Cost of Bank Misconduct

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
Company News
Introducing Prove Link™ – Unlocking the Power of Identity for Any Business

To continue achieving our mission of accelerating trusted interactions on the internet, we’re proud to announce the introduction of the Prove developer self-service platform and the Prove LinkTM SDK. With these tools, it’s now faster and easier for any company to integrate our industry-leading identity technology into its brand operations.

July 16, 2024
Company News
Combating Deepfakes: Leveraging Phone-Centric Identity℠ Verification to Overcome Media-Based Vulnerabilities

Identity verification systems that depend on image or audio samples for digital customer onboarding are increasingly vulnerable to deepfake attacks.

Tim Brown
July 5, 2024
New York Passes Child Data Protection Act to Protect Kids Mental Health and Online Privacy

As the world becomes more digital, it also becomes more anonymous. While some level of anonymity has its place, it can also facilitate malicious activities such as cyberbullying, identity theft, and the spread of misinformation.

Mary Ann Miller
June 27, 2024