Fincom's AML Sanctions Screening Solution Wins Top Honors at the 2023 Banking Tech Awards USA

Fincom, a leading provider of innovative banking technologies, emerged victorious in the highly competitive AML & Compliance Tech of the Future category at the prestigious 2023 Banking Tech Awards USA. The company's groundbreaking AML Sanctions Screening solution impressed the judges and industry experts, solidifying its position as a game-changer in anti-money laundering (AML) compliance.
 

The Crucial Role of AML Sanction Screening
 
AML sanction screening is a critical regulatory obligation that involves meticulously cross-referencing names, addresses, and other transactional details against various watchlists, including government sanction lists. Regulators insist on conducting this rigorous task daily throughout the year to ensure compliance. Whether it's processing payments, granting loans, or updating sanction lists, AML sanction screening is a mandatory requirement for financial institutions.
 
Existing Technologies and Operational Challenges
 
The current challenges faced by financial institutions regarding AML sanction screening stem from outdated technologies and operational inefficiencies. Even the newer solutions on the market fail to meet the demands of modern regulations and the need to screen against vast and diverse multilingual databases of individuals and entities. Consequently, accurately matching names becomes a significant challenge.
 
Alerts, False Positives, and False Negatives
 
In the market today, the primary focus of AML technology revolves around three key parameters: alerts, false positives, and false negatives.
 
Alerts indicate a potential match, generating a significant number of notifications. Existing technologies yield an average alert rate of 30-50%, resulting in an overwhelming volume of alerts for analysts to handle.
 
False positives refer to multiple results generated for each alert. Advanced systems in the current AML technology landscape produce approximately nine false positives for every alert. This prolongs the time to resolve alerts, averaging over eight minutes per case, and wastes valuable resources.
 
False negatives represent missed hits, where names requiring enhanced due diligence slip through undetected. This poses a serious concern, as it indicates potential criminals evading detection and oversight in identifying names that warrant scrutiny.
 
Introducing the Total Cost of Ownership (TCO)
 
To address the comprehensive impact of AML sanction screening, it is crucial to introduce a fourth parameter: the total cost of ownership (TCO). The TCO encompasses the variable costs associated with alerts, false positives, and false negatives, which must be evaluated collectively. This includes expenses related to IT licenses and the operational activities required to resolve alerted cases.
 
Furthermore, it is essential to consider potential costs such as regulatory fines resulting from missed hits, reputational damage, customer retention issues due to extended processing times, and frequent false alerts.
 
The Significance of TCO in Choosing Sanction Screening Technology
 
Financial institutions must prioritize the TCO as a key consideration when selecting a sanction screening technology. It accurately reflects the true burden imposed by this regulatory requirement. Even if a company pays a higher price for the IT license, a reduced operational load leads to a far more favorable TCO, resulting in savings of over 90% in operating costs.
 
Fincom's Cutting-Edge Solution: Enhancing AML Compliance and Reducing Operational Costs
 
Recognizing the urgent need for an advanced AML Sanctions Screening solution, Fincom has developed and deployed an industry-leading Real-Time AML Sanctions Screening solution. This innovative technology empowers banks and other regulated institutions with highly efficient and effective screening capabilities.
 
Fincom's solution ensures seamless real-time screening with no missed hits, boasting the lowest alert rate on the market (less than 3% compared to the current market average of over 30%). By leveraging this cutting-edge technology, financial institutions can drastically reduce operational expenses by over 90%, resulting in substantial cost savings.
 
In summary, Fincom's victory at the 2023 Banking Tech Awards USA in the AML & Compliance Tech of the Future category highlights the company's commitment to driving advancements in AML sanction screening. With their state-of-the-art solution, financial institutions can achieve enhanced compliance, mitigate risks, and significantly reduce operational costs, solidifying Fincom's position as a trailblazer.