The wake of the pandemic and new advancements in technology have facilitated the transition of supervisory activities to a virtual environment, and supported the wider adoption of supervisory technology (SupTech) tools for prudential supervision. Financial authorities are now leveraging new tools in supervisory monitoring and examination to safeguard the stability of the financial system and prevent potential shocks or collapses in the banking sector.
The South East Asian Central Banks Centre (SEACEN) Research and Training Centre recently held a course on New Tools in Supervisory Monitoring and Examination, hosted by Central Bank of Sri Lanka. The two-day course brought together SEACEN member central banks and monetary authorities, as well as practitioners from the private and public sectors to discuss new tools being used in supervisory monitoring and examination.
Napier’s Board Advisor, Robin Lee conducted the session on the need for financial institutions to have a holistic view of financial crime risks by using advanced RegTech and compliance technologies, like Napier’s Perpetual Client Risk Assessment (pCRA). Here’s a summary of the key points discussed on pCRA:
Financial Crime Compliance (FCC) teams today face a multitude of challenges:
- Siloed technology, processes and teams driving high cost of ownership, and the difficulty to catch up with the increasing sophistication of criminals.
- Inefficient and non-compliant FCC processes causing high volume of false positives and undetected risks.
- Multiple and inconsistent risk assessment methodologies across the business and industry, inhibiting the 360-degree view and holistic risk assessment of customers.
- Inflexible systems that delay rules creation and tuning in line with evolving regulations.
- Fragmented and duplicative customer outreach causing poor customer experience.
While the industry is addressing these challenges by moving towards perpetual Know Your Customer (pKYC) tools to enable real-time and ongoing monitoring of customer risks, Napier goes one step further to answer to these challenges effectively for a holistic view of financial crime compliance through perpetual Client Risk Assessment (pCRA).
What is pCRA?
Perpetual Client Risk Assessment is a unifying financial crime compliance solution enabling an always-on, always current, 360-degree view of customer risk at a single point of operational triage, investigation, and case management.
Robin explains how pCRA works in simpler words - like how social network operators collect data from a user’s profile; who your friends are, the posts you engage with, and the pages visited to understand your likes and provide the best customer experience, Napier collates data from various points such as client data, Know Your Customer (KYC) documentation, transaction monitoring, client screening and counter/associated third parties. But instead of using it for targeted advertising, Napier’s intelligence solution analyses such data continuously to achieve a dynamic and accurate assessment of financial crime risks across the full client lifecycle.
How does pCRA help supercharge FCC?
With pCRA, the complex undertaking of defining and reviewing multiple variables that affect a customer’s risk level becomes simple and automated. "The industry is driving towards a more holistic view of financial crime risks, and enabling advanced technology to supercharge processes with automated risk score adjustments. This has the potential to transform regulatory compliance from a cost-centre into a business advantage” said Robin.
pCRA enables an ‘always listening’ risk assessment, ingesting real-time information from any risk events such as screening, monitoring and KYC, and providing a full 360-degree snapshot of the client and their risk. Through intelligent dynamic client segmentation, (p)CRA can discount risks and automatically resolve alerts, freeing up valuable time for the analyst and directing human intervention only where necessary.
Easy-to-configure, intuitive User Interfaces (UI), such as that in Napier’s pCRA solution, allows organisations to define and test complex rules across multiple geographies, clients, or business units to drive consistent and ongoing risk assessments. Users can test and tune holistic risk scores or thresholds for optimal alerting in a live data, no-code, real-time sandbox. Accessible as a module within Napier Continuum, pCRA enables the most sophisticated, automated, ongoing review of financial crime risks.
Using such ‘always listening’ platforms for financial crime compliance in line with organisational risk policies and regulations, and across every permutation of risk events, organisations enable real-time monitoring of the client to gain a holistic view of client behaviour.
Want to know more?
Read about Napier’s pCRA solution in detail here