What is Compliance as a Service (CaaS)? I believe there hasn’t been any real CaaS solution in the industry yet. Sure, there are solutions and software that can do quite a lot, ranging from risk assessments, transaction monitoring, data visualization, case management, alert investigation, tuning and optimization, AI and ML (Artificial Intelligence and Machine Learning), etc. However, hardly any solution provides end-to-end service to qualify, in my view, as a true CaaS.
What’s missing? You may ask?
The actual coverage assessment analysis, the data quality checks, the event triage, the governance and risk tolerance, the consistent feedback loop, the repeatable tuning methodology … and all the documentation to sustain the aforementioned processes and procedures.
In short words: Analytics, is what’s missing.
Compliance analytics is the gap between FinTech solutions and their customer’s FinCrime compliance needs. This gap requires the FinTech industry to have a more end-to-end view to get their solutions to be better utilized, it also calls for banks and financial institutions to be conscious that the FinCrime compliance journey doesn’t stop at purchasing a solution, which is merely a start.
Compliance as a service will become more and more important as data are available through public ledger blockchains. Regulations will be updated and data privacy won’t be an issue in the future as technology advances. Therefore FinTech companies must think ahead to gain capabilities across the compliance process end-to-end in order to stay competitive in the market in the future.
On the other hand, banks and FIs, including rising Neobanks (Crypto banks) should focus more on Analytics frameworks rather than a technological solution.
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