the full picture, this week – 27 September 2019

by | Sep 27, 2019 | All Blog Posts, the full picture this week, 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 week, we hear that cloud computing, artificial intelligence (AI) and privacy rules are the three building blocks of a new digital world order.

Elsewhere, there’s good news for the UK fintech sector as London overtakes New York to become the world’s number one city for investments in firms.

These issues, and more from around the globe, give us plenty to dive into for your Full Picture, This Week… Click here to get The Full Picture, This Week sent to your inbox every Friday.

cloud, AI and privacy are the building blocks of a new digital world

Cloud computing, AI and privacy rules are the three building blocks of a new digital world order that could deliver significant economic benefits – that’s what delegates were told at SIBOS 2019 in London.

But how does an organisation decide if cloud and AI are right for them? This question was debated at the event, as discussions were also had around how IT leaders need to constantly assess the benefits of the cloud and AI in the context of the businesses they serve.

During a keynote session, Bank of England’s Victoria Cleland, Citi’s Manish Kohli, ING’s Benoit Legrand and Transferwise’s Kristo Kaarmann came together to discuss the evolution of banking and further revolutions as the importance of data grows and big tech giants make a play for the industry.

Kohli told how financial services innovation is keeping up with the pace of other industries and is now enabling commercial players to build on top of legacy infrastructure.

Legrand followed this point and stated that the customer is now at the centre of this payments, or data, revolution, adding: “This is a second life for payments. Banks have been sitting on a gold mine that is data and have been sitting around making money, not digging into this mine.”

Read more.

the Encompass view

Managing the demands of constantly growing data that surrounds and powers the financial sector should be taken seriously by IT leaders.

The evolution of AI has made it easier to process and analyse the data to extract valuable insights. Tightly coupling AI with the flexibility and seamless integration that cloud computing offers has allowed a revolution in the last decade. However, complexity in orchestration and data aggregation is still fundamental to ensuring privacy.

At Encompass, we modernise the cloud utilisation on behalf of our customers to enable smooth integration with a variety of data sources and deliver the full picture. Our global outreach to data sources, monitoring and orchestration empowers sophisticated AI algorithms and powerful analytical capabilities that reside on our cloud infrastructure.

To ensure the integrity of data and the ultimate privacy, we leverage IaC tools and processes that automate and regulate resource provisioning and change management across an estate of isolated data layers and cloud resources.

the Encompass view

Managing the demands of constantly growing data that surrounds and powers the financial sector should be taken seriously by IT leaders.

The evolution of AI has made it easier to process and analyse the data to extract valuable insights. Tightly coupling AI with the flexibility and seamless integration that cloud computing offers has allowed a revolution in the last decade. However, complexity in orchestration and data aggregation is still fundamental to ensuring privacy.

At Encompass, we modernise the cloud utilisation on behalf of our customers to enable smooth integration with a variety of data sources and deliver the full picture. Our global outreach to data sources, monitoring and orchestration empowers sophisticated AI algorithms and powerful analytical capabilities that reside on our cloud infrastructure.

To ensure the integrity of data and the ultimate privacy, we leverage IaC tools and processes that automate and regulate resource provisioning and change management across an estate of isolated data layers and cloud resources.

Firas Alsehly | Head of Cloud Engineering, Encompass

London is the world’s number one city for investments in fintech firms

London has overtaken New York to become the world’s number one city for investments in fintech firms.

In the first eight months of the year alone, London has attracted 114 investments with a record-breaking value of more than $2bn (£1.6bn), according to Innovate Partners and the mayor’s promotional agency London & Partners.

The rush of deals puts the capital in the top spot for total number of deals secured, with New York and San Francisco in second and third place. San Francisco still sits on top when it comes to total value, beating London with over $3bn of investments so far in 2019. New York took third place at $1.9bn.

“London has always been ahead of the curve and pivotal in embracing new technology and opportunities while pushing the boundaries of an existing ecosystem, to present an even better solution,” explained Laura Citron, chief executive of London & Partners.

AML laws ‘costing real estate industry millions

Implementing new Anti-Money Laundering (AML) laws has cost the real estate industry tens of millions of dollars, according to the Real Estate Institute.

A survey of 1861 real estate professionals around New Zealand found 59 per cent cited changing regulation as their top concern, whereas two years ago it was sixth on the list.

“The real estate industry has had to deal with more legislative changes in the last two years than we’ve dealt with in the five years prior,” REINZ chief executive Bindi Norwell said.

She said it involved a significant level in upskilling across the industry as well as the implementation of new technology systems and processes.

Ms Norwell added: “Given the pace of legislative change the real estate profession has had to deal with over the last two years, including AML, changes to the Residential Tenancies Act, a ban on letting fees, negative gearing, asbestos, methamphetamine and a ban on foreign buyers, it’s not surprising that regulation is top of mind right now for the industry.”

news in brief

As international institutions continue to scrutinise Latvia over past money laundering, the Latvian government has issued a report saying it has closed down 17 600 shell companies. Read more.

Fintechs could usurp banks to become the primary providers of consumer and business services, if the incumbents fail to embrace Application Programming Interfaces (APIs) as a means of reforming and reinvigorating business processes, according to Citi’s Tony McLaughlin.

How is compliance keeping pace with real-time cross-border payments? That was a topic discussed at SIBOS 2019. Find out what was said in this article.

More than one in 10 new bank accounts opened are with digital banks, as 2019 marked a “tipping point.” A report from Vocalink, a Mastercard company, showed a steady rise in the popularity of digital-only banks, with around one in three (30 per cent) of consumers aged 25 to 44 considering opening an account with an app-based challenger.

As the global race for AI leadership intensifies, India has begun to catch up when it comes to the mainstream adoption of AI-based technologies. Read more.

Iceland is reportedly set to seek to limit cash slots to reduce money laundering.

augmenting customer due diligence: the importance of a connected approach to data and technology

Customer Due Diligence (CDD) was on the agenda as Encompass, alongside Dun & Bradstreet and Dow Jones, hosted a breakfast seminar that looked at current challenges and the place of technology.

The event explored the importance of a connected approach to data and technology when conducting CDD.

Meet the Encompass team

Money 20/20

27-30 October | The Venetian, Las Vegas

Money20/20 is the doorway to the epicenter of the Payments, Banking, FinTech and Financial Services ecosystem.  This global event brings together visionaries and innovators from across the spectrum who are inventing new ways to spend, manage, save, borrow, share and protect money.

We will be attending Money 20/20 in October and would love to see you there. 

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. Driven by your internal policies, our platform automatically constructs corporate ownership structures, discovers beneficial owners, and in minutes screens all relevant entities and persons for regulatory, reputational and financial risk.