SOURCE: Chordiant Software, Inc.

November 14, 2006 09:00 ET

Chordiant Software Streamlines Fraud Investigation and Recovery for Card Issuers

New Enterprise Solution Delivers Fraud Investigation Efficiency and Higher Recovery

CUPERTINO, CA and LAS VEGAS, NV -- (MARKET WIRE) -- November 14, 2006 -- Chordiant Software, Inc. (NASDAQ: CHRD), the leading provider of Customer Experience (Cx™) software and services, today announced the release of an innovative software application that empowers financial institutions to automate fraud investigations and recovery processes while strengthening compliance with association rules. Chordiant Fraud Manager, created using the innovative Chordiant Mesh™ collaborative development model, increases the efficiency of investigation representatives and minimizes the impact of financial losses by helping card issuers determine the best course of action in fraud cases.

Chordiant Fraud Manager evaluates data in industry-standard fraud detection systems to build cases and determine appropriate next actions. The application recommends the appropriate disposition for each transaction based on industry best practices, specific card-issuer processes, the value of the customer, and association rules. Each transaction can be processed as a chargeback, write-off, or customer-liable. Chordiant Fraud Manager provides case management, a unified workbench, step-by-step guidance, and integration with enterprise back-office and third-party systems to automate back-end processing.

"With fraud attempts reaching record levels, banks continue to see mounting losses from fraud coming at them from all directions," says Henry Ijams, managing director of PayStream Advisors, a Charlotte, North Carolina based financial business process consulting and research firm. "Chordiant is directly attacking the 'front-office' part of this problem, enabling card issuers with agent-based desktop decisioning and automated business process management that takes the guesswork out of investigations and recovery. As card transaction volumes and attendant fraud escalate beyond their capacity, it's a solution that we believe major card issuers truly need."

Chordiant Fraud Manager was developed using Chordiant Mesh. This open, collaborative development model enables Chordiant to work in tandem with customers and partners to develop, customize, and deploy software solutions such as Fraud Manager more rapidly and efficiently than previously possible.

With Chordiant Fraud Manager, global banks and card issuers can significantly reduce fraud losses by improving the productivity of representatives, eliminating exception fees, increasing talk-offs, and lowering write-off thresholds. The Chordiant solution achieves this by enabling customers to:

--  Maximize funds recovered with multiple options for each transaction,
    including full and partial customer-liable disposition, chargeback and
    write-off, as well as compliance rule filings;
--  Automatically apply MasterCard and Visa association rules for each
    fraud reason code to prevent invalid chargeback and exception fees;
--  Reduce investigation time and increase compliance with fraud cases
    automatically prepared, packaged and prioritized based on risk type;
--  Increase productivity and proficiency with dynamic "next best action"
    recommendations and company-defined, interactive scripts that adjust based
    on the association rules;
--  Eliminate manual tasks with automated back-office processing to close
    and open accounts, block further transactions, move valid transactions to a
    new account, issue new cards, generate affidavits and other required
    documentation, notify the association, and route the case to the
    appropriate queue;
--  Increase efficiency with one-click access from the fraud recovery
    workbench to enterprise and third-party applications, such as credit
    verification, phone logs, and address verification systems.
"Once an organization determines fraud has taken place, Chordiant Fraud Manager provides the most effective way to recover dollars before taking a loss," said Bill Brown, head of card product marketing for Chordiant Software. "This is a powerful solution for ensuring the consistent application of the most effective approach in the recovery of fraud dollars."

About Chordiant Software, Inc.

Chordiant helps leading global brands such as HSBC, Barclay's, CIBC and Capital One deliver the best possible customer experience. Unlike traditional business applications, Chordiant Customer Experience (Cx) solutions blend insight with predictive desktop decisioning to uniquely understand the customer's behavior. This deeper understanding cultivates a lasting, one-to-one relationship that aligns the most appropriate value proposition to each consumer. With Chordiant Cx solutions, customer loyalty, operational productivity and profitability reach new levels of return. For more information, visit Chordiant at

Safe Harbor Statement

This news release includes "forward-looking statements" that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Forward-looking statements in this release are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," "would," "guidance," "projects" and similar expressions which are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Chordiant to differ materially from those indicated by these forward-looking statements. There can be no assurance that Chordiant Fraud Manager will be adopted by customers. Other risks relating to Chordiant's products are detailed under "Risk Factors" in Chordiant's Annual Report on Form 10-K for the fiscal year ended September 30, 2005, and Chordiant's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2006, each as filed with the Securities and Exchange Commission. These filings are available on a Web site maintained by the Securities and Exchange Commission at Chordiant does not undertake an obligation to update forward-looking or other statements in this release.

Chordiant and the Chordiant logo are registered trademarks of Chordiant Software, Inc. The Customer Experience Company and Cx are trademarks of Chordiant Software, Inc. All other trademarks and registered trademarks are the properties of their respective owners.

Contact Information

  • Chordiant Media Relations Contact
    Erica Burns
    PAN Communications
    (978) 474-1900
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    Chordiant Investor Relations Contact
    Steve Polcyn
    Senior Director of Investor Relations
    Chordiant Software, Inc.
    (408) 517-6282
    Email Contact