Prompted by the COVID-19 pandemic, the financial services industry, like all industries, had no choice but to come up with new and innovative ways not only to interact with people but also continue to conduct site visits, even in the face of stay-at-home orders and global travel restrictions. So, it’s not surprising 100 percent of respondents to a recent global banking study conducted by FinTech research firm Burnmark, in partnership with RegTech provider CUBE Global, called 2020 “a year of major transformation for their organization.”
Nor is it surprising 93 percent of respondents across the 160 global banks and financial institutions surveyed said their organizations launched a digital product or digital service between January 2020 and March 2021. What is more telling is how they are using these alternative data and advanced analytics to reduce their compliance risks.
Specifically, the top three types of alternative data sources being used today are geolocation data (cited by 80 percent of respondents), phone usage data, and spending patterns (each 60 percent). Other common alternative sources are biometric data, psychometric data, and social media data (each 40…
