Contributed by Jarret Tham, Head of Compliance
Finance Magnates provides news on Fintech, electronic trading, payments and banking Crypto, and blockchains and technology.
In this edition, Finance Magnates published an article detailing how Regtech solutions can improve and automate anti-money laundering (AML) and know your customer (KYC) by leveraging technologies such as artificial intelligence (AI) and machine learning.
The article briefly explains what AML and KYC are about and how they assist legislations in combating terrorist financing and illegal activities. As technology develops, traditional AML and KYC processes may become inadequate in combating illicit activities. AML and KYC Regtech solutions are able to bridge this gap by introducing products that utilize AI and machine learning to analyse vast amounts of data and parameters to generate report identifying risk profiles or to authenticate the identities of the customer.
Some key advantages of Regtech solutions are:
Improvement in productivity and accuracy through the reduction in human error and allowing the institute to focus resources and personnel on higher risk cases.
Improving risk management by offering real time evaluations and notifications through analysing, uncovering anomalous patterns and assist in financial institutions with implementing mitigation measures.
Cost cutting, reducing overall cost by using automated systems instead utilizing manual reviews that may result in potential consequence of non-compliance
Improved Customer experience where the on-boarding process is tailored to take advantage of technology and ensuring a seamless process that customers would be happy with.
A heavy interest in development of AI in the financial sector can be seen in the launching of AI in Finance challenge by MAS and AI Singapore. This challenge looks to tackle 16 identified problems that plagues the financial sector where all interested participants can submit innovative solutions and would be awarded a grant if successfully shortlisted.
Having vast experience in the payment services sector, CYS Global Remit has expressed our interest in participating in the challenge and have teamed with CYLYNX Pte Ltd to express our ideas of the involvement of AI in Finance. Be sure to be on the lookout for more information! Sources: financemagnates