THANK YOU FOR SUBSCRIBING
Capitalmarkets CIO Outlook Weekly Brief
Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Capitalmarkets CIO Outlook
FREMONT, CA: With innovations taking hold, such as faster payments, the explosion of readily available data and the constantly changing regulatory landscape, staying ahead of financial crime and compliance risk is now more complicated and expensive than ever. Banks have to manage budgets for compliance without losing sight of primary functions and quality control. By embracing innovative technologies such as Artificial Intelligence and ML to free up time-constrained analysts with more informed and precise decision-making processes, many have made a move into automating time-intensive, rotating tasks such as data collection and sorting through alerts.
Along with banks, various other financial institutions are critically thinking about adopting emerging technologies to tackle the risk of financial crime. Regulators have recently taken a critical look at AML controls, distributing substantial fines to banks that may be missing. And, as the most customer-facing function of financial crime, fraud prevention is yet another zone that benefits from AI and machine learning, as it continues to be challenged by a host of new risks such as P2P payments, new payment rails, and faster payments.
Banks are pushed to innovate faster than they ever imagined as they attack their market share by the challenger fintech firms and providers of the next generation. To leverage emerging technologies, this places an ever-increasing burden on financial crime programs.Both banks and regulators embrace new technologies for combating financial crime, protecting clients, and avoiding reputational risk. As banks persist in being more comfortable progressing many of their efforts to combat economic crime to the cloud, a new paradigm is evolving.
Making sophisticated technology easy for both banks and regulators to use, understand, and explain is something that the industry must work towards, building and conquering the next frontier in the fight against financial crime. But regardless of the road map that the bank is preparing to adopt, having an experienced and diverse team examining both the potential and the pitfalls of emerging technologies is critical to creating a stumbling-free, cost-effective integration of the latest and greatest technology of today.
Read Also
