The fast-growing economies in the world are under huge threats. Slovakia, Guyana, Ethiopia, Czech Republic, and many others have a high projected growth rate with respect to their economies.
It is estimated that Guyana will have a projected growth rate of about 16.3% during the period 2018-2021, the fastest growing economy in the world. In all these countries, economic conditions will continue to improve having a rising GDP level as well as foreign exchange.
However, unfortunately, there are several challenges that such economies are facing. These challenges correspond to financial crimes such as money laundering and terrorist financing
Security Challenges for Financial Industries
The Security for financial industry is always prone to severe financial challenges among which the filtration of bad actors from the legitimate financial system has always been a goal
This is the reason that regulatory authorities came up with stringent regulations across the world in which banks and financial institutions need to be vigilant in their processes.
Bad actors in the financial system perform various malevolent activities due to which regulatory authorities have made it an obligation for institutions to perform ‘due diligence’ on the customers.
Financial Technology is Helpful…How?
The world is getting digitised. From the banking industry to healthcare and travel to retail, all industries are taking advantage of technological advancements paving their way for customers dealing. Moreover, they help fight against the bad actors in the system.
Similarly, banks and financial institutions can take into account financial technology and pave the way for the Fin tech industry as well. Financial technology helps fight against the bad actors by authenticating them online just the way banks do. Keeping both technology and streamlined financial services is not a dream now.
Modern technology is capable of dealing with bad actors online. They are able to verify each on boarding customer complying with the KYC (Know Your Customer) and Anti Money Laundering Check (AML) regulations.
The money launderer finds new ways to fool the financial systems. They do so by presenting false documents and identity to conceal the bad money. These instances can be mitigated by employing strong technology that could differentiate between the spoofing elements as well as photoshopped documents.
KYC verification process involves identity verification against documents and some other attributes. Biometric technology is integrated with online banking portals to identify and verify the customers in seconds.
The technology is able to detect the spoofing elements in the picture if any and performs face verification to ensure controlled access over the confidential accounts. This helps mitigate the risks of cyberattacks in a financial system.
Anti-money Laundering Measures
As economies are expanding their scope, businesses need to implement the methods in systems that help them identify each on boarding identity to fight against money launderers.
Anti-money alluring checks are already implemented in the identity verification API integrated with the financial system. That API is powerful enough to screen each customer against updated global watchlists, sanction lists, and databases of Politically Exposed Persons (PEPs).
In this way, customer identification is done. This approach corresponds to AML procedures that financial institutions need to perform to ensure a clean customer base.
KYC Verification Process helps financial businesses to ensure security as well as online user experience. To conclude, the increasing complexity in financial systems requires vigilant measures by financial businesses to deal with bad actors.
Institutions need to comply with regulatory obligations, security issues as well as online customer experience. Financial technology can help businesses achieves all these goals simultaneously.