The combination of increased online financial activities, regulatory demands, technological advancements, and the need to enhance customer experience and operational efficiency is drivng the growing need for specialized technology in fraud detection, compliance, and risk management.
In a significant move that underscores the growing necessity of regulatory technology in the financial services sector, several RegTech firms have announced product launches and partnerships aimed at bolstering fraud detection, compliance, and risk management capabilities for businesses worldwide.
This article covers announcements made by IDVerse, Kroll, Unit21, and G2RS.
IDVerse launched FraudHub
IDVerse, known for its innovative identity verification solutions, has introduced FraudHub, a cutting-edge product designed to revolutionize fraud prevention. Following extensive testing with global telecommunications and banking institutions, FraudHub will become available to IDVerse customers this month.
The product stands out by offering contextual insights into user behavior, a novel approach that enhances businesses’ ability to detect and prevent fraud.
Matt Adams, IDVerse’s CTO, likened FraudHub to providing businesses of all sizes with advanced, ethical face recognition security solutions. Key features of FraudHub include early detection capabilities, an expanded toolkit for combating fraud, and streamlined operations for dealing with identified threats.
Kroll unveiled risk analytics monitor and compliance software
Meanwhile, Kroll has launched two new digital solutions aimed at helping organizations manage compliance, fraud, and legal risks more effectively. The Risk Analytics Monitor and Kroll Managed Compliance Software are designed to enable proactive detection of fraud and automation of compliance tasks, respectively.
These tools are built upon Kroll’s extensive expertise in compliance consulting, offering organizations the ability to integrate Kroll’s global risk management knowledge into their day-to-day operations.
Giles Derry, Co-President of Kroll’s Risk Advisory practice, emphasized the critical role of technology in governance and risk management, noting the increasing need for solutions that detect and mitigate risks early.
Unit21 introduced Ask Your Data and AI Copilot
Unit21 unveiled its latest AI-powered features, Ask Your Data and AI Copilot, at Fintech Meetup. Ask Your Data is the market-first AI-driven data analysis tool purpose-built for the financial crime sector. AI Copilot is designed to help fraud and AML analysts resolve alerts with unparalleled efficiency.
These tools are set to transform the way fraud analysts, compliance officers, and risk managers interact with data, offering a conversational interface for data querying and providing contextual guidance for resolving alerts efficiently.
Trisha Kothari, CEO of Unit21, highlighted the challenges faced by fraud and AML teams due to data volume and manual processes, positioning these new features as a means to grant teams more control over their data and enhance their response to threats.
G2RS partnered with Mastercard
Additionally, G2 Risk Solutions (G2RS) has partnered with Mastercard to deliver a comprehensive merchant risk solution that incorporates Mastercard’s Brighterion AI technology for improved transaction fraud detection.
This collaboration leverages G2RS’ Merchant Map and Mastercard’s AI models to provide an industry-leading solution for detecting transaction laundering and reducing fraud risk.
Rochelle Blease, President of G2 Risk Solutions, and Rohit Chauhan, EVP at Mastercard Cyber and Intelligence, both emphasized the importance of this partnership in strengthening defenses against payment fraud and enhancing the integrity of the payments ecosystem.
Fraud detection, compliance, and risk management
The increased need for technology specialized in fraud detection, compliance, and risk management capabilities is driven by several factors:
Growing Complexity and Volume of Financial Crimes: The financial services industry faces increasingly sophisticated fraud schemes, including identity theft, phishing, and cyberattacks. As criminals use more advanced technologies, organizations must also leverage cutting-edge solutions to detect and prevent fraud effectively.
Digital Transformation: With more businesses moving online, there’s a greater surface area for cybercriminals to exploit. Digital transactions, while convenient, offer anonymity and speed that fraudsters can abuse. Technologies specialized in fraud detection help in identifying and mitigating risks in real time.
Regulatory Pressure: Financial institutions worldwide are under significant regulatory scrutiny to prevent money laundering, terrorist financing, and compliance breaches. Regulatory bodies are imposing stringent requirements for compliance and risk management, leading to a demand for technology solutions that can automate and enhance the accuracy of compliance processes.
Consumer Expectations: Consumers demand fast, seamless, and secure transactions. To maintain customer trust and loyalty, companies must ensure their systems are protected against fraud without compromising the user experience. Advanced fraud detection and risk management technologies help balance security with convenience.
Globalization of Financial Services: As businesses expand globally, they encounter diverse regulatory environments and fraud patterns. Technologies that offer global compliance solutions and adapt to various types of fraud across different regions are increasingly necessary.
Cost and Efficiency: Manual fraud detection and compliance processes are resource-intensive and prone to human error. Automated solutions can significantly reduce operational costs, improve accuracy, and enable firms to reallocate resources to core business activities.
Evolving Technologies: The rapid evolution of technology itself, including the use of artificial intelligence, machine learning, and blockchain, offers new opportunities for enhancing fraud detection and compliance processes. These technologies can analyze vast amounts of data to identify patterns and anomalies indicative of fraudulent activities.
