the full picture, this week – 06 December 2019

by | Dec 6, 2019 | All Blog Posts, Featured

Let us put you in the picture this week, as we round-up and react to the latest news from the financial crime compliance and technology sectors.

This time, we give our take as European Union finance ministers back plans to strengthen the bloc’s powers to combat money laundering.

Elsewhere, there’s research that suggests British businesses are missing out on the benefits of automation by not combining the right technologies.

These issues, and more from around the globe, give us plenty to dive into for your Full Picture, This Week…

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EU agrees steps towards tighter money laundering oversight

European Union finance ministers have backed plans to strengthen the bloc’s powers to combat money laundering after a series of scandals hit European banks.

They called on the European Commission to explore the possibility of transferring supervision powers to an EU body and to amend rules to strengthen coordination among national authorities.

Ministers said an EU body “with an independent structure and direct powers” over banks should be considered, reversing earlier opposition to such a move.

Despite criminal organisations frequently laundering the proceeds of their illegal activities abroad, the fight against financial crime in the EU is currently mostly dealt with by national authorities.

Read more here.

the Encompass view

This is an encouraging development in the fight against financial crime in Europe. Ministers giving their backing to strengthening powers can only be positive, especially come after high profile money laundering scandals have affected the bloc.

The entire financial services sector is under more scrutiny than ever and every organisation within it has a role to play in regaining trust. They also have a responsibility to ensure they are treating compliance-based activities as crucial to avoid falling foul of regulations.

At Encompass, we believe that automation is the only way to drive both better compliance and lower costs to customers. Not only does it streamline and simplify the process, it also makes it easier to embed compliance activities into day to day workflow across the organisation, creating a culture of compliance that brings results.

the Encompass view

This is an encouraging development in the fight against financial crime in Europe. Ministers giving their backing to strengthening powers can only be positive, especially come after high profile money laundering scandals have affected the bloc.

The entire financial services sector is under more scrutiny than ever and every organisation within it has a role to play in regaining trust. They also have a responsibility to ensure they are treating compliance-based activities as crucial to avoid falling foul of regulations.

At Encompass, we believe that automation is the only way to drive both better compliance and lower costs to customers. Not only does it streamline and simplify the process, it also makes it easier to embed compliance activities into day to day workflow across the organisation, creating a culture of compliance that brings results.

Wayne Johnson | CEO & Co-founder, Encompass

businesses missing out on automation benefits

British businesses are failing to realise the full potential of automation – because they are not combining the right technologies.

According to research, 19 in 20 businesses have deployed some form of automation, with only one in 20 using the full stack – meaning that most businesses are missing out on the “secret weapons” that could deliver the most return on investment (ROI).

3Gem surveyed 500 UK IT decision-makers, finding that Robotic Process Automation (RPA) is the least adopted, with only 24% of UK businesses investing in the technology. However, RPA is particularly strong on time to ROI, with 82% of businesses seeing a return on their investment within a year, while 30% experienced a return of at least twice what they invested.

The financial services sector led the way, with 38% of businesses investing in RPA, while manufacturing was in second place (23%).

The research also found that combining RPA with content-centric process automation drives even greater results, with 71% of businesses that have deployed both technologies growing their revenue – compared to just 37% for those that invested only in RPA.

third of millennial Brits say primary bank is a challenger

the full picture, this week - 22 November 2019 | mobile payments | Encompass blogMore than one in five UK consumers, and one in three millennial Brits, say their primary banking relationship is with one of a host of challengers to have emerged over the last decade.

Having remained largely unchallenged for a century, since the 2008 crash, Britain’s high street banks have been facing up to competition from a slew of tech-savvy upstarts.

Many of the new entrants claim to have already secured seven figure customer bases – a boast backed up by a survey of more than 2000 Brits by management consultancy outfit AT Kearney.

Of those surveyed, one in five customers – and one in three millennials – already considered their primary account to be with a challenger bank, while one in eight consumers said they prefer to use challenger banks for shopping online.

Asked why they switch to challengers, 39% cited the ease of use, 36% the ease of opening an account and 28% mentioned attractive use of technology.

news in brief

the full picture, this week | News! | Encompass blogAlmost 20% of finance professionals are unaware of the uses of blockchain and 29% have no idea what the technology is, according to research. Find out more.

Financial regulators are pushing for legal changes in order to avoid the Philippines being placed on a global monitoring list for countries with weak AML/CTF controls. Read more here.

Two people have been arrested in Zurich as part of a global AML operation. More here.

South Korea, in to move to a full-scale launch of Open Banking services later this month, having attracted 2.39 million users in a two-month pilot trial.

Dutch crypto startups are crying foul as regulators in the Netherlands look to implement the EU’s 5th Anti-Money Laundering Directive (5MLD). Find out why.

webinar – AML regtech roundup 2019

AML Regtech Roundup 2019 | Dr Henry Balani | Encompass webinarsThis year has seen changes to regulation, increased fines for non-compliance and a surge in new technology being developed to help firms with AML compliance.

Earlier this week, Dr. Henry Balani, compliance and AML specialist and academic, hosted a webinar focused on the changes in AML RegTech throughout 2019 and looked ahead to potential trends in 2020.

You can watch it here.

vote for Encompass at the British Bank Awards!

vote for Encompass at the British Bank Awards | Encompass blogWe’re delighted to have been nominated in the ‘RegTech Partner of the Year’ category at the British Bank Awards. Voting is now open, and winners will be decided by financial firms.

To make it to the list of finalists for our category, we need your help! Here’s how to vote:

  • go to the survey here
  • find question two on the survey [‘RegTech Partner of the Year’]
  • enter your winner [Encompass Corporation!]
  • follow the survey steps and fill in the boxes asking why we should win and how you would rate us
  • enter your email address

The survey is quick and easy to complete and voting for the finalists is open until Sunday 12 January 2020, so there’s plenty of time to do your bit to help us claim the award.

our key takeaways from the LegalTech Vienna and Zurich events

Reflections on Singapore Fintech Festival 2019 | Encompass blogThe spotlight has been on LegalTech in the DACH region, with events in Vienna and Zurich exploring the latest developments.

After attending both conferences, our Business Development Director, Chika Okoli, shares what some of the key speakers had to say, the main themes of discussion, and his reflections.

meet the Encompass team

The Encompass team will be out and about across the globe, participating in key industry events.

Digital payments in the UK | Thu 12 December | London

With Strong Customer Authentication due to come into force in September as part of PSD2, this event will provide an opportunity to assess the challenges and opportunities arising from PSD2 implementation. Encompass will be attending the conference which takes place in the context of rapid growth in financial technology – including Open Banking and contactless mobile payments.

View all our upcoming events here.

The world of Know Your Customer (KYC), compliance and financial crime never sleeps, and if your challenges are keeping you up at night let us help. Encompass intelligently automates information and news discovery for KYC requirements for onboarding ongoing monitoring.

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