RegTech Disrupting KYC: Better, Faster, Smarter
Financial Institutions are required to prevent, identify, investigate and report criminal activity, but the process of doing so is obscure, costly and inefficient. With financial crimes being a huge threat to global economy, security and privacy, it’s understandable that regulation is fast developing in complexity and scale, driving the high cost of compliance and proving a challenge to implement, especially for smaller compliance teams.
RegTech is not only closing the gaps left by outdated FinTech solutions, but also promises potential in innovation - here are a few ways RegTech is innovating to offer more user-friendly and cost effective services:
- AI is trained to learn from transactions, quickly cross checking and analysing vast data sources to instantly perform identity and anti-money laundering (AML) checks at on boarding, whilst providing a seamless customer experience.
- Open data has created a more transparent and efficient system providing insights and analytics to understand and predict trends.
- Distributed ledger technologies (DLT) shares asset databases across multiple sites, locations and organisations.
- Block chain significantly improves an institutions ability to adhere to compliance, adopt new regulatory obligations and implement internal audit processes.
Improving the on-boarding process would offer a significant improvement in AML compliance, while blockchain technology can also improve monitoring through increased automation alerts.
The global industry is already seeing a number of exciting disruptions of new banking solutions with the assured security of advanced RegTech solutions.
Speak to us about how Cenza's highly skilled team of KYC Process experts can help your institution reduce operational cost and improve the quality and efficiency of your on-boarding process.