Ecosystem Crowd Wisdom

Regulation
Vision
Vetted repository of bank account owners
Crowd wisdom database repository
Finastra Fincom joint ecosystem
Immediate solution impacts
Generic use cases
Implemented Use case 1
Implemented Use case 2
Implemented Use case 3

We have learned from working with regulators that there is over $1.5 Trillion money laundering yearly, money from drugs, prostitution, human trafficking, terrible! Today only 1% of money laundering is stopped, we all agree we must do better, as the ability to use money is fueling these criminal enterprises. Recently new AML legislation such as US 2021 AML regulation, is encouraging supporting data sharing between banks to support the AML fight and stopping fraud, yet have not set how to do so without violating other regulations

Fincom and Finastra have developed a vanguard solution enabling data sharing and in-depth ecosystem understanding by the new developed solution which enables to compile a central completely anonymized database which pulls into it transactional information enabled by Finastra payment engine implemented in various banks and financial institutions. This information before going into the central anonymized database, is pre processed into Fincom Phonetic Fingerprint format as it is preprocessed by Fincom Entity Resolution engine the different information such as name of payer and recipient, banks and account numbers, time stamp, amount and indication if the payment went through a compliance verification. All this information is normalized and ready for extraction within the Central Anonymized Database where the information is matched, unified and mapped accomplished by Fincom Entity Resolution engine. Central Anonymized Database enables a very different vantage point view on the banking ecosystem and primarily within payments to detect and prevent money laundering and fraud, such use cases as: Multiple names on single account, Suspicious Patterns flow of funds, Ecosystem wide alerts on bad actor accounts, for example and additionally a capability for supporting ad-hoc such scoring for Buy-No-Pay-Later.

The two teams met in which Gideon Drori CEO of Fincom presented the idea he had envisioned, opening the floor for an open discussion "brainstorming" session. Decision started in outlining the technology solution and different ways and means to achieve the goals. Afterwards the discussion shifted in outlining "Use Cases'' that the solution can support/solve and tweaking of the technology solution therotcaily in order to support additional use cases if possible. Once defined the technology leads agreed on priorities and development process, and constant dialog was established between lead technology of each company Yulia Adler Finastra lead, managed the process ensuring team engagement of all parties, with weekly full team updates and huddles and as needed ad-hoc engagement to resolve any bump.

We overcame challenges as establishing a new joint team culture different from a large corporation or demands of a start-up. Resolving the "Tower of Babylon'' syndrome, as finding common language to together focus on the issue, identify the needs and resolve any open issues. Additional challenge was after understanding and defining the objectives was to develop the inner solution that will also support integration between the system, based on standard API's for future deployment into the market

We are proud of going out of the box to develop the solution, setting up a new vantage point which is looking from the ecosystem into the bank instead of the current method of looking within a bank to fight fraud and AML. In establishing this vantage point the final solution we develop that supports identifying different everyday real and common use cases of money laundering and fraud, moreover the solution can be implemented in the near future as it is based on current technologies. Additionally we identified a capability for supporting "credit scoring" and ad-hoc such scoring for Buy-No-Pay-Later as the solution based on identifiable information history and insight derived from that information, rendering a strong recommendation - supporting persons that credit score is not established.

We have learned or reminded that great inventions or solutions that will have a significant impact don't have to be revolutionary, as sometimes the bringing together well established technologies, that will work in a bit of a different manner thus developing a New Solution can have an impact as great as any invention. We also learned that many of the needed building blocks to support the fight against money laundering and fraud are readily available and there is a need to and a want to make it happen - which based on press releases, recent regulation and announcements by regulators and banks, we believe there is.

We Envision that the next stage is recruiting a regulator to set up a Sand-Bix and supporting a number of banks can participate in a real Pilot, that will prove the advantages be it in stopping fraud, money laundering or supporting non traditional banking processes. The proof is not sufficient to demonstrate the solution working but in the Pilot we will aim to show a tangible success, which will promote the adoption of the solution as a standard ecosystem deployment.

Our goal is huge yet we all must stop money laundering and fraud, support information sharing between banks, let's role out the solution improving the fight!