Refinitiv’s Innovation and the Fight Against Financial Crime Report revealed that ‘97% of respondents believe that technology can significantly help with financial crime prevention’.
- 73% of respondents are struggling to harness technological advancements when embracing innovation in the fight against financial crime.
- 72% of respondents say that they are aware of financial crime taking place within their global operations.
- It is thought that 51% of budget will be allocated across the industry to fight financial crime.
Through a Twitter chat, we wanted to explore more and find out how innovation and technology is helping to #FightFinancialCrime from experts within the field themselves. It revealed that whilst in many cases it is helping, there is more to be done before we can truly fight financial crime.
Q1.
Many experts agreed the obstacles centered around employees fearing change and lacking education.
It is clear that #talents and #diversity (#Junior and #Seniors #profesionnal experience) are important. Moreover, #training your employees is the key to sharpen new #softskills and adopt #innovation. #RefinitivSocial100 #FightFinancialCrime #fintech
— Xavier Gomez (@Xbond49) October 2, 2019
Thank you @SpirosMargaris for sending us your take on Q1. What do you think @Xbond49?#FightFinancialCrime #Fintech pic.twitter.com/DM2CKmDt60
— Risk – Refinitiv (@RiskManagement) October 2, 2019
Not only that, but other experts noted the issue of data quality, unwieldy bureaucracies and old IT systems.
Poor data quality #FightfinancialCrime #RefinitivSocial100
— mettemoo (@Mettemoomoo) October 2, 2019
Legacy IT systems, unwieldy bureaucracies, lack of managerial buy-in, pressure to cut costs.
— Evgen Vorobiov (@vorobyov) October 2, 2019
Q2.
The main response to question 2 was that technology can help in detecting fraud. It was also suggested that it can help to find solutions to Financial Crime by filtering out the noise in adverse media and identifying relevant signals.
Data and tech can help illuminate the problem and solutions – from identifying connections between networks, to helping build risk profiles, to filtering out the noise in adverse media and identifying relevant signals.
— Sneha Shah (@snehasshah) October 2, 2019
#technology facilitates the #detection of #fraud because manual handling is not sufficient to detect sophisticated #crime and #fraud. You need to sharpen your skills about existing #digital solutions #FightFinancialCrime #RefinitivSocial100 #fintech @fintech_matt @oluskayacan pic.twitter.com/A2FIT0MJxI
— Xavier Gomez (@Xbond49) October 2, 2019
Q3.
The answer from the experts for question 3 suggested technology would only help to tackle third-party transparency if combined with accurate data.
Technology only works with accurate data so a combination of both is a winner!
— Nicola Wylie Catlin (@nikkiwylie) October 2, 2019
However, it was also noted that whilst technology would be massive in terms of process efficiency, the key to transparency is data availability and this requires policy makers to take transparency more seriously.
Q4.
Some experts did agree that technology used to help detect financial crime could also enhance CX.
#DigitalIdentity is a great example of where technology that can aid the fight against financial crime can also significantly improve customer experience. DI + CX = happy customers and less illicit funds flow!
— James Mirfin (@jamesmirfin) October 2, 2019
However, Spiros Margaris disagreed! Saying CX would suffer due to the measures required to help fight financial crime effectively.
@SpirosMargaris thinks CX for consumers will suffer due to enhanced cybersecurity. What do you think @Mettemoomoo @Xbond49 ?#FightFinancialCrime #RefintivSocial100 #CX pic.twitter.com/iPXDPHZ0Wz
— Risk – Refinitiv (@RiskManagement) October 2, 2019
Xavier was quick to argue however and explained that it can help with the onboarding process.
Maybe…but it exists a very nice and useful #digital #solutions to onboard #client and facilitate the #CX #Onfido #IDnowGmbH…#FightFinancialCrime #RefinitivSocial100 #fintech #CyberSecurity @kuriharan @oscarjofre @fintech_matt @oluskayacan pic.twitter.com/pDzvYI2GDJ
— Xavier Gomez (@Xbond49) October 2, 2019
Q5.
Our experts felt that the main way innovation can improve the due diligence process is by simplifying it and making it easier to conduct.
Tech and innovation can simplify the due diligence process so you can focus on what really matters—running the business. #FightFinancialCrime #RefinitivSocial100
— mettemoo (@Mettemoomoo) October 2, 2019
Additionally, Xavier argued it helped improve the quality of due diligence.
#Innovation and #technology can drastically improve the number of analyzed #data and so the quality of due diligence. #FightFinancialCrime #RefinitivSocial100 #fintech @helene_wpli @insurtechforum @SpirosMargaris @TheRegDoctor @AlexJimenez @HenriArslanian @SylwiaWolos @AkwyZ pic.twitter.com/oWREg3gSmp
— Xavier Gomez (@Xbond49) October 2, 2019
Q6.
Spiros and Xavier agreed that more education and training are key to better fighting financial crime.
100 % agree. Continuing #education and training are the key to reduce #risks #FightFinancialCrime #RefinitivSocial100 #fintech @OttLegalRebels @HenriArslanian @jaypalter @oluskayacan @fintech_matt
— Xavier Gomez (@Xbond49) October 2, 2019
Not only this, but James Mirfin also suggested that there was a need for firms to work alongside regulators, to ensure that financial crime is tackled.
We have to keep up the dialogue between the regulators, the regulated, law enforcement and technology providers to win this. We will only #fightfinancialcrime with strong collaboration and through taking action!
— James Mirfin (@jamesmirfin) October 2, 2019
Q7.
For our final question, our experts all thought that innovation and technology was having a massive impact on the financial services industry.
Xavier suggested it will contribute to the biggest reduction in headcount across the industry.
I am pretty sure the #innovation, #technology and #ArtificialIntelligence will impact #finance #industry . Finance industry spends $150 billion annually on #tech. For example, Technological efficiencies will result in the biggest reduction in headcount across #banking industry pic.twitter.com/1qp6xRjErG
— Xavier Gomez (@Xbond49) October 2, 2019
Spiros also suggested the industry was being enriched by technology, helping to improve the banking experience.
@SpirosMargaris thinks innovation and technology is enriching the financial industry and that we have a lot more to come! #FightFinancialCrime #FinTech pic.twitter.com/069W2MAmmO
— Risk – Refinitiv (@RiskManagement) October 2, 2019
However, James Mirfin reminded us all that whilst the financial industry is benefiting from innovation and technology, so are the bad actors.
There is an arms race happening. It's not just the financial industry who are deploying innovative technology, unfortunately the bad actors are too, and they are doing so at pace, without the formality of strategy sessions and board reviews. We have to win! #fightfinancialcrime
— James Mirfin (@jamesmirfin) October 2, 2019
Access the Innovation and the Fight Against Financial Crime Report and uncover the importance of data, collaboration and technology to help fight financial crime.
Find out who else in our #RefinitivSocial100 is driving social media conversations around disruptive innovation in the finance sector. Visit our microsite: refinitiv.com/social100
