The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

Of this, £57.2 million was stolen via fake investment scams, £43.5 million by criminals impersonating police or bank staff and £18.5 million via romance scams.

As threats evolve, so must the approach to combatting them. Advanced algorithms and expansive data networks offer more robust, efficient and accurate ways to identify and mitigate financial risks. So, how do financial services firms best utilise these technologies?

Risk orchestration: the conductor of fincrime prevention and compliance

Risk orchestration brings together various processes and tools involved in managing fincrime risk and regulatory compliance. The technology acts like a conductor in an orchestra, seamlessly coordinating KYC/B, AML checks and fraud detection into an efficient, unified workflow.

Utilising advanced data analytics, machine learning algorithms and automation, risk orchestration platforms analyse vast amounts of data, identify patterns and conduct the right checks at the right time. This helps flag potential risks with greater accuracy, accelerates decisioning and reduces costs.

Operational efficiencies of orchestration

Implementing the right orchestration technology not only boosts the effectiveness of fincrime prevention strategies but also enhances operational efficiency. That’s particularly around identification and verification during customer onboarding.

Orchestration eliminates the need for multiple tools, parallel processes and manual reviews, cutting onboarding processes from days to seconds. Fraud is also  identified earlier, leading to a reduction in unnecessary KYC, and greater efficiency in the use of identity verification services.

Leading the fincrime fightback

Orchestration technology makes it easier to access and connect to multiple providers simultaneously through one integrated interface. So, financial services firms can draw on best-in-class providers, while also simplifying back- and front-end processes.

Larger financial firms, with existing supplier relationships, can phase in adoption of orchestration. Once integrated, the no-code nature of orchestration solutions means that updates and innovations can be deployed quickly.   

In practical terms, bringing multiple solutions together into a single customer view means that compliance and fraud managers can work from one single source of truth. Developers can work via one API connection. And legal, finance and procurement managers can work from one contract.

Effective risk management for borderless scale

Having all their RegTech in one place helps businesses enter new markets more easily, scale quicker and accommodate more local customisation, while still ensuring compliance with relevant regulations.

The fight against financial crime in the digital age demands innovative, robust, and adaptable solutions. With its comprehensive approach to KYC/B, fraud and AML, risk orchestration technology  represents a significant step forward in this fight.

Read more about the challenges and predictions for digital identity from Signicat experts in the ebook Orchestration: The Key to Compliance and The Key to Harmonising Fraud, Digital Identity and AML Compliance.