Financial institutions can achieve quick wins in the TM parts of their compliance process – without waiting for larger IT projects to be delivered.
Delaying optimizations to transaction monitoring systems can be a costly mistake. Historically, it may have seemed sensible to time upgrades around other changes in the IT environment, to minimize complexity and avoid wasting investment as systems are changed. This approach is typically known as “getting the house in order before optimizing”. But there are compelling reasons to optimize TM frameworks sooner rather than later – even during such large IT change processes.
Money launderers and other financial criminals don’t wait for IT projects to be finished. They are constantly active and adopting more sophisticated techniques, which means that financial institutions relying on non-optimized systems face an ever-growing risk of regulatory breaches. Getting it wrong, while waiting for IT projects, can have significant financial, legal and reputational consequences.
The good news is that it’s now possible to optimize TM environments and leverage this for both the existing (old) environments, as well as the renewed TM system. With automated machine learning (AutoML), rulesets and detection models can be optimized much faster than most financial institutions might expect. Quick wins can be achieved in just a few weeks and with minimal disruption.
Indeed, AI-optimized AutoML solutions can even be implemented alongside existing TM systems, completely avoiding the need to wait for a major overhaul.
An additional advantage in optimizing the TM environment first or alongside IT changes is that it creates strategic technical and compliance capacity. Immediate compliance and efficiency gains can be achieved by reducing the overhead associated with traditional frameworks, such as handling the high volume of alerts and increasing detection ratios, as well as answering regulatory pressure for sound model risk management practices to be implemented. Such as above and below the line testing (ATL/BTL).
At Sygno, our clients generate their enhanced rulesets and models based on the behavior of their good customers. Our automated model generation solution can significantly optimize your TM environment, reducing the usual time and complexity.
With such solutions, there’s no need to wait a year or even more for the delivery of a large IT project. A “smaller” enhancement can achieve huge gains quickly, saving costs, freeing up resources, and reducing risks. And the optimization can easily be transported to the renewed TM environment or automatically re-generated in the new situation.
Getting started with optimizing your TM
Get in touch to find out how you can stop waiting and start optimizing your TM environment today.
Get in touch to find out how you can optimize your compliance processes.