Financial Crime World

Data, Automation, Analytics Unite to Combat Financial Crime

In the ever-evolving landscape of financial crime, banks are harnessing the power of data, automation, and analytics to stay ahead of threats.

Enhancing Customer Identification and Verification

By integrating internal and external sources of information, institutions can enhance customer identification and verification, leading to more effective fraud detection and prevention. Artificial intelligence (AI) and machine learning algorithms can analyze aggregated data to produce rapid insights, revealing correlations between credential attacks, account takeovers, and criminal money movements.

Optimized Customer Experience

This integrated approach to fraud risk can also lead to an optimized customer experience, which is critical in shaping customer behavior and business outcomes. By segmenting fraud and security controls according to customer needs, banks can use automation and digitization to enhance the customer journey, fostering digital trust.

  • Convenience, transparency, and control are essential components of digital trust.
  • Banks must weigh these attributes according to customer segments.

Holistic View of Financial Crime

The transformed operating model prioritizes a holistic view of financial crime, emphasizing the importance of independent oversight and challenge through clear duties in the three lines of defense. Banks must integrate business, operations, security, and risk teams for efficient intelligence sharing and collaborative responses to threats.

  • Institutions are redefining organizational structures and roles.
  • Processes, people, data, and governance must be streamlined and converged.

Real-World Examples

Leading banks have already made significant strides in integrating their risk management functions. For example:

  • One US bank has established a holistic “center of excellence” for fraud and cybersecurity, achieving efficiency gains through end-to-end decision making.
  • Another global universal bank has combined all operations related to financial crimes into a single global utility, resulting in a more comprehensive approach.

Conclusion

As the landscape of financial crime continues to evolve, banks must prioritize data-driven approaches to stay ahead of threats. By integrating data, automation, and analytics, institutions can enhance customer identification and verification, optimize the customer experience, and foster digital trust.