In a recent presentation alongside the national convention of the Bankers Institute of the Philippines (BAIPHIL), executives from financial services technology provider Fiserv, Inc. shared insights on financial crime trends and how companies can manage risk.
Andrew Davies, vice president of global market strategy for Financial Crime Risk Management at Fiserv, explained that in the digital era of today’s banking landscape, concerns over financial crime are rising along with the adoption of new technologies.
“While it’s important for financial institutions to continue moving forward with digital transformation, they must take into account the associated risks and familiarize themselves with the necessary measures to aid in meeting their regulatory compliance and infrastructure security requirements,” said Davies.
Citing data from a study conducted by the United Nations, Davies revealed that the amount of money laundered through the global financial system annually is up to $3.6 trillion. He also noted that experts estimate cybercrime damage costs will hit $6 trillion annually by 2021.
“Criminals are operating at a much more complex level than ever before and are continually evolving their methods,” explained Davies. ”Putting the necessary processes in place is fundamental to prevent both financial crime and other illegal activity, such as human trafficking and terrorist financing.”
Regulatory compliance is driving innovation in risk management. Davies shared that Regulatory Technology or “RegTech” is a growing new field in the financial services industry that can provide direction toward the development of new technologies and products that are resilient to cyber theft, anti-money laundering, and terrorist financing.
For the industry to keep up with compliance technologies, however, it has to overcome some fundamental challenges of current approaches, including a reliance on rules-based monitoring systems and a dependence on manual investigation and human analysts for decision making.
Financial crime and risk management solutions from Fiserv incorporate modern technologies that employ advanced analytical approaches, robotic process automation for improving alert investigation efficiency, and artificial intelligence that can sift through volumes of unstructured data, analyze risk cases, and identify early signs of potential future issues.
In a world moving faster than ever before, Fiserv helps clients deliver solutions in step with the way people live and work today – financial services at the speed of life. Learn more at fiserv.com.