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Business Strategy: The Use of Advanced Analytics in Financial Services Compliance

Business Strategy: The Use of Advanced Analytics in Financial Services Compliance

This IDC Financial Insights report takes a look at the challenges and opportunities that firms face when deploying aggregated data and advanced analytics for transaction monitoring and customer analysis for compliance. Governments and regulators are increasing the pressure on financial firms to improve their transaction and customer monitoring analysis to help cut off funds to criminals and other "bad actors." Increasingly, firms have also become more concerned about reputational risks and potential damage to their reputations and brands, in addition to fines and sanctions from regulators. Bad actors are getting more sophisticated in their attempts to mimic accepted practices and transactions to avoid detection and arrest. So firms are looking for ways to deploy data and analytics to uncover new patterns and anomalies and outwit bad actors.Bill Fearnley, research director, IDC Financial Insights, reports that "criminals and bad actors are getting more sophisticated in their efforts to avoid detection and arrest. So firms should be aggregating data and applying advanced analytics when possible to discover new patterns and anomalies in customer relationships and transactions to stay ahead of threats and criminal elements. To help monetize the investments in new data and tools, leading firms should also use master data management (MDM) strategies to help firms reuse detailed customer profiles and compliance data to improve sales and marketing programs."

Please Note: Extended description available upon request.


IDC Financial Insights Opinion
In This Study
Situation Overview
Know Your Customer
Anti-Money Laundering
Currency Transaction Reporting
Foreign Account Tax Compliance Act
Office of Foreign Assets Control Sanctions and Other Watch Lists
Politically Exposed Persons
The Approach
Internal, External, and Aggregating Data
Compliance Analytics
Advanced Analytics Tools
Improved Outcomes
Future Outlook
Essential Guidance
Actions to Consider
Learn More
Related Research
Synopsis

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