Lucinity featured in Euromoney: Financial crime compliance is ripe for innovation

The right technology makes AML processes more productive and efficient

Luis Rolim
2 min read

In a recent article, Euromoney spoke to our founder and CEO, Guðmundur Kristjánsson (GK), about why banks must keep spending on systems that deliver more efficient anti-money laundering as crises spur financial crime. They write: "Many of the systems banks use date back to the aftermath of September 11, 2001, before the advent of the smartphone.”

GK says more must be done: “The suspicious activity report (SAR) system is broken. It is an endless box-ticking exercise and hugely time-consuming compilation of pointless reports, most of which aren’t even from suspicious transactions.

Banks have tried to automate financial crime compliance, often using artificial intelligence (AI). But AI on its own is just a black box, says GK. “Banks that use such systems find they need even more data scientists to interpret the findings. Even if leveraging AI can help reduce false positives, it may actually increase review time if the results are not explainable,” he says.

AI coupled with human cognitive thinking reduces false positives

Lucinity knows that AI technology that is used in combination with human cognitive thinking can help financial crime fighting teams become more efficient. The Lucinity platform raises far fewer false and increases teams’ productivity by up to 50%.

The need for the sort of tech solution Lucinity provides is made clear with private capital rushing to fund green energy innovators. Series A funding was secured the first month into the global pandemic. Series B prevailed in another tenuous time, the invasion of Ukraine.

GK states, "Last year, investors wanted to hear about four times, five times, and six times growth. This year is more about sustainable growth and a plan for the path to profitability.

“We had previously noticed some investors that usually venture in rounds C and D looking to come into rounds A and B instead. That trend may have pushed up valuations last year."

Financial crime compliance is ripe for innovation
Banks must keep spending on systems that deliver more efficient anti-money laundering as crises spur financial crime.
Dive into the full article on Euromoney.com

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