HIGH LEVEL OF SANCTIONS THAT MAKE YOU THINK TWICE!
Fighting against fraudulent activities is the number one priority for banking institutions. The sentences and penalties have become a good deterrent to deploy anti-fraud procedures to avoid them. Many banks have already paid due to a lack of sufficient coercive internal process.
Today money laundering represents approximately 2000 billion USD or 2,5% of the world’s GPD. The main challenge of a preventive action plan is to define in even more detail the customer. Know Your Customer is the new buzz word. It is also a European directive seriously implemented considering the risks involved, but that triggers significant handling costs.
For example, when BNP Paribas announced their third quarter results in 2015 they revealed a 7,3% increase of management cost within the operational departments, mainly due to significant recruitments of personnel they made to face the consequent obligations.
Banking institutions have several options. Either they manage it with additional staff on their own, either they take advantage of technologies that can make it more efficient. Claims and counter claims proliferate about how to reinforce regulatory compliance: recruit massively, explore new big data solutions… without knowing precisely the value generated, while in the meantime these alternatives need to bring costs savings.
In certain ways, we can even consider that there is no better opportunity than explosion of the FinRegs in a context of economic transformation. Regulatory changes in the payment and credit market opens the way to new entrants and the banks also have to accommodate with increasing customer experience expectations.
Five minutes is the maximum time you have to create a new compliant account
Integrating more or less of the FinReg technologies is inevitable. Our open innovation lab dedicated a season to imagine a disruptive way of managing the compliance 2.0.