Speaking about the recent innovations , Steve Elliot , LexisNexis Risk Solutions explains , “ Tech-enabled big data and analytics tools can help businesses transform the detection of financial crime and shift their focus towards prevention rather than detection .
“ Good quality data alone can significantly transform a firm ’ s AML process effectiveness by reducing data silos and providing a far clearer picture of the risk a potential customer presents , reducing false positives and associated remediation tasks in the process , which as this report highlights , accounts for a further fifth of firms ’ AML costs .”
Elliot also believes that an over-reliance on people is expensive and unsustainable in the long term . However , he also points out that the answer isn ’ t to reduce human resource , rather , it ’ s to employ technology to do the repetitive tasks that can then free up people ’ s valuable knowledge to be deployed where it ’ s most effective , such as “ applying a robust and regulator-approved risk-based approach that will really make a difference to the effectiveness of AML activities .”
Cramp agrees , but says It ’ s difficult to single out one particular technology because financial services is undergoing such a rapid transformation on the back of multiple trends . For example , the acceleration of digital transformation projects on the back of the pandemic , competition from fintechs and the opportunities offered by Open Banking .
“ Open Banking in particular is fuelled entirely by the liberalisation and utilisation of data . Without data architecture and analysis , the products and services it enables would simply not function .
74 November 2021