Technologies For Fighting Financial Crime

The digitization of the world has become the stepping stone of all kinds of online fraud, no matter how big or how small. Institutions of all kinds are trying their best to develop or make use of existing technologies that can help them fight all kinds of financial crime. Financial crime identification is as crucial as employing technologies for fighting financial crime.

Technologies for fighting financial crime are being combined with human intelligence to create a powerful technology that helps in huge team compliance. To prevent financial crime, businesses and other institutions that use KYC/AML processing need to use technologies for fighting financial crime.

Rise of Financial Crime

According to a global survey, it was revealed that more than 3,000 managers who deal with compliance-related operations had come across multiple financial crimes during their operations.

Even with the rise of technology, financial crime remains prevalent. The loss from some specific financial crime can cause a lot of money. This is why technologies for financial crime prevention are crucial.

During the survey including banks, financial technology businesses, and other institutions, the thing that came to light was that financial crime had multiple disadvantages. Several organizations lost their corporate value, lost investor confidence, and some businesses lost their brand reputations and supplier relationships as well. 

All the businesses could have saved themselves from losses if they had the right financial crime identification methods in place. To prevent financial crime, institutions need to make use of the right technologies for fighting financial crime. As of right now, there is a clear and urgent requirement for organizations to employ innovative technologies to tackle the problem of financial crime with a new approach.

Technologies For Fighting Financial Crime

1. Due Diligence Checks

Huge organizations with a large number of due diligence processes spend around 4 percent of annual turnover on third-party due diligence checks. Regardless of using third-party organizations for due diligence checks, almost half of the new relationships with businesses don’t have the needed due diligence checks.

This huge gap in the compliance process like KYC/AML can allow financial crimes to go undetected until a huge loss has been incurred by businesses. The ideal way to prevent financial crime is by adding more heads to the due diligence process. Adding more budget to the due diligence process can save organizations to suffer heavy losses. 

2. Constantly Adopting New Technologies

A lot of organizations are already making their way towards newer technologies, the main purpose of the technologies is to enhance the compliance process and prevent financial crimes. 

A survey conducted by businesses showed that most businesses are embracing cloud base data and technologies for financial crime prevention. Also, around 50% of people are using API-based document verification technologies, others are using artificial intelligence and machine learning-based technologies.

In institutions where the technology isn’t applied, there can be huge losses. There are even organizations that showed no interest in employing newer technologies.

3. Faster Onboarding Process

Technologies for fighting financial crime can enhance multiple parts of the business. Making use of newer technologies can offer so many benefits. The intelligent use of technology can:

  • Speed up onboarding process
  • Reduce strain on existing resources
  • Reduce the risk of human error
  • Allow organizations to onboard more customers
  • Can decrease the onboarding times and shorter time for revenue generation. 

Almost all the top technologies for document verification or financial crime prevention are cost-effective. Apart from being cost-effective, they can enhance the overall client experience.

4. Trusted Human Experience

Businesses that use technology to prevent financial crime are more likely to find success while completing onboarding checks. After realizing this, organizations are trying to pour more funds into investing in newer technologies.

In upcoming years, the expenses on third-party due diligence checks are expected to grow by up to 50%.

5. DIRO’s Online Document Verification Technology

Using DIRO, institutions can easily verify any person or information from any bank, utility company, or government. DIRO guarantees that you can trust each PDF and use them as an original document in KYC compliance and all kinds of other processes.

DIRO is one of the best technologies for fighting financial crime. Using them, you can reduce the risks of financial crime in your business operations. Businesses who are not afraid of adopting newer technologies for financial crime prevention, can try DIRO for free or even get a demo on how it works.