NEW YORK—Analytics is a powerful tool for regulation and can be used to prevent financial crime, a global report on data has stated.
The research from regtech company Cube and fintech research firm Burnmark explores the evolving possibilities presented by data within financial services, and asks whether it provides a solution to complex compliance, according to P2P Finance News.
The study of 160 global financial institutions found that an increase in digitization has led to the creation of data with different sources, uses and processes coming to the fore.
The research showed biometrics including facial, fingerprint or voice recognition is increasingly used to verify identities and prevent fraud, while predictive analytics uses statistics to determine the likelihood of fraudulent transactions.
The report found machine learning can combat money laundering through analysis of customer behavior and transactions.
The Forecast
The report forecasted the financial sector is moving towards a situation where one or a combination of technology tools will not only assess risk but also address regulation and compliance, P2P Finance News said.
The research found that alternative data – data not within traditional data sources such as financial statements – had the biggest impact on financial institutions and regulation in 2020.