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Compliance

Matchi Trend Report - Digital Account Origination

Fintechs that address the different aspects of compliance have been referred to as RegTech and focus on simplifying and enhancing robust controls for meeting regulatory requirements which include employee surveillance by non-traditional technology (e.g. social media monitoring), client onboarding (e.g. digital onboarding) and predictive analytics that can flag early warning by analysing patterns.

In its simplest form, the compliance function manages regulatory risk, i.e. the consequences of not complying with relevant regulations. Compliance in the financial institutions usually covers the areas of governance, structure and the decision making process, procurement, principles of CSR, disclosure policies and sustainability reporting.

Operational compliance includes the assessment of integrity risk and reputation risk, e.g. AML, KYC, new product development. Conduct compliance includes risk in terms of conflict of interest, insider trading etc.

Operational compliance includes the assessment of integrity risk and reputation risk, e.g. AML, KYC, new product development. Conduct compliance includes risk in terms of conflict of interest, insider trading etc.

Awareness training and monitoring of these practices consume a significant amount of time of the compliance function but these are essentially reactive.

The era of digitisation of the bank processes has led to different compliance risks as well as the development of newer technology tools to manage current and anticipated risks. The abundance of data from multiple sources as well as the use of analytics can been combined to form powerful tools to predict, and hence effectively combat, compliance breaches.

These include employee surveillance by non-traditional technology (e.g. social media monitoring), client onboarding (e.g. digital onboarding).

Predictive analytics can be even more powerful in anticipating fraudulent transactions (e.g. early warning systems by analysing patterns).

Onboarding

Fraud prevention

Analytics

Monitoring solutions

Efficiency tools






More on Matchi: Matchi is a global fintech innovation match-making firm, since 2013. Matchi has worked with over 100 leading banks and insurance companies (FIs) around the world, and has a database of over 2,500 fintech firms. Matchi provides both a highly curated portal of fintech solutions, as well as bespoke projects for FI clients to source targeted fintech solutions aimed at the FIs focus areas / pain points. The global Matchi team has run Innovation Challenges and Market Scans for multiple FIs around the world, in markets as diverse as Canada, Japan and India, as well as searches in other geographies.

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