7 key digital trends driving compliance and risk management

Financial institutions, under increasing regulatory pressure, are tapping into a wide range of digital technologies to drive compliance innovation. Here are 7 key ones making an impact in the world today:

  1. Robotic process automation streamlines compliance processes and provides for the rapid integration of front- and back-end systems that track and monitor compliance-evidencing and audit trails. This ensures set rules are adhered to without the need for human intervention.
  2. Natural language processing compares compliance requirements against internal policy requirements. It can also help financial institutions monitor and analyze consumer behaviors, setting off red flags in cases of observed deviations.
  3. Artificial intelligence (AI) and machine learning compliance and transaction monitoring help financial institutions monitor and flag transactions. Specifically, they can pinpoint out-of-norm activities and are capable of adapting to new contexts quickly.
  4. Augmented and virtual reality solutions offer financial institutions the opportunity to provide staff with enhanced training, thereby giving their employees the skills they need to do their jobs in the modern world.
  5. Voice and facial recognition software can be used for trade surveillance and compliance monitoring to reduce fraud, insider trading and money laundering.
  6. Big data and machine learning can help financial institutions make more informed decisions related to credit monitoring, guideline monitoring and breach remediations. This is especially important in a world that is producing more and more data every second.
  7. Advanced risk reporting capabilities in management information systems improve data quality, risk aggregation and risk-reporting timeliness. Real-time risk reporting analyzes granular behavioral patterns of customers to identify deviations and anomalies sooner and more accurately.