Using AI to Streamline Compliance Processes

2024 is proving another standout year for the regulatory space, finding itself under the spotlight, for better and worse reasons. This month, The Fintech Times spoke to industry experts including Lucy Huntley, FullCircl's Banking Success Director, to discuss some of the biggest issues regarding compliance and financial rules, as well as the solutions hoping to ease the compliance journey for firms and make the fintech world fairer and safer. Read the original FinTech Times article here.

Kicking off our regtech focus this month, we will look to establish the biggest challenges that companies currently face when trying to ensure compliance within the fintech industry.

Regulatory rules are constantly changing, with new ones being introduced at a rapid rate. While firms are often given time to transition and adapt to these changes, a vast number of challenges remain. But what are the biggest obstacles facing firms? We asked industry experts to find out.

Keeping compliance teams on their toes

“The regulatory framework evolves constantly, and it can be challenging for compliance teams to change their operations so frequently,” explains Olympe Leflambe, general counsel, legal and compliance at Mangopay, the payment infrastructure provider. “Even with agile teams and tools, changes can be disruptive, especially when legislation hasn’t yet caught up with technology”.

But it’s not just falling foul of regulatory rules that teams need to be wary of.

Leflambe continues: “In parallel, fraudsters leverage new technology very quickly (for instance, using deepfakes to circumvent liveness checks) and compliance teams must remain very vigilant about new controls not being outdated as a result.”

A ‘double-edged sword for compliance teams’

Matthew Franzyshen, business development manager at Ascendant Technologies, a full-service IT company, explains how the rapid evolution of artificial intelligence (AI) has both positively and negatively impacted compliance.

“I think the pace with how technology is evolving is a double-edged sword for compliance teams. On one hand, these technological advancements help make the work more efficient, simple, and agile. It helps create a space where compliance teams can focus on hard-hitting issues rather than waste time on mundane work.

“However, the emergence of these technologies means that regulations to monitor their proper usage also crop up. Case in point is the wrongful usage of AI and machine learning, which poses tons of cybersecurity risks for companies. Tons of fraud and scams have come about due to these technologies, of which compliance teams need to prepare and be aware of to protect the integrity of the company. The biggest issue, though, is that new scams crop up faster than older ones are addressed. Keeping up with this can be a true headache.”

Changing state to state

For firms in the US, a fragmented regulatory landscape across states can also leave roadblocks for compliance teams to overcome explains Gale Simons-Poole, chief risk officer at BHG Financial.

“BHG occupies a distinct position in the lending landscape: we are a non-bank lender that works with banks and so we interact frequently with federal and state regulators. One of the biggest challenges that compliance teams are facing is making sure their teams are staying on top of ever-changing regulations.

“States have interests and priorities that differ from federal regulators, which makes this more challenging and even more important.

“Regulations also change every year, and it is imperative to keep a diligent eye on them, which is why BHG has built such a robust regulatory team with deep regulation and compliance expertise to ensure we’re staying on top of the shifts and that we are always in compliance.”

Preparing for DORA

Meanwhile, firms in the European Union have a different challenge to consider altogether. Guy Mettrick, industry vice president at process automation platform Appian, discusses the impact incoming regulatory rules could have.

“The Digital Operational Resilience Act (DORA) represents a huge challenge for compliance teams. The regulation, coming into force in January 2025, will add the complexity of enhanced governance across the entire supply chain. In response, compliance teams must integrate sophisticated risk management across supply networks and third-party relationships.

“Renegotiating contracts and updating service-level agreements (SLAs) within tight deadlines adds to this burden. The increased compliance complexity and costs necessitate substantial investment in technology and training. Regular resilience testing and reporting further strain resources.

“Lastly, shifting towards a centralised compliance approach requires significant organisational restructuring and adopting advanced automation and AI technologies.”

‘Headache’ over new rules

“From a data privacy and cybersecurity perspective, I think the greatest challenge for compliance teams currently is keeping abreast of all the legislation, rules and regulations applicable to their organisation,” says Sarah Pearce, partner at law firm Hunton Andrews and Kurth.

“Compliance teams have robust GDPR frameworks in place but there are a wealth of other rules and regulations applicable to those operating in the financial services sector that require additional processes and procedures to be put in place – and new rules and regulations are constantly emerging.

“In the EU for example, the NIS2 Directive, introduces a new era of EU cybersecurity legislation and must be transposed into national law of the EU Member States by October 17, 2024. Also in the EU, DORA is specifically directed at the financial services industry and is aimed at strengthening the IT security of financial entities and making sure that the financial sector in Europe is able to stay resilient in the event of a severe operational disruption.

“The rise of AI and the EU AI Act, together with other laws emerging globally provides an additional headache for fintech compliance teams given the multiple use cases likely within such organisations.

“There will be some overlap for with existing requirements and compliance teams can, to some degree, leverage existing practices and frameworks but there are undoubtedly requirements coming in that are entirely new and will require extensive additional operational implementation.”

The rising cost of compliance

For Daniel Bedford, research analyst at Juniper Research, the rising cost of compliance is one of the biggest challenges facing compliance teams.

“The floor is constantly being raised, and leaving businesses to balance regulatory obligations and financial efficiency. Compliance cost encompasses the salaries of compliance staff and their training, regulatory reporting costs, investment in technology upgrades, audit and legal fees, and the cost of implementing new regulatory guidelines and procedures.

“Rising costs are driven by different factors for every organisation, often being dependent on the industries they operate in, such as financial services or healthcare, which have more stringent reporting requirements and heavier fines. For organisations with a more global reach, operating across multiple jurisdictions will result in businesses being subject to varying regulatory regimes, which can drive up the cost of compliance significantly.

“Additionally, specific industries or jurisdictions come with varying levels of regulatory complexity, with growth of standards, laws, and other regulations, which can make compliance more complex and more costly. In order to combat these difficulties, we recommend that compliance teams invest in future-proof technology, that can provide automation and high-throughput analysis, allowing compliance teams to unlock efficiencies better manage their resources, meaning humans can intervene at the right time and avoid manual administration.”

Addressing the challenges

Finally, Lucy Huntley, banking success director at FullCircl, shares insight into how firms can begin to address these challenges, urging them to aim for a well-balanced approach to compliance.

“New rules and updates are continually being introduced, and staying on top of them is no mean feat. It’s perhaps an unspoken challenge but compliance teams are often perceived as a roadblock to the delivery of superior customer experiences and therefore growth. The reality is actually the opposite, a well-balanced approach to compliance can have a hugely beneficial impact, both reputationally and financially, with fewer cases of fraud and money laundering.

“Technology has a key transformative role to play here. A move away from manual processes and workflows towards a more dynamic tech and data-driven compliance strategy helps keep pace in a way that balances the dual challenges of stringent regulatory compliance and delivery of superior customer experiences.”

On 7^th-8^thNovember, FullCircl will join 15 handpicked technology vendors and 45 expert speakers at the 2^nd Transform Finance FinCrime Leaders’ Summit.  

As a headline sponsor of the event, we’re once again playing our part in answering the big questions currently being tackled the FinCrime community and encouraging innovation in response to the biggest challenges facing compliance and operations teams.

‍Financial Crime on the rise

The cost of financial crime is expected to hit $9.5 trillion. In the UK alone there were 1,664 recorded anti-money laundering (AML) events last year, that’s almost 2.5 events per 100,000 people. Financial institutions have reported a 64% increase in fraud attacks, with most noting that financial fraud is becoming more sophisticated, and more challenging to tackle. Likewise, according to UK government data, 55% of businesses experienced known or suspected fraud attempts last year.

This is putting huge pressure on compliance teams, especially when it comes to balancing the dual challenges of stringent regulatory compliance and delivery of superior customer experiences.

Consumer vs Compliance:  How to balance regulatory compliance with seamless customer experiences

Ben Lachenal, FullCircl’s identity solutions specialist, will take to the main stage on the first day of the event to explore how financial institutions can find the balance between compliance and conversion at a time when global KYC and AML regulation continue to evolve at pace, and customer expectations for more efficient onboarding experiences are becoming more demanding.

Joined by Daniel Holmes, Director of Banking, Identity and Market Strategy, this interactive roundtable discussion will delve into the latest trends and challenges in compliance to discover how real-time, compliant onboarding can lead to increased revenue and customer satisfaction.

Including FullCircl’s own research on customer expectations and how 500+ regulated businesses are currently approaching the challenge this is a not-to-be-missed session.

You’ll learn:

• KYC & AML regulation: What information needs to be identified at account opening to remain compliant?
• Customer expectations: How long do customers expect onboarding to take? What processes do they prefer? What drop-off rate should you be aiming for?
• Revenue generation: How can customer onboarding be used as a competitive advantage? Why is real-time account opening the key to success?

Stay current with the latest FinCrime trends

The two-day event is an exclusive gathering of industry professionals in FinCrime, it promises engaging content and interactive workshops that will help you:

• Stay on top of the latest compliance, KYC, scams, and cyber threats
• Engage in the FinCrime community
• Benchmark you organisation against innovative FinCrime leaders
• Uncover the latest innovations from leading technology vendors
• Gather actionable insights for tackling your biggest FinCrime challenges

Join FullCircl and you might even get a complimentary stay at the beautiful DeVere Wokefield Estate

Come and visit FullCircl to find out how we help financial institutions start smarter to grow faster, with compliance solved. Our suite of KYC, financial crime prevention, AML, and IDV software is trusted by 700+ clients to remain compliant and offer customers a seamless onboarding experience.

We have complimentary delegate tickets including an overnight stay at the exclusive De Vere Wokefield Estate, gala dinner, and access to all content streams for free.

Get in touch today.

Identity verification (ID&V) is more than just a security measure, it's a critical component of protecting businesses and their customers. Whether it’s in financial services, online gambling, e-commerce, or telecommunications, ensuring that customers are who they claim to be is essential for reducing fraud, complying with regulations, and building trust.

But what exactly are the different types of identity verification, and how can businesses choose the right methods? In this blog, we’ll explore the key identity verification techniques, their importance, and how they help regulated businesses meet evolving standards.

What is Identity Verification?

At its core, identity verification confirms that a person is who they say they are. This process prevents fraudsters from assuming false identities and ensures businesses only grant access to legitimate customers. However, the terms used around IDV, like identity proofing vs identity verification and identity validation vs verification, can often be confusing.

• Identity proofing vs identity verification: Identity proofing refers to establishing that the attempt to verify identity is legitimate, for example that it’s not coming from a bot attempt. Whereas identity verification is the process of confirming that the information provided is correct and belongs to the person attempting to verified.
• Identity validation vs verification: While validation ensures the accuracy of submitted data (like checking a name against government records), verification ties this data to the individual through things like photo ID or biometrics.

With various types of identity verification techniques, businesses can customise their approach to align with their specific compliance needs.

Why is Identity Verification Important?

In an era of rapidly increasing online interactions, identity verification serves as the first line of defence against fraud and identity theft. Identity verification and authentication are often paired to create a seamless but secure experience. Once an identity is verified, authentication ensures that users can access sensitive data or perform actions like transactions.

Businesses across various industries and jurisdictions must balance user experience with security. For instance, while frictionless processes improve customer satisfaction, inadequate IDV can expose a business to security breaches and regulatory penalties.

Compliance is another critical factor. Regulated industries like finance or healthcare face strict rules, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, requiring businesses to implement thorough identity verification checks. Let’s dive deeper into the steps involved in a full identity verification process.

The Full Identity Verification Process & Types of IDV

The identity verification process usually involves multiple layers to ensure maximum accuracy and security. Here’s an overview of how businesses can structure their verification process:‍

KYC Data Checks

The first step in any robust IDV process is a Know Your Customer (KYC) data check. This involves collecting personal information from the customer—such as name, address, date of birth, and government-issued identification numbers—and validating it against trusted databases. This ensures that the data provided matches official records.

In addition to validating this data, KYC checks are often required by law in sectors like banking, where regulations demand stringent identity proofing to prevent fraud and financial crime.

Document Verification and Biometrics

Once the initial KYC check is complete, businesses can move on to document verification. This involves having the customer submit physical or digital copies of official documents like a passport, driver’s license, or national ID card. Document verification tools use advanced technologies, including artificial intelligence, to scan for forgery or tampering. This ensures the legitimacy of the documents provided.

Beyond document checks, businesses increasingly turn to biometric identity verification for an additional layer of security. Biometrics identity verification systems use facial recognition, fingerprints, or even voice recognition to confirm that the person submitting the documents is the same individual. This reduces the risk of fraud through impersonation or stolen identities.

Anti-Money Laundering (AML) Checks

To further enhance security and ensure compliance, businesses must also ensure that Anti-Money Laundering (AML) and identity verification work in harmony. These involve screening individuals against databases of Politically Exposed Persons (PEPs), sanctions lists, and adverse media reports. AML checks help businesses identify high-risk individuals or entities that could be involved in financial crime or corruption.

• PEPs checks focus on identifying individuals in positions of political power, who may be at a higher risk of corruption.
• Sanctions checks ensure that businesses are not engaging with individuals or companies flagged by governments or international organisations for criminal activities.
• Adverse media checks search for negative news coverage or reports linked to a person’s involvement in illegal or unethical behaviour.

Anti-Fraud Checks

Another critical component of the identity verification process is performing anti-fraud checks. These checks are designed to detect potentially suspicious behaviour or patterns that could indicate fraudulent activity. Anti-fraud systems often rely on machine learning algorithms to analyse transactions, device fingerprints, and geolocation data, allowing businesses to spot inconsistencies that could signal fraud.

Re-screening and Ongoing Monitoring

Identity verification doesn’t end after the initial onboarding process. Businesses must conduct periodic re-screening of their customers to monitor for changes in risk status. For instance, a customer may initially pass all verification checks but later be added to a sanctions list, become a PEP, or appear in adverse media.

Re-screening helps businesses stay compliant with regulations, as well as stay ahead of evolving threats. It ensures that any changes to a customer’s risk profile are detected early, minimising exposure to potential fraud or reputational damage.

What are the IDV Challenges That Regulated Businesses Face?

Regulated industries such as finance, healthcare, and telecom face unique challenges in implementing identity verification solutions. Compliance with laws like the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA), along with stringent KYC and AML regulations, requires businesses to handle sensitive customer data with care while avoiding regulatory penalties.

Additionally, balancing security with customer experience is a common hurdle. Lengthy or complicated verification processes can result in lost business due to customer friction, while weak processes expose businesses to risk. Moreover, businesses must stay updated with rapidly evolving fraud tactics, which require regular updates to verification systems.

Will AI Be a Key Factor in Identity Verification Moving Forward?

Artificial intelligence (AI) is playing an increasingly vital role in identity verification. AI-driven systems can analyse large volumes of data, perform document verification, and detect anomalies in real-time, helping businesses streamline IDV without compromising security.

Biometrics identity verification systems are a prime example of how AI is used to improve both security and user experience. Facial recognition technology can verify identities in seconds, and machine learning algorithms improve with every interaction, refining their accuracy over time.

AI also enables continuous monitoring, allowing businesses to stay ahead of emerging fraud tactics and adapt to new threats more effectively.

What Regulations Do Businesses Need to Be Aware of for Identity Verification?

Businesses operating in highly regulated industries must comply with various global regulations surrounding identity verification. These include:

• Know Your Customer (KYC) laws, which mandate that businesses collect and verify customer information to prevent identity fraud and financial crime.
• Anti-Money Laundering (AML) regulations, including the 6^th Anti-Money Laundering Directive (6AMLD) in the EU, which require businesses to screen customers against sanctions, PEPs lists, and other high-risk categories.
• GDPR and CCPA are privacy laws that dictate how businesses handle personal data, including identity verification records.

Staying compliant with these laws is not only a legal requirement but a crucial part of building customer trust and protecting sensitive information.

Future Identity Verification Trends

The future of identity verification will likely be shaped by a combination of emerging technologies and tightening regulations. Some trends to watch include:

• Blockchain for identity verification: Blockchain offers a decentralised, tamper-proof system for storing identity data, making it difficult for fraudsters to manipulate information.
• Biometric identity verification: The adoption of biometrics will continue to grow, with biometrics identity verification systems becoming the norm for fast, secure authentication.
• Increased regulation: As fraud continues to rise, regulatory frameworks around identity verification will become more stringent, pushing businesses to adopt even more robust verification systems.

Understanding the different types of identity verification is crucial for businesses to protect themselves and their customers from fraud. From KYC checks and biometric identity verification to AML screening and anti-fraud checks, each stage in the IDV process adds a layer of security, ensuring that only legitimate customers gain access to sensitive services.

By staying compliant with regulations and adopting cutting-edge technologies like AI and blockchain, businesses can future-proof their identity verification processes and mitigate risk in an increasingly digital world.

Want to learn more about how you can use identity verification as a driver of compliance with regulation and revenue generation? Contact FullCircl today for a demonstration of our automated identity verification software.

Boosting your investment

Our vast suite of face-to-face, digital and bespoke training solutions are designed to help you optimise your use of our platform. It covers everything from onboarding enablement, and product training; helping you become a super user.  The common objective of all our courses is to help you make the most of your FullCircl investment, and have the best user experience possible.

What’s more, our courses are CPD-accredited.  This allows you to accrue development hours and remain constantly up to date with the latest industry standards, techniques, and knowledge you need to drive continuous value.

‍Transforming your team

Our Training and Enablement team are constantly evolving to stay ahead of the latest learning and development trends - such as personalised and interactive learning, micro-learning and bite-sized content, soft skills training, and continuous development techniques which adapt with you and your needs.

Evolving with you

So, what’s new with the team, and what does this mean for you?

‍Time for a refresh:‍

Following the merger with W2 and the expansion of our range of advanced AML, KYC and IDV tools, we had a total refresh of all our courses.  We’ve also significantly broadened our suite, which now includes:

• Essential training to help you get set up for success.
• Advanced training which takes you on a continual learning journey, constantly equipping you with the skills to drive growth with compliance solved.
• Two new LinkedIn courses to help you become an established thought leader, increase engagement, and forge effective networks and collaborations.
• Bespoke training…

‍Personalised learning experiences:

Ahead of the curve, our training sessions are not generic programs, but instead bespoke learning experiences designed to cater to the needs of our diverse range of learners, preferred styles, and unique business and market-specific needs. A one-size-fits-all approach simply doesn’t resonate anymore, so we continuously work to improve our range of personalised learning experiences - recent offerings have included needs-based courses such as identifying underinsurance, insight-led outreach, and cyber security focused initiatives.

‍Broader consumption options:

As well as face-to-face, virtual and self-paced e-learning, we’ve recently introduced bite-sized training. This micro-learning technique delivers content in small, focused chunks and has been proven to drive up engagement and knowledge retention, and make continuous learning more manageable.  Our new hybrid approach to training is designed to map and mirror your own modern working environment.

‍Monthly lunch and learns:

We’ve introduced a new range of 30-45 minute lunch sessions (held on the second Wednesday of every month) covering soft, professional and practical skills and mental wellbeing. Sessions include ChatGPT, PowerPoint perfection, Excel essentials, presenting with impact, LinkedIn 101, task and time management, and working from home optimisation.

‍BIBA Webinars:

Following the success of our BIBA facility, we’ve teamed up to host a range of free interactive webinars to help generate new leads, initiate timely engagement with clients, prospects and industry thought leaders, and increase revenue.  These sessions attracted more than 250 delegates each, and received the highest satisfaction scores in delegate feedback among all BIBA webinars.

‍More post-learning support:

We’ve expanded our range of post-training support options to include mop-up sessions, informative PDFs, bite-sized videos, and session recordings.  This helps us cater to diverse learning styles and needs, and ensure you always have the resources your require at your fingertips.

But we’ve not stopped there…

When we succeed, our customers succeed

We know that our success helps drive yours.  This is why we introduced the new FullCircl Leadership Enablement Programme, designed to help our own team develop essential leadership skills through a structured, interactive approach.

The course consists of six core modules where participants explore self-leadership, learn to create a supportive environment by addressing unconscious bias and fostering trust, and establish clear expectations and goals. Emphasis is placed on building strong individual and team relationships, delivering effective feedback, and mastering coaching techniques.

The FullCircl Training and Enablement team is committed to helping you stay at the forefront when it comes to starting smarter, to grow faster with compliance solved.  Our effective and accessible training solutions support you in creating dynamic user experiences, empowering skills development, and help you and your business continually evolve.

To find out more about how we can help maximise your investment in FullCircl, get in touch. Or why not see us in action by joining one of our complementary public training sessions.

As regulatory pressure rises, regulated businesses face growing pressure to ensure that they are actively complying with the latest Anti-Money Laundering (AML) regulation whilst providing a seamless customer experience.

As the risks of financial crime escalates, AML identity verification has become a critical process to protect financial systems and prevent illicit activities. But what exactly is AML, and why is identity verification (ID&V) so essential in this process? In this blog, we’ll break down the core components of AML identity verification, its challenges, and future trends.

What is AML and identity verification?

Anti-Money Laundering (AML) refers to the regulations, processes and procedures implemented by regulated businesses to prevent criminals from disguising illegally obtained funds as legitimate income.

These regulations are designed to identify, track, and report suspicious activities that could be linked to money laundering or other financial crimes. Customers are typically screened against Politically Exposed Persons (PEP), sanctions, and adverse media lists to gain an understand of their risk profile.

Identity verification is the process by which businesses, particularly in financial services, verify the identity of individuals who are attempting to open bank accounts, access services or conduct financial transactions.

IDV involves collecting personally identifiable information such as name, address, date of birth, and Government issued identification documents. Once the information is received, businesses will verify the information against data sources such as Credit Reference Agencies (CRAs), electoral information, telco, and other premium data providers to find a match.

AML and identity verification work hand-in-hand as part of Customer Due Diligence (CDD) regulation, and verifying the identity of customers is a foundational element in AML compliance.

When regulated businesses perform electronic AML and identity verification, they aim to ensure that the individual engaging with their services is who they claim to be, and not someone attempting to commit fraud or engage in money laundering.

By following an AML identity verification code or practice, otherwise known as a risk-based approach, companies can avoid hefty fines and protect their reputation while meeting legal requirements.

Why is AML and identity verification important?

AML and identity verification play a vital role in safeguarding regulated businesses and the broader financial ecosystem from misuse. Without proper identity checks, money laundering becomes easier, which can have a ripple effect on economies, from funding terrorist activities to destabilising businesses.

Mitigating financial crime

The main goal of AML checks is to prevent money laundering and other financial crimes. By implementing stringent AML and identity verification measures, companies can reduce the risk of their platforms being exploited by bad actors.

In 2023 alone, banks, gambling operators, and cryptocurrency exchanges were fined a combined $7.1billion for money laundering failures, further demonstrating not only the risk to a business if correct protocols aren’t followed, but also that many businesses are still not fully compliant.

Ensuring compliance with regulation

Authorities like BSA (Bank Secrecy Act), the FCA (Financial Conduct Authority), and other AML regulators require regulated businesses to follow strict guidelines, including money laundering and identity verification regulations. Failing to comply with these regulations can result in penalties, reputational damage, and even the closure of the business.

Enhancing customer trust

Customers want to feel secure when using financial services. A strong AML identity verification process reassures users that their accounts and transactions are being monitored for suspicious activities, and that correct verification has taken place at the point of account opening, fostering trust in the institution.

What challenges are involved in AML and identity verification?

Although AML verification is critical, the process is not without its challenges. Regulated businesses often face a balancing act between maintaining a strict compliance and providing a smooth onboarding process for legitimate customers. Some of the main challenges include:

1. Evolving regulations: AML and Know Your Customer (KYC) regulations are continuously evolving, making it difficult for financial institutions to stay up to date with the latest requirements. Different countries have varying money laundering and verification of identity standards, which further adds to the complexity.
2. Technological barriers: Although digital verification tools are on the rise, not all customers have access to the necessary digital identification resources. This can delay the onboarding process and create frustration for customers.
3. False positives: Stringent AML systems sometimes generate false positives, flagging legitimate customers as suspicious due to minor discrepancies in data. These errors can lead to unnecessary delays in onboarding and negatively impacting customer satisfaction.
4. Privacy concerns: Verifying customer identities often requires accessing sensitive personal information. Ensuring data security while complying with strict Anti-Money Laundering requirements is another hurdle regulated businesses must navigate.

The importance of combining AML and identity verification

Incorporating electronic AML and identity verification into the customer onboarding process is no longer just about meeting legal requirements, it’s a crucial factor in enhancing customer satisfaction.

Recent research from FullCircl discovered that 70% of consumers would consider abandoning the account opening process if it took longer than 10 minutes. Long and cumbersome identity verification processes can lead to customer frustration, damaging relationships and increasing churn rates.

By combining AML verification with cutting-edge technologies like artificial intelligence and machine learning, institutions can streamline the onboarding process, reduce errors, and ensure compliance without sacrificing user experience. For example, automated systems can quickly cross-reference customer information with databases in real-time, flagging high-risk individuals while fast-tracking low-risk ones.

Additionally, improving AML verification of identity procedures allows institutions to onboard customers more efficiently while maintaining a robust risk assessment framework. Faster customer KYC processes mean quicker access to services, which not only enhances satisfaction but also strengthens the company’s reputation for being both compliant and customer focused.

Future trends for AML and identity verification

The future of AML identity verification is dynamic, with several emerging trends shaping the way financial institutions approach compliance and customer identification. Some of the most impactful trends include:

1. Increased use of AI and machine learning: Artificial intelligence is revolutionising the way AML anti-money laundering systems detect suspicious activities. By analysing patterns in customer behaviour and transactions, AI-powered systems can improve the accuracy of risk assessment and reduce the number of false positives.
2. Blockchain technology: As blockchain technology continues to evolve, its decentralised and transparent nature could transform how institutions conduct identity verification. Blockchain’s secure, immutable records could provide a more reliable means of verifying identities while reducing fraud.
3. Biometric verification: The use of biometrics like facial recognition, fingerprint scanning, and even voice recognition is becoming more prevalent in AML verification processes. Biometric data provides a more secure, efficient, and user-friendly way to confirm identities.
4. RegTech solutions: Regulatory technology (RegTech) is a fast-growing industry that focuses on automating and improving AML compliance. These solutions can help financial institutions stay ahead of changing money laundering regulations and identity verification standards, reducing the need for manual intervention and enhancing efficiency.
5. Global collaboration: As financial crime becomes increasingly global, there’s a growing need for cross-border collaboration among regulatory authorities. Financial institutions will need to adopt standardised AML identity verification practices that are recognised internationally to stay compliant and prevent fraud on a larger scale.

How FullCircl can help

FullCircl works with 500+ regulated businesses including tier 1 banks, gambling operators, neo-banks, and challenger brands to help them start smarter, to grow faster with compliance solved.

FullCircl’s clients benefit from combining AML software, KYC software, and identity verification software through a market leading orchestration platform, ensuring that compliance and customer satisfaction remains a competitive advantage and regulation headaches are avoided.

Want to learn more? Book a demo here.

In August 2023 we launched our exclusive SmartBroker facility for BIBA members. Just two months later we announced the integration of SmartBroker into the Acturis platform to deliver an even richer, more contextualised, and super connected data solution.

The facility and integration attracted a lot of attention, with BIBA hailing it as one of their most successful launches ever.

FullCircl + BIBA +  Acturis is a trifecta of success - taking the knowledge, guidance, and experience of BIBA, quantifying this into rules and data insights within FullCircl, and surfacing them to generate meaningful opportunities for growth within Acturis.  

A year on, it seems like a good opportunity to evaluate the success of this venture, and the difference it’s making to the broker community in the UK. Let’s break down the number

FullCircl broker success by numbers

• 20 BIBA members have been onboarded to the facility, most of which are operating with an engagement score of over 70.
• Generation of new opportunities is delivering an average 6.11x ROI.  
• Improvements to data quality are delivering on average 43.9x ROI.  
• Time savings are generating an average of 4.9x ROI.  
• Brokers are achieving typical renewal retention rates of 95% .
• Brokers are delivering 94% faster onboarding speeds.
• SmartBroker is delivering insights on 5.3 million companies per day into Acturis and 3 million email alerts annually, thereby helping democratise access to data
• Brokers are realising £600k+ savings on the cost of compliance.
• CPD-accredited webinars for BIBA members have their achieved all-time highest satisfaction scores of 99.64%.
• Spotting the potential to provide regional brokers with a new way to win business locally without having to rely on referrals, AVIVA worked with us to trial a new Club 100 facility. This gave brokers 6-month paid access to the platform, and demand certainly outstripped expectations. To date 110 brokers have signed up.

Why have brokers achieved so much so quickly with FullCircl?

In the last 12 months we’ve not only democratised access to data across the entire broker landscape.  Uniquely we’ve also helped them prospect with precision, deliver tailored outreach at scale, provide better underwriting submissions, increase client retention, meet compliance duties, and cultivate existing books of business efficiently and cost-effectively.  

Delving a little deeper, FullCircl SmartBroker has helped brokers in a number of key ways:

Efficiently identify and win new customers

Our connected data solution has helped brokers better understand client needs and offer tailored policies and support, as well as the chance to re-examine their total addressable market (TAM) and expand their reach both geographically and demographically. Crucially, we’ve evolved the system directly in response to broker demand. For example, in the last 12 months we’ve made SmartBroker more functional for brokers seeking to attract and retain SME business.  We’ve worked with data providers to help brokers access previously hard to find financial insights that can help them respond innovatively to unmet needs and exposures.

Automation

We’ve saved brokers considerable time by pre-populating forms and automatically enriching them with supplementary data from verified sources. This has not only improved data quality and reduced the administrative burden, but has also allowed brokers to offer faster and more accurate quotes and spend more time doing what they do best - providing advice and service that supports and protects their clients.

Faster onboarding

Our brokers are running automated screening and onboarding checks, to streamline pre-qualification and deliver seamless onboarding journeys that improve the overall customer experience, making it even easier for clients to do business with them. Not only does this reduce manual errors and improve onboarding speeds and experience, but importantly it helps meet compliance obligations.

Customer relationship management

The integration of super-connected and enriched data and insight on companies and the officers inside them into Acturis has helped brokers manage relationships, track interactions, improve in-life monitoring, deliver personalised experiences, elevate renewal rates, and expand upsell opportunities. Brokers using SmartBroker are receiving daily insights about key changes to their prospects and clients, allowing them to provide relevant support and guidance, that cements their status as a trusted advisor.

Improve relationships with underwriters

Enriched customer data is serving to significantly improve underwriting submissions, eliminating knowledge gaps and ensuring comprehensive, full, and detailed submissions every time. As a result, underwriters can assess risks more accurately, and come back with policies that are responsive to individual needs and outcomes. Win-win.

Regulatory compliance

We’ve helped brokers automate regulatory compliance, reducing the risk of penalties and ensuring brokers always cost-efficiently operate within regulatory boundaries. This has been particularly apparent when it comes to adherence with the Consumer Duty regulations and the increasing focus on customer-centric, outcomes-based products and service. Strategic use of the AI-powered tools and data analytics available within SmartBroker has helped brokers deliver a best practice approach without incurring significant financial and resource burden.  

Looking ahead to more broker success

We’re on a mission to help brokers start smarter, to grow faster with compliance solved.  

In the last 12 months we’ve shifted the paradigm of collaboration within the insurance market for the benefit of brokers. Not only are we solving current challenges, but we are also perfectly positioned to support the next generation of insurance broker success.

Don’t risk FOMO. Get in touch today to find out how we can help you drive a new era of broking success.