Contributed by Lim Jing Wei, Chief FinTech Officer
The COVID-19 pandemic has accelerated the digitalization process, resulting in an even closer interconnected world as far as payments are concerned. Digitalization has enabled the rapid growth of online banking and payments connectivity that translates into convenience and speed for consumers. Unfortunately, it also creates a situation where scammers can take advantage, and many too have fallen victim to it.
Traditional processes such as incorporating static rules-based or putting in place human eyes to detect suspicious transactions are no longer enough to keep up with the scale of the digital economy worldwide.
One solution to overcome this is the use of Artificial Intelligence through machine learning algorithms. These algorithms can analyze vast amounts of data, identify patterns and trends, and make predictions about future events. This enables financial institutions to identify and prevent fraudulent activity before it occurs, rather than reacting after the fact. These could also enable financial institutions to tailor customized AI models across different segments of customers.
In fact, this is one of the key initiatives of CYS Global Remit since the start of 2022. CYS Global Remit partners with Cylynx, a Singapore-registered RegTech company that specializes in fraud analytics and transaction monitoring, to come out with an automated Machine Learning (ML) Transaction Monitoring program. We named it Transaction Monitoring Compliance (TMC) System.
The program model features a rules-based approach on historical customer data including sender's past transactions, product, reason for transfer, location of transfer and comparison against similar company profiles. This provides real-time pre-transaction monitoring and allows CYS Global Remit to identify potential red flags faster. TMC System is designed to cater to changing business needs and customer profile which CYS Global Remit believe is required to keep up with the trends of digital economy.
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