The CEO of Silent Eight, Martin Markiewicz, participated as a panelist at the UK Government Compliance & Transparency Forum on 20 September 2017 in Singapore.
The forum brings together compliances and fintech leaders and experts from around the globe. After several days of discussion, we can summarize the highlights of the forum in 7 major aspects that were discussed by the panelists and drew a lot of attention.
1. Innovation is absolutely vital
Solutions providers that fail to offer something genuinely new are falling behind. Good brand image by itself can no longer guarantee neither acquirement of new customers nor retention of existing ones. With evolving levels of threat, continuous innovation is the only way to mitigate risk and meet regulatory obligations.
2. Artificial Intelligence in compliance is unavoidable
Criminal networks are only getting smarter and more creative in managing their cash flow. Furthermore, legacy systems that use rule-based programming continue to generate massive amounts of false alerts, and that in turn creates a backlog of investigative workload for analysts and distracts them from looking for actual criminal activity. Therefore, AI is needed to help with the investigative workload and bring analyst productivity to the competitive levels.
3. Regulators are in favor of innovation
Participants applauded the increased involvement of regulatory authorities in Singapore and in the UK in driving and encouraging innovation in compliance, including technologies based on artificial intelligence. This signals growing conviction amongst regulators that AI is an effective way to move forward with compliance.
4. Big brands are no longer leading compliance innovation
The older, established brands sometimes offer outdated solutions that lack innovation and flexibility, and often sell on the merits of brand alone. This is no longer enough for financial institutions that are looking for a modern, effective means of screening that utilize the latest technologies.
5. Setting the right expectations is essential for successful implementation of future tech.
For example – Siri makes a great personal assistant, but would you trust Siri with your life and let it drive you around? It is important to communicate what the technology is designed to achieve and how that adds value to the bank’s established procedures.
6. The vast majority of people that commit financial time never get caught
This means that while the technology is evolving, the criminals that we are trying to catch get away most of the time. This is a clear sign that legacy systems are failing to perform and that revolutionary new systems are urgently needed.
7. Fear of liability remains a serious bottleneck
Decision makers are often too afraid to approve the implementation of new “untested” technologies because they are nervous it might fail and lead to them personally being blamed and facing legal liability – sometimes leading to criminal charges and even imprisonment. Thus, they end up relying on brand names that they are familiar with, often not realizing that they could potentially use higher-performance solutions that cost less time and money to implement.