Long considered an outdated process with too many manual customer touchpoints, anti-money laundering is a major concern for the economy. Friction leads to poor user korean numbers phone experience , which has led many customers to abandon the onboarding process. Additionally, increased third-party risk and the advent of digital transformation has created an explosive growth in illicit financial activities at the hands of tech-savvy criminals.
Below are the three main challenges banks face today regarding their anti-money laundering processes:
Outdated processes. Traditionally, communication between financial institutions and government authorities has been one-way, time-consuming, and based on manual or paper-intensive processes. The lack of real-time information flow and visibility into illicit transactions has created loopholes that criminals are exploiting on a massive scale. BankNXT says many banks operate as an “island,” meaning banks don’t talk to each other and work in isolation. This makes it very easy for a money launderer to move from one bank to another.
Slow to innovate. Legacy solutions, inefficiencies in operations, and paper-intensive manual processes still exist at many banks today. What’s holding them back? Experts say that while most of the tech facelifts have happened on the front end (like mobile banking apps), many banks are struggling to extend them to the back office. The combination of multiple legacy systems, paper-based workflows, and a lack of sophisticated IT infrastructure and staff makes digital transformation overwhelming.
