Blockchain and AI: A financial compliance revolution in 2024
The financial sector confronts more complex compliance issues in 2024. Institutions manage complex processes that increase expenses and security threats. However, blockchain and AI offer a novel way to optimise these processes. This article discusses compliance issues and how Wecan Group's Wecan Comply product is changing them.
An increasingly complicated financial environment has made compliance a serious challenge for institutions. However, various obstacles make these operations expensive and inefficient.
The lack of standardised methods hinders compliance. Each institution may have its own data gathering and administration system, diluting vital data. Emailing sensitive papers like IDs puts banks at risk. Since data is often replicated or distributed, this disorder makes it hard to trust its security and authenticity.
Customer data management, especially KYC and KYB processes, is also complicated. Information collection methods vary each bank, making processes unstandardised and incompatible. This absence of harmonisation hinders information sharing and multiplies methods for similar data. Although comprehensive standardisation is difficult, KYC process improvement is essential.
All these inefficiencies raise compliance expenses high. These expenses can reach tens of millions for large organisations. This complexity also burdens front-office teams, who should be generating money but are often bogged down in compliance-related administrative activities.
Blockchain and AI can transform financial compliance despite these hurdles.
These issues can be solved via blockchain. It ensures data traceability. Data integrity is strengthened by recording and verifying every action. Transparency lets institutions prove regulatory compliance. The “Golden Copy” approach creates a unique, safe, and audited data copy. This reduces duplication and ensures stakeholders get accurate information.
Artificial intelligence in compliance processes expands options. Many jobs can be automated with AI, minimising errors. KYC data analysis can be automated to quickly validate consumer information. This automation cuts sensitive data management time. Thus, teams can concentrate on strategic and revenue-generating tasks. AI can also spot data trends humans may miss, improving fraud detection.
Blockchain also aids financial institution coordination. Decentralised databases allow banks to securely and transparently communicate data. This boosts compliance and industry cooperation. Thus, institutions can share information while protecting data to fight money laundering and other crimes.
Wecan Group is leading this shift as a secure data management leader. Wecan Comply, the company's main solution, is revolutionising compliance for over 100 financial institutions, including major Swiss private banks.
Wecan Comply simplifies compliance management and standardises and secures data for institutions. Blockchain makes data safe and accessible, making it easier to administer.
Wecan Group plans to include AI into its products. This will help AI to reconcile bank data even with multiple KYC forms. AI will also analyse and standardise data, improving structure administration.
Wecan Group will revolutionise financial institution compliance with blockchain and AI. Wecan Comply solves compliance problems that were once unsolvable.
In conclusion, blockchain and AI are revolutionising finance. With Wecan Comply, Wecan Group is improving compliance management security, efficiency, and standardisation. These technologies may help banks and customers meet regulatory requirements and build confidence in a complicated marketplace.