4. FinTechs drive demand for automated AML
With increasing consumer adoption and subsequent transaction volumes in a competitive FinTech climate, 2019 will see a large number of firms move to automate their AML practices to scale even faster. The motivating factor here is the sheer amount of false positives generated by legacy data and technology. The adverse effects of which are obvious: the greater the number of false positives, the more difficult it is to onboard customers and process payments, and the higher the operational overheads. Added to that, of course, is the increased likelihood of missing genuine money laundering activities amongst so many false alarms. Jan Nowaczyk the Data Protection Officer at Azimo said:
“High-quality data is the driving force of AI and machine learning tools and is the key to effective automation of AML risk management and reduction of false positives numbers. 2019 will be the year where an automated approach to AML will be mission critical if you want your FinTech to succeed.”
– Jan Nowaczyk, Data Protection Officer, Azimo
Banks and investment partners will increasingly expect to see FinTechs working with innovative compliance partners to not only reduce operational costs but also prove that they are catching illicit finance. 2019 will be the year that Artificial Intelligence and machine learning move from buzz terms to key ingredients for success.
Tip: Beat your competitors and get ahead of the crowd by engaging with an AML RegTech provider who can guide you through the process of automating your compliance workflow.