In the 20 years that electronic identity matching has been in existence, there has been a massive increase in demand and a massive amount of change. And that’s by no means the end of it. Demand will continue to grow and changes will keep happening. Financial institutions need to be ready for any changes and prepared to invest in the technology that will keep them up to date and out of trouble.
Sanctions will continue to impact on what is required of screening solutions. They have already progressed from being a minor political tool to an integral part of governments’ foreign policies. They have also become much more complex, requiring more complex systems.
Regulatory changes have also had a considerable impact on solutions and again, they are continuing to evolve. As a result, more research and investment is needed over the coming years to ensure solutions can keep abreast of further changes.
This is one area that causes a lot of concern to financial institutions – the threat of substantial fines has made banks risk averse, but that has to be weighed against the substantial costs of compliance. It’s a balancing act and one that will benefit from technological improvements in the future.
Machines now need to be able to collect, process and disseminate much more sophisticated, complex data. Whether it’s matching names from different cultures and being able to distinguish the cultural context, reducing the number of false positive hits or just making sure a relevant hit is never missed, systems are already doing it.
But, work is still needed to improve filtering systems, further reduce the number of false positive hits and increase automation. If robots can take over many of the decisions on alerts in the next five years, this will be of a huge benefit to organisations in terms of cost and time control.
Financial institutions need to take advantage of any technological advances that come their way – it’s the surest route to being able to meet current and future screening demands, while keeping costs to manageable levels.
Also in our series on identity matching
- What is name screening and why do we need it?
- What’s in a name?
- Getting through the numbers while keeping the hits right
- Keeping on top of high data volumes – what are the options?
- What is the value of screening hubs?
- Future trends and innovations
- The role of robots
- The impact of geopolitics
- Complex sanctions mean complex solutions