It is estimated that financial criminals will always remain three steps ahead. As new technologies emerge in the financial services industry, so does the opportunity for criminals to utilise them to fund FinCrime activities. This amounts to growing pressure for banks and financial institutions to constantly adapt and improve their systems and anti-money laundering initiatives.
Tuning and optimisation plays a big part in that. Below, we take a look at the reasons why it should be an ongoing process.
The need for tuning and optimisation
As with any system, it is important to keep updating and adjusting its settings from time to time. Even the most effective Anti-Money Laundering models can become worn out and inefficient without regular tuning. Implementing change can help with optimisation, keeping your technology aligned to latest regulatory requirements.
Improve Risk Coverage
Tuning and optimisation helps to identify any areas of risk before they become problematic and will increase the accuracy of financial risk detection. Automatic detection of suspicious alerts through automated systems, allows for a faster response time to escalate high risk cases to compliance. The way these systems are kept effective is by tuning and optimising them.
A high level of poor quality alerts can be costly for banks and financial institutions to go through and discount. This can be a very time consuming task to manually review. Regular tuning and optimisation of your systems will ensure they are running efficiently and effectively, reducing the risk of multiple false positive alerts being generated. This enables analysts to allocate more time dealing with true positives, where the risk sits.
Boost in Productivity
Employee fatigue can be detrimental to any financial institution. If there is a lack of system knowledge between business analysts and other analytics professionals, this can reduce productivity. Tuning will help analysts understand what to look out for and give an increased confidence in their system, creating an environment that supports collective model optimisation. When systems run smoothly and generate the expected alerts, it reduces the need for human intervention and therefore greatly boosts efficiently and will reduce cost.
Regulators will task banks and financial institutions with proving their systems have robust governance, efficient risk protocols and sufficient internal control mechanisms capable of managing financial crime risk. Furthermore, the law can often stipulate a legal requirement in which all firms must comply. Tuning and optimisation will help to mitigate the chance of falling by the wayside of compliance.
With tuning and optimising, you gain a deeper understanding of how your system is performing. It can perform root cause analysis of underlying data and benefit you with a report of what to tune and change. Adjusting parameters via this method can help to positively reduce the number of falsely generated alerts.
Tune and Optimise your system
At Contineo FRS, we provide specialist services and unique technology to tune and optimise your systems for you. We will identify any systematic gaps and potential weaknesses to help make your systems more robust so they can work harder and smarter for you. Speak to one of our experts for a consultation, request a demo or email [email protected]
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