According to Nish Kotecha, Co-Founder of SaaS business Finboot, digital passports are so adaptable that they might represent the future of banking.
AML checks are dynamic because they must track the lifespan of a customer's connection with a financial institution. They must be strong, dependable, consistent, and transparent in order to recognize changes in consumer behavior or trends and mitigate risks.
This is typically where traditional financial institutions struggle. Legacy systems are ill-equipped to track the customer journey from onboarding through transaction history and then dynamically updating their risk profile.
According to Wise's full-year results presentation FY22, published June 22, the company has over 13 million clients, links 70+ countries, and has transacted over £76 billion, generating a gross profit of £372 million. It's astonishing that AML and KYC checks remain a key risk for a corporation whose business model is based on transferring money between jurisdictions.
Risk assessment methods are often tailored to each FI, but they always have a set of data needs. Furthermore, in the digital era, every transaction leaves a trace; the difficulty is how to record and analyze these traces. This procedure must be evaluated against the need to simplify and enhance the client experience.