Connecting the Dots &
It can be difficult, in this age of enormous amounts of unstructured data coming from all manner of sources, to see how we can possibly extract meaningful and actionable information. With the trillions of banking transactions that take place daily, how can a single institution realistically connect the dots and find money laundering, terrorist financing, or other financial crimes? And how can the institution be prepared for future threats and even more data?
Using AI to Help Connect the Dots Now
This is precisely the area in which automation and artificial intelligence shines, if resourced and implemented strategically.
First, AI-based systems need to learn how to do their jobs. This means that the actions of financial crimes investigators need to be recorded and used to train these systems. In the course of training, the AI can surface investigative and analytic patterns, such as which data sources are most used or what types of queries return the most valuable information, and start performing these tasks in the background, pushing the results to the investigators – as opposed to investigators needing to seek the results out themselves.
The other primary added benefit with an AI-based system is the sheer amount of data that such a system can handle: it can mine petabytes of data in mere seconds or minutes, pushing only the most interesting to the human. This technology is available now, and the capability to learn means that it can grow and adjust to changing financial crime threats.
Future Technologies for Combating Financial Crimes
There are also very interesting ideas coming from the field of information security. Cryptocurrencies are perhaps the most well-known application in the financial field, with the technological advances made by combining cryptographic authentication with distributed ledgers to create global currencies. These concepts have other applications as well, in and beyond financial crimes.
A distributed ledger, which is a decentralized database replicated across multiple sites, can form the basis of data sharing between financial institutions globally – in particular, for financial crimes detection, sharing transactional data allows early detection of new threat patterns; for Know Your Customer and sanctions screening, sharing customer data provides a unique data resource to far more accurately assess account holders and transactions.
However, as customer privacy and business confidentiality are major concerns, certain aspects of data need to be kept secret; this is where concepts from cryptography, in particular differential privacy, come into play. Differential privacy keeps certain parts of data elements secret, while still allowing underlying patterns to show through.
While these technologies are still under development, the potential is clear, and not just in financial crimes. In the future, this type of data sharing capability could expand to something like interbank monetary transactions, with massive improvements in speed, reliability, and customer satisfaction as well as significantly lower costs than what is currently available. That's why more and more financial institutions are making investments in cutting-edge technology.
The future is coming fast -- and the best way to stay competitive is to implement the technology that is available now and strategically resource future development. At Clovis Technologies, we've developed a platform that can find your threats of today and use that data to find the threats of tomorrow. Contact us today to find out more about how we can partner with you to find your best path forward!