As concerns around financial crime escalate, financial institutions and regulators are placing greater emphasis on combined financial crime risk and anti-money laundering (FRAML) solutions. For financial institutions, the benefits of an integrated FRAML platform include improved capabilities, collaboration, cost-effectiveness and economies of scale. And, by merging siloed teams, firms can boost operational efficiency and optimise risk management, which might help to explain FRAML’s growing popularity.
Financial institutions are taking several approaches to FRAML, notably managed services, orchestration and component solutions. Some are even restructuring their organisations to align FRAML solutions with increasingly sophisticated customer journeys. Machine learning tools are also being used to automate many tasks involved in FRAML compliance and solutions, and could revolutionise this space. Vendors, meanwhile, are broadly adopting four categories of approach: managed services, packaged solutions, platform solutions and data- and analytics-focused FRAML.
As a standalone packaged solution, FRAML will remain a core component in organisations’…
