How to deliver tech-driven AML solutions without failing
Key Takeaways:
Stop relying on legacy systems and manual processes
Do not look for the ‘unicorn solution’ from one vendor; greater collaboration is key
Avoid the siloed approach when looking to implement new programmes that are designed to tackle AML - involve the tech team from the beginning
The UK financial services sector is spending £22,000 every hour fighting fraud, according to recent research by LexisNexis.
In the fight against financial crime and with this much capital at stake, it makes sense to utilise any recent developments in technology and automation. But financial organisations are still having a hard time implementing these technologies and often struggle while trying to deliver new and tech-driven AML solutions.
We recently held a webinar with our Chief Operating Officer, Steve Lamb, Mike Harris of FCC Consulting, and Oli Platt of NayaOne to learn why.
Keeping up with the times
From weekly conversations with financial organisations, Kyckr has seen that most are now in the midst of a long-term digital transformation of their compliance processes. Things are finally moving in the right direction.
"When I joined Kyckr about three and a half years ago, lots of firms still had very manual and paper-based processes. In the last five years, there has been a clear shift toward digital, with big financial institutions and regulated entities starting to look at – and embrace – technology, using it to automate what is currently a consistently manual and costly process," said Steve Lamb, our COO.
But despite this, many firms still rely on their legacy systems and the manual reviews in their AML processes and spreadsheets - sometimes still cutting and pasting data from multiple sources. And while they are committed to improving their AML strategy, they often struggle to keep up with the latest developments, and the delivery of tech-driven solutions has not been unproblematic.
"If we look at a subset of AML, Know Your Customer (KYC) is an excellent example. A recent survey found that three out of four firms rated their level of digital KYC sophistication as poor or mediocre. On a scale from fully manual to fully automated, a quarter scored themselves at four out of 10 or less,” continued Steve.