ClickCease

Cost of Bank Misconduct

Prove
September 14, 2021

The cost of misconduct is defined here as costs borne by banks in connection with imposed penalties, paid settlements, costs of regulatory proceedings, customer compensation, and other relevant costs.

The highest fines result from operational risks, a clearly addressable area for RegTech. Many regulators have been using a number of surveillance software, which combine real-time data and historical trends to track market irregularities and misconduct like market abuse, manipulation, money laundering, rogue trading, and insider trading across asset classes and markets. Many banks use these tools as a standard risk management practice. However, the use of AI/ML in RegTech solutions by various startups and incumbent GRC solution providers provides an opportunity for banks to address these areas of concern more efficiently.

Handling compliance issues is, by nature, more complicated with agents. This is reinforced by the amounts of fines banks have had to pay for misselling. However, the new technologies, when combined, can lead to exciting solutions. E.g., the combination of customer-facing technology like tablet banking, vast amounts of data available about existing and prospective customers, real time analysis, and compliance solutions can help banks ensure on a near real time basis that suitable products are sold to customers.


To learn about Prove’s identity solutions and how to accelerate revenue while mitigating fraud, schedule a demo today.

Keep reading

See all blogs
Developer Blogs
Prove Pre-Fill®: Simplifying Identity Verification for Faster App Integrations

Learn how Prove Pre-Fill® streamlines user onboarding by auto-filling verified personal information, improving user experience, and mitigating fraud.

Nicholas Dewald
December 17, 2024
Developer Blogs
Blog
How Leading Digital Marketplaces Use Identity Verification to Create an Ecosystem of Trust

Because gig economy companies, digital marketplaces, and online platforms increasingly connect users for real-world interactions, identity verification is essential to ensure safety and trust.

Jennifer Chang
December 16, 2024
Blog
How Identity Verification is Driving Better Onboarding and Customer Enablement

The stakes for businesses in ensuring trust and security in digital interactions are higher than ever.

Kelley Vallone
December 4, 2024