In an industry first, Napier has incorporated their innovative machine learning capability, Intelligent Analysis, into its latest transaction monitoring product release, following extensive research and a successful trial with prime London brokerage BCS Global Markets.
Wendy Langridge, Chief Regulatory Office at BCS Prime Brokerage Ltd, comments:
“We recognise that using machine learnings solutions coupled with a risk-based rule approach is the best way to properly address the risks posed by financial networks involving millions of transactions a day.
“We are already seeing the benefits of Napier’s Intelligent Analysis platform, not only in lowering the risks posed by fraudulent activity but in future-proofing the company’s AML activity and demonstrating belt-and-braces compliance activity to regulators.”
Branded as ‘Intelligent Analysis’ (IA), this technology will give customers immediate access to the benefits of unsupervised automated machine learning in a purpose-built AML data environment.
In a move to give financial institutions and banks the capability to rapidly and dramatically improve their ability to detect suspicious financial behaviours, the IA platform works natively with the Napier Transaction Monitoring solution or can be integrated into any existing AML platform. The automated processes powering IA dramatically reduces manual tasks, minimizing the need for human intervention. Customers can immediately benefit from the enhanced machine-learning analytics to reduce false positives and false negatives.
The benefit of adding Intelligent Analysis to an existing AML system is that IA platform can be used to rapidly identify anomalous patterns from millions of transactions that may otherwise be excluded from typical rule-sets.
In the current financial crime landscape, where the challenge is finding effective methods to keep up with sophisticated criminals who constantly change their behaviours to outwit existing defences, the power of machine learning is its ability to detect these unusual patterns of behaviour that are not identified by rulesets.
Also in this product release, Napier introduces a fully customer-centric investigative approach, bringing together KYC data with transactional data. The expanded user-interface and analytics dashboards show a multitude of deep insights into a customer’s expected versus actual behaviour. This allows banks and financial institutions to gain a far more in-depth view of their customers and empowers compliance teams to act rapidly and confidently in relation to suspicious activity and thereby reduce time and exposure to risk.
Julian Dixon, CEO of Napier, comments:
“Our team has been working hard to embed the learnings from our work with our customers into our latest release.
“We are very proud to be able to highlight the great work we have with BCS Prime Brokerage Ltd, and we look forward to working with them to make sure their compliance safeguards are as comprehensive as any around.
“One of the best ways to improve the effectiveness of AML strategies, without the need for a complete overhaul of current systems, is to bolt on technology like Napier’s IA, as the value of the financial intelligence to be gained through employing machine learning analytics into transaction monitoring cannot be overemphasized.
“Rules alone are not enough; harnessing machine learning and automating processes in AML is the only way institutions will be nimble enough to spot suspicious activity as it happens.”