculate a risk score more efficiently. This gives you much more control and flexibility over mitigating risk. The most sophisticated platforms use machine learning (ML) to help you discover new risk rules automatically.

Note that most financial institutions layer multiple solutions, for instance one dedicated to AML, another to KYC, and one to anti-fraud.

Pricing Models & Hidden Costs

While all fraud companies operate under the software as a service (SaaS) model, you can also roughly group them based on how they charge:

• Chargeback guarantee: The provider will charge a percentage of the amount it processes and offer to cover the fees in case a chargeback request slips through the net.
• API or check-based: You pay a micro fee every time the software checks an action. 

Chargeback guarantee models seem great because your business won’t have to deal with disputes any longer, but the vendor has a strong incentive to block more payments. This often results in more false positives, which could actually damage your bottom line in the long run. On the other hand, for API or check-based calls, you only pay for what you use.

You also need to consider how long it takes to integrate and deploy, the learning curve (which could result in several false positives and negatives at first), and whether there is unlimited – and free – customer support.

FAQs