How the Financial Services Industry Can Respond to the Regulatory Spotlight
The financial services companies are innovating the whole financial industry, from increasing the speed of services to offering more added value to customers. However, they don’t operate independently of the circumstances that affect traditional financial institutions. In many countries, financial services companies are subject to the same regulations and laws as banks, with more governments updating their regulatory structure to include them. This makes minimising the compliance risks while retaining their innovative nature a hot topic for financial services companies.
Tackling Financial Crimes
Staying away from accusations of financial crimes or being an accessory to them is no joking matter. Such accusations have serious conclusions, usually in the form of huge fines. There are also other sanctions which may lead to the dissolution of the company.
Preventing the funding of terrorism and money laundering operations is one of the major concerns behind these regulations. Being vigilant against such situations is not only for the benefit of the company itself but also a social responsibility.
What are the Challenges?
As financial services companies launches new innovations to resolve complex challenges , so do malefactors. These antagonists evolve with them and create new ways to overcome the financial services companies’ security measures. This is probably why financial service companies turn to technology when it comes to making internal improvements. They rely heavily on technological innovations to eliminate human error and the possibility of humans to become an accessory to such crimes. This is not a vain attempt since technology does offer solutions to these problems and these solutions get better day by day.
How Can Technology Provide The Solution?
Anti-money laundering (AML) and Know Your Customer (KYC) procedures have been key to preventing financial crimes and ensuring regulatory compliance. But today, technological innovation can make these procedures faster and more secure. Many of these procedures are either assisted or completely managed by automated tech solutions. This not only results in higher efficiency but is also effective in eliminating human error.
At Fineksus, a technology and professional services provider for financial companies, we are very aware of the challenges facing financial services companies.
That’s why we don’t only offer AML and KYC solutions — we also provide an integrated approach. Our solutions are powered by artificial intelligence and deliver reliable, secure and cost-effective results that empower compliance teams in their work. Our extremely focused approach also drives us to develop new financial crime detection techniques.
At Fineksus, we don’t see ourselves as a service provider for the financial services industry but instead as a part of it. This keeps us very involved in the challenges of the industry and successful at creating solutions for it. While financial services companies continue to disrupt and innovate the financial industry, we’ll keep providing the technology that enables them to reach new heights without regulatory risk.
Tuncay Coruh, Product Manager