The realm of Financial Crime Technology (FCT) is an integral component of the continuously evolving RegTech market, and Jason Boud, Chief Executive Officer of RegTech Associates, provides a comprehensive analysis of the key developments in this sector with the support of data from the RegTech Associates Radar platform. As we delve into this area, it is imperative to acknowledge the increasing importance of FCT solutions in the fight against financial crime, fraud, and money laundering in the digital era.
A noteworthy development in this sphere is the emergence of illion, the world’s oldest company to offer a financial crime technology solution. With a history dating back to 1841 and now part of the Dun & Bradstreet Worldwide Network, illion offers greenID, an online verification and Anti-Money Laundering (AML) service that provides real-time customer identity verification. This illustrates the deep-rooted history of FCT solutions, despite the emergence of new offerings in the past two decades.
Despite the proliferation of FCT solutions, the stark reality remains the ineffectiveness of current financial crime prevention measures, as evidenced by the substantial number of fines issued by regulators globally. This concerning trend has prompted industry stakeholders to critically assess the trajectory of financial crime technology in 2023 and speculate on what the near future, particularly 2024, holds.
In this vein, the exponential growth of digital transactions is a significant factor that has heightened the need for robust FCT solutions, given the increase in fraud attempts and consumer complaints. Markets such as India, Brazil, and China have experienced a rapid surge in digital payments, presenting both substantial growth opportunities and equally daunting challenges in fraud detection and prevention.
Amidst these challenges, the industry must address pivotal questions concerning the accurate execution of identity checks and Know Your Customer (KYC) procedures, detection of complex fraud patterns from voluminous data, and staying ahead of evolving criminal activities. Addressing these challenges necessitates a range of innovative FCT solutions tailored to each of these fundamental issues.
For example, companies such as IDVerse (formerly OCR Labs), Fraud.net, and Quantifind are at the forefront of developing solutions in the areas of Identity Verification, Fraud Detection, and Typologies of Criminal Activity, respectively. These innovative platforms harness AI, biometric technology, and dynamic risk typologies to combat financial risk and crime, thereby shaping the future landscape of FCT.
Looking ahead to 2024 and beyond, the industry may witness the consolidation and reduction of the supply of financial crime solutions. Furthermore, the emergence of a new service model integrating technology with human expertise may take centre stage, showcasing the ongoing pursuit of more effective and efficient FCT solutions.
In conclusion, the domain of financial crime technology is a dynamic and constantly evolving landscape that necessitates continuous innovation and adaptation. With Jason Boud spearheading RegTech Associates and the wealth of insightful data available on their Radar platform, the industry is poised for transformative advancements that will shape the future of financial crime technology. To delve deeper into the data, sign up for free today on Radar and stay ahead of the curve in the regtech market.
+ There are no comments
Add yours