Name: New tools to look out for in the fight against financial crime
Uploaded: 2021-12-20T13:26:38.860Z
Duration: 237.07
Description: As hackers and cyber criminal get ever more sophisticated, financial crime is a serious threat not just to consumers, but to the companies that serve them. Jas Randhawa, Stripe's Head of Financial Crimes, discusses which technologies the industry should keep an eye on in order to stay ahead and keep their customers' money safe.

Future of financial crimre.vtt

English

{{00:00:28}}
The direction, if I had a crystal
ball, and had the information and

{{00:00:36}}
the Intel that I would have from
the industry, I think the one

{{00:00:39}}
area to watch out for is KYC and
electronic identity verification.

{{00:00:45}}
Yeah, there are a lot of standards
being set, there is a lot of

{{00:00:49}}
realization in terms of, you know, when
you sign up for an account, companies

{{00:00:54}}
need to make sure because they can't
do this face to face and you're

{{00:00:57}}
not walking into a branch anymore,
that you are who you say you are.

{{00:01:01}}
And you need to then go and
periodically verify that none

{{00:01:05}}
of these KYC type attributes
for you have really changed.

{{00:01:08}}
And the government is stepping
up their efforts to set standards

{{00:01:14}}
on what good KYC looks like.

{{00:01:16}}
The way we do KYC today is also based
on a lot of regs, which are decades

{{00:01:21}}
old, and there is a lot of effort
being made to make sure we are making

{{00:01:27}}
our regs more recent and relevant.

{{00:01:28}}
And at the same time from a technology
perspective, you know, from KYC

{{00:01:34}}
technology perspective, you think about
interoperable identities and portable

{{00:01:39}}
identities and, you know, people being
able to own their own identity data,

{{00:01:43}}
I think that's something that is going
to be a huge space to watch out for.

{{00:01:48}}
I think in addition to that you are
seeing a lot of new vendors play into

{{00:01:53}}
the space of anti money laundering
transaction monitoring systems.

{{00:01:59}}
And they're coming up with
a lot of modular system.

{{00:02:01}}
When I say modular, I mean like
systems which are large, like

{{00:02:05}}
Salesforce, you know, you are given
a platform to use the system to your

{{00:02:11}}
need, and you'll adjust and readjust
it to the way your business works.

{{00:02:15}}
Previously, what has really
happened is you had a lot of vendors

{{00:02:18}}
that you have pulled together
systems for the entire industry.

{{00:02:23}}
No two banks that are alike, even if
you play in the same space, so you

{{00:02:26}}
have to do a lot of customizations
and a lot of adjustments, which, you

{{00:02:30}}
know, most financial institutions
do not have the bandwidth for.

{{00:02:35}}
And that is changing.

{{00:02:36}}
So there are some vendors which are
surfacing now, which are working

{{00:02:42}}
on this model or fundamental of how
production monitoring should look like.

{{00:02:46}}
And the next couple of years,
you can definitely expect to

{{00:02:48}}
see a lot of growth in that
area and new players emerge.

{{00:02:57}}
So as I mentioned, I think electronic
identity verification based on

{{00:03:02}}
interoperable identities is something
to watch out for modular systems.

{{00:03:08}}
You will see a growth in machine
learning based solutions.

{{00:03:13}}
It's been over like five, six years,
we've all been talking about AI slash

{{00:03:17}}
machine learning at conferences.

{{00:03:19}}
But if you really go out in the
market for financial crimes, you

{{00:03:23}}
don't really see a lot of cutting
edge machine learning based systems.

{{00:03:26}}
So I think those are gonna surface and
those systems covered with RPA, robotic

{{00:03:35}}
process automation technology, that are
going to bring down your operational

{{00:03:38}}
costs for the repetitive work.

{{00:03:41}}
I think once they get packaged
together and they've got good

{{00:03:45}}
use cases, I think those are the
ones that I would watch out for.

The direction, if I had a crystal
ball, and had the information and

the Intel that I would have from
the industry, I think the one

area to watch out for is KYC and
electronic identity verification.

Yeah, there are a lot of standards
being set, there is a lot of

realization in terms of, you know, when
you sign up for an account, companies

need to make sure because they can't
do this face to face and you're

not walking into a branch anymore,
that you are who you say you are.

And you need to then go and
periodically verify that none

of these KYC type attributes
for you have really changed.

And the government is stepping
up their efforts to set standards

The way we do KYC today is also based
on a lot of regs, which are decades

old, and there is a lot of effort
being made to make sure we are making

And at the same time from a technology
perspective, you know, from KYC

technology perspective, you think about
interoperable identities and portable

identities and, you know, people being
able to own their own identity data,

I think that's something that is going
to be a huge space to watch out for.

I think in addition to that you are
seeing a lot of new vendors play into

the space of anti money laundering
transaction monitoring systems.

And they're coming up with
a lot of modular system.

When I say modular, I mean like
systems which are large, like

Salesforce, you know, you are given
a platform to use the system to your

need, and you'll adjust and readjust
it to the way your business works.

Previously, what has really
happened is you had a lot of vendors

that you have pulled together
systems for the entire industry.

No two banks that are alike, even if
you play in the same space, so you

have to do a lot of customizations
and a lot of adjustments, which, you

know, most financial institutions
do not have the bandwidth for.

So there are some vendors which are
surfacing now, which are working

on this model or fundamental of how
production monitoring should look like.

And the next couple of years,
you can definitely expect to

see a lot of growth in that
area and new players emerge.

So as I mentioned, I think electronic
identity verification based on

interoperable identities is something
to watch out for modular systems.

You will see a growth in machine
learning based solutions.

It's been over like five, six years,
we've all been talking about AI slash

But if you really go out in the
market for financial crimes, you

don't really see a lot of cutting
edge machine learning based systems.

So I think those are gonna surface and
those systems covered with RPA, robotic

process automation technology, that are
going to bring down your operational

I think once they get packaged
together and they've got good

use cases, I think those are the
ones that I would watch out for.

Trend

As hackers and cyber criminal get ever more sophisticated, financial crime is a serious threat not just to consumers, but to the  companies that serve them. Jas Randhawa, Stripe's Head of Financial Crimes, discusses which technologies the industry should keep an eye on in order to stay ahead and keep their customers' money safe.

thumbnail_Jas Randhawa.jfif

xsmall_Jas Randhawa.jfif

Jas Randhawa.jfif

Jas Randhawa

Global Head of Financial Crime Compliance

Virtual currencies, peer-to-peer financial solutions, and mobile payments all create compliance issues, criminal opportunities, and, in the long run, maybe existential questions for banks if they do not find ways to respond and control the risks. 
Randhawa underlines three important technologies which would be keys to combat financial crime in the next couple of years. 

Direction to combat financial crime

Randhawa presents the importance of AI and ML systems to fight financial crime and points out RPA and electronic identity verification platforms' potential. He mentions that the systems that reduce operational costs are the ones to keep an eye on.