The banking and payments industry is experiencing a revolution driven by new technologies. However, it’s not just financial institutions that are leveraging these advancements; criminals and bad actors are too.
The banking sector, along with other financial institutions, is concurrently facing increasing threats from criminals, terrorists, and sanctions evaders. This, paired with a turbulent geopolitical landscape, highlights the complexity of modern risk management. Since 2022, regulatory bodies have intensified their focus on these issues, mandating rigorous compliance and constant vigilance.
With an abundance of data from customer transactions, financial institutions need more than just information; they require insights. The development of AI and machine learning (ML) has ushered in an era of advanced analytics. By integrating various data sources, banks can gain a three-dimensional view of an entity and better understand associated risks.
However, the human element remains crucial. Even with unlimited budgets, human expertise is needed to interpret and apply data insights. The combination of technology and skilled professionals enables effective risk management. Despite the advancements in AI, financial institutions must also invest in talent to maintain a balanced approach.
Financial crime detection is evolving, focusing on pattern detection. Accurate, up-to-date data is essential. Technology aids organisations in screening and analysing vast amounts of information quickly and effectively. Insights derived from data help analysts make informed decisions and manage risk exposure with confidence.
The integration of AI-based technology and comprehensive data sources provides a 360-degree view essential for combating financial crime. This dual approach allows organisations to detect threats promptly and efficiently, positioning them to make well-informed decisions.
The need for actionable insights is greater than ever. Combining technology with human expertise provides businesses with the tools they need to navigate complex regulatory environments and mitigate risks effectively.
In the modern era of banking and payments, integrating advanced technology with human expertise is essential. This combination equips financial institutions with the insights and tools needed to effectively manage risk and combat financial crime.