Excavate opportunities around Disparate FinCrime case management systems!
Alert and Case management is the spine of any Financial Institution to effectively tackle financial crime activities such as fraud and money laundering. It is vital for FI to be compliant with regulatory requirements and avoid any reputational damage. I happened to deep dive into the FinCrime case management landscape recently and thought of sharing my view with this blog.
When
drilling down to FinCrime case management solutions, one of the major
bottlenecks for the effective and efficient decision-making process for
investigators is
- Disparate IT systems for each LOB or
departments causing unavailability of required data for investigation in
one place
While there are many challenges around case management
solutions, I would like to focus in this blog primarily on disparate IT systems.
I think
even top financial institutions struggle to overcome this challenge as
- mostly it requires an IT transformation of
their much-acquainted legacy systems where reluctances from the business
for the change
- political challenges for aligning all required
stakeholders across LOB
- budgeting constraints and so on
However,
FIs must integrate their siloed systems and create unified enterprise-level
case management and investigation platform. This could be an adventurous move, but
to stay relevant in the industry among competitors and tackle ever-growing
financial crimes, this transformation journey is vital.
To
address this challenge, I have seen some FIs decide to build their in-house
solutions. The advantage of an in-house solution is that the expense is limited
to building the own solution from scratch and subsequent maintenance. But the
challenge is on continuously scaling the solution to the latest regulatory
needs, keeping in par with the latest technology advancements and R&D
spent.
Alternatively,
there are multiple market leaders ready with apt industry-proven out of box
solutions leveraging cutting edge technologies, automation, AI/ML solutions
features, and easier system integration through APIs. The advantages are no
investment required from FIs on R&D, continuous scaling of the solution
aligning latest technological advancement. However, the challenges are the
dependency on the third-party vendor for of out of box product-related fixes
and limitations, EOL related issues, and in some cases hefty licensing cost.
Largely,
considering the pros and cons, I feel, most of the FIs inclined to go with
third-party solutions with proven market leaders.
NICE
Actimize is one such market leader in fraud and AML case management solutions.
They are providing unified case management solutions that can be quickly and
easily integrated with interfacing systems. They have elevated their RCM/ECRM
solutions by augmenting RPA, AI/ML capabilities to further bolster and provide a
unified alert and case management solution which is called NICE Actimize ActOne.
Some of
the ActOne features such as Automated Entity Resolution, advanced automated
work allocation to eliminate manual work allocation, productivity studio to
measure operational efficiencies, RPAs for advanced automation, and process
consistency are some of the key differentiators that will help address
operational inefficiencies resulting in significant productivity improvement
and cost savings.
Needless to say, a variety of products and solutions such
as Pega, Appian are available and FIs can choose the right one that is most
suitable for their environments by doing specific market research.
While some of the customers, already leading their
journey towards advanced unified case management systems, there are still many
customers at the early stages where there are opportunities to pitch in
proactively and recommend solutions. And it's the right time to excavate for
such opportunities with your customer landscape!
Feel free to share your view and experience on similar
case management products and solutions.
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