Securing the financial future
In today's rapidly evolving geopolitical landscape, the banking sector faces an unprecedented increase in the risk of money laundering and financial crime. As the first line of defence against these threats, banks must confront the harsh reality that their existing KYC (Know Your Customer) and AML (Anti-Money Laundering) processes are being tested like never before. The heightened risk environment necessitates an urgent call to action. Now is the time to invest in innovative technology and develop a fit-for-purpose operating model. To reinforce defences to ensure they stay ahead of emerging threats as well as be a pioneer for further essential business growth.
Too often are customers being turned away due to limitations in the banks’ operating model or cost to service being at breaking point. The opportunity lies in leveraging AI (Artificial Intelligence), RPA (Robotics Process Automation), and other transformative technologies to revolutionise KYC and AML operations. Moreover, data interoperability will enable seamless customer onboarding with minimal interaction, providing a superior customer experience.
Authors
Securing the financial future
The current geopolitical climate has created an unprecedented risk landscape for financial institutions. Escalating geopolitical tensions and economic sanctions have heightened the potential for money laundering and financial crime. Banks, as the first line of defence, must address these challenges head-on to safeguard the financial system. The Financial Action Task Force (FATF) are regularly monitoring for deficiencies in banks’ AML and CTF (counter-terrorism financing) measures. With FATFs grey list regularly updated, Banks need to be agile, and reactive, to ensure they undertake a higher level of due diligence on their customers at speed.
With growing uncertainty and instability likely to continue into 2025, customers will expect banks to stay proactive and ensure seamless service and compliance, avoiding disruptions due to regulatory issues.
Three key elements to the operating model that must be part of the investment to maximise the potential of the technologies:
An agile operating model,
An integrated approach, and
Continuous improvement
The challenges of implementation, including integration complexities, training, are significant but manageable. The long-term gains in efficiency, compliance, customer satisfaction, and risk management far outweigh these initial hurdles. Banks that invest in these transformative solutions will not only protect their assets and reputation but also position themselves as leaders in the financial industry, driving innovation and growth in an increasingly competitive market. Now is the time to act decisively and strategically to stay ahead of emerging threats and seize new opportunities.
To discover more or talk to us about anything you've read here please don't hesitate to get in touch.
Further Articles
