in Financial Crimes
We can’t have a failure to innovate
BY THOMAS KEEGAN, STEPHEN MARSHALL, AND TERESA PESCE
WITH TECHNOLOGY MOVING at a feverish pace, organizations can o longer have a failure to innovate. Financial institutions face rapid innovationthatisevolvingpracticallyovernight. Innovationincompliance is essential. Institutions must embrace new technologies and find ways to
become more agile or risk disruption to their business. Unsurprisingly, compliance leaders
increasingly recognize that leveraging new technological capabilities to automate their
compliance activities can help them meet these objectives, while simultaneously setting the
stage for greater efficiency and cost savings.
As financial institutions expand their use of intelligent automation—from operational tasks to compliance activities—financial
crime compliance programs are rife with opportunities to automate.
As they plan for 2018, now is the perfect time for financial crime
officers to assess how, and to what degree, they can integrate intelligent automation to support their compliance efforts and goals.
The principles and examples discussed throughout this article can
be applied to many other compliance areas, in addition to those
involving financial crimes.
Innovation and Intelligent Automation
Innovation today means considering new approaches supported
by technology to help alleviate compliance problems, improve
accuracy and efficiency, and help control costs. Numerous types
of technologies are contributing to the pace and nature of innovation. These phenomena have been described using terms such as
robotics, machine learning, and cognitive and artificial intelligence.
Each of these has certain connotations, but they collectively represent a continuum.
At one end of the spectrum, robotics is directed toward having
a computer programmed to automate highly repeatable rote tasks.
Workflows and processes that are automated using robotics, are
well established and deterministic. At the other end of the spec-
trum, machine learning, and cognitive and artificial intelligence
are used to automate and augment human decision making that
is less rote, although well-defined and
more judgmental. For our purposes,
we use the term “intelligent automa-
tion” to span the spectrum of innova-
tion that can best describe financial
crime programs today.
The ways in which financial crime
officers can integrate intelligent automation capabilities into their programs
has greatly expanded. And as such,
programs can more effectively and efficiently manage regulatory compliance
risk. Examples of where such technologies can be used across three levels, are
provided in the Intelligent Automation
Continuum graphic on page 25.
Drivers of Change
To set the tone, let’s briefly examine three primary drivers that
are encouraging financial crime officers to integrate intelligent
automation—regulatory scrutiny, cost pressure, and innovative
1. Regulatory scrutiny shows no sign of abating. In the past, finan-
cial crime officers have largely been able to address increasing
regulatory scrutiny (and the resulting fines and enforcement SHUT