Global digitization and unprecedented changes to financial services business models are mandating transformation. As a result, financial institutions are shifting towards driving real-time payments, better managing risk across the organization, and optimizing financial crime operations. Pivotal to these efforts is the agility and scalability offered by advanced technologies such as cloud, artificial intelligence (AI), and blockchain.
We at Microsoft are dedicated to developing a platform that supports financial services institutions (FSIs) in creating more intelligent banking processes. Find out more on how firms can implement a compliant, secure and scalable infrastructure in our eBook. Read on to learn more about Microsoft’s vision for the future of banking.
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Institutions that implement a modern platform gain a single view of all payment types and APIs for rapid customer data integration and onboarding, which in turn, streamlines operations. Additionally, infusing cloud-based payments approaches with AI enables institutions to gain improved insights from their data.
Manage risk across the organization
In addition to modernizing payments, institutions are also seeking to improve risk insights. Due to an unprecedented level of regulations, banks are faced with difficult implementation deadlines, higher compliance costs, and outdated on-premises systems that lack the compute power needed to deliver required risk management assessments. These challenges often stand in the way of compliance with regulations such as Fundamental Review of the Trading Book (FRTB.)
Leveraging cloud-based tools, improving data management practices, increasing cloud computing capacity, and infusing processes with AI enables institutions to enhance their existing risk management systems and improve risk insights across lines of business. These insights offer what’s needed to maintain compliance, reduce costs, and improve capital efficiency.
Optimize financial crime operations
FSIs are also looking to lower compliance costs and strengthen their financial crime operations. Financial crime is constantly evolving – especially with the rise of online and mobile banking – and has outpaced current prevention methodologies. Failure to prevent financial crime is costly and has real-world consequences that extend beyond FSIs. Legacy anti money laundering (AML) detection solutions are prone to high false positive rates and untenable costs, rendering them unsustainable.
Cloud solutions and AI provide a modern approach that helps reduce false positives and compliance costs. Enhanced data analytics enable banks to conduct ongoing risk scoring, and cognitive services and AI enhance anti money laundering efforts. This new approach to AML activities supports institutions’ abilities to identify and respond to new criminal activities more quickly.