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FREMONT, CA: Digitalization of information and innovation in banking technology promote the rapid flow of data and money to and from everywhere in the world. There are many risks and challenges from these enhancements; there are obvious upsides and advantages too. Bad actors use similar tools in the global banking system to launder money to help activities ranging from organized crime to terrorism, and more. This results in increased complexity for banks to invest in anti-money laundering (AML).
Banks profitability is in jeopardy, as complexities of these operations have raised regulatory and reputational risks. New players to the business are starting with more straightforward, next-generation infrastructure solutions that are easier to protect the future on the incumbents and their legacy back-offices. The industry is embracing analytics-powered monitoring of financial crime threats. KYC and transaction monitoring risk signals are created by algorithms and technology to provide the risk professional into the danger and access to more complete sets of information to make a decision.
Data requires to be drawn from a combination of internal and external references to spot the most questionable and dangerous transactions. Institutions are increasingly applying new technologies while incorporating third-party data in conjunction with deep learning and artificial intelligence to help identify suspicious transactions and prevent financial crime. Based on high-speed examination of millions of pages of content in global media, more banks are making use of techniques such as sentiment analysis and relationship mapping.
Data visualization can make data sets and analysis much more understandable for the analysts. Solutions employing machine learning and AI can help cut the cost of Know Your Customer and Customer Due Diligence (CDD) programs. These solutions can also spot new indicators and patterns of behavior linked to money laundering or other non-compliant and suspicious behaviors. Implementing successful solutions using third party data provides banks with more significant benefits. Banking industry leaders now know the importance of building customer trust, which has been damaged by data breaches. Banks should protect customer funds and data and also their brand and reputation. Banks can distinguish themselves from competitors by practicing the most advanced technologies as part of a comprehensive attempt to improve regulatory compliance.