Welcome back to the RegTech Supply Chain Series! This series of posts helps make sense of the RegTech ecosystem; the different sectors, what tools are available, and how they help satisfy compliance requirements and challenges. In the first two parts of the series we looked at onboarding and monitoring tools, two areas that Trulioo is very familiar with.
We have tons of regulations and technologies to consider outside of just the onboarding process. We now move on to Part 3 where we explore detection tools. As we introduced in Part 1 of this series, one way to catalogue all of these tools is by business needs, specifically classifying based on timeframes of the use of the RegTech tool.
Let’s review, what are different timeframes across a process lifecycle?
- Onboarding
Tools for the first step of signing up a customer. These are often one time or for new cases (ex. ONC, CDD, and KYC) - Monitoring
Tools for analyzing performance on an ongoing basis - Detection
Tools for flagging potential events, such as risk or fraud. These are occasional in nature but require the utmost of attention - Reporting
Tools to warehouse, organize and send data to regulators at scheduled intervals - Process Tools and Controls
Tools and controls that operate over the entire process lifecycle
Detection
After the initial onboarding and monitoring processes, compliance is not complete. There’s a necessity for detection on an ongoing basis. Detection refers to the tools for flagging potential adverse events such as risk or fraud.
There are various activities to keep track of, such as signs of risk signals and fraud flags, and various other market and transaction detection needs.
For financial institutions (FIs), detection of immediate risks is critical long after initial sign up. FIs must use detection tools to ensure fraud is not committed, or that money laundering or terrorist financing funds enter their system that could result in high risks to the financial system.
Trulioo supports the detection process after initial onboarding and monitoring, as we focus on providing the capabilities to quickly detect results for global watch list hits. We check data that a customer provides against our watchlist data sources to see if the information matches and a hit is detected. By performing these checks, FIs are then assured that they are in compliance with their regulatory obligations for this stage on the process.
Here are some other tools that are useful in the detection stage:
| Company Name | Category | Description |
| Feature Space | Fraud Detection | Adaptive behavioral analytics |
| Mitek | Fraud Detection | Mobile identity capture and verification |
| Netguardians | Fraud Detection | Audits human behavior across channels and transactions |
| Risk Ident | Fraud Detection | Intelligent protection against online fraud |
| Algorithmica Risk Management System | Stress Testing/Capital Planning | UCITS IV and Solvency II simulations |
| AlgoSave | Stress Testing/Capital Planning | Calculates expected credit losses and impairment calculations for accounting and BASEL purposes |
| Ayasdi | Stress Testing/Capital Planning | Machine learning platform able to process stress testing and capital planning initiatives |
| OS-IS | Stress Testing/Capital Planning | Calculating credit risk for stress testing scenarios |
| Percentile | Stress Testing/Capital Planning | Firm-wide data aggregation for risk simulation and reporting |
| Suade | Stress Testing/Capital Planning | Focuses on BASEL III capital requirements |
| Symetrics | Stress Testing/Capital Planning | Banking stress testing models |
| Algodynamix | Risk Management | Portfolio risk analytics that predict disruptive market events |
| AQMetrics | Risk Management | Risk monitoring solutions for funds and investment banks |
| Athena Portfolio Solutions | Risk Management | Tracks live market data to generate portfolio risk alerts |
| Global Fund Watch | Risk Management | Due diligence of fund counterparties |
| Neo RM | Risk Management | Measures risk management controls |
| Open GAMMA | Risk Management | Predicts CCP margin requirements |
| Open Risk | Risk Management | Centralized risk management dashboard |
| Promapp | Risk Management | Centralized risk management dashboard |
| Risk System | Risk Management | Regulatory risk management for funds |
| Scaled Risk | Risk Management | Big data platform informing risk management processes |
| Trade Informatics | Risk Management | Trade counterparty risk management |
| Traiana | Risk Management | Pre and post trade risk management, including credit risk |
| Visual Risk | Risk Management | Processes, analyses and displays complex data in a graphical manner for internal treasury functions |
| Algodynamix | Risk Management | Risk analytics that detects disruptive events in global financial markets and anticipates price movements |
| Algorithmica Risk Management System | Risk Management | Real-time income pricing analysis and counterparty risk |
| Corlytics | Risk Management | Database of US fines since 2009 with analytics on fine trends |
| Fintellix | Risk Management | Compliance, Risk & Analytics Products and Solutions for the Global Financial Services Industry |
| Fortia Financial Solutions (URL error) | Risk Management | Solutions for compliance management, internal control, risk management and reporting |
| Met Facilities | Risk Management | FCA regulatory hosting umbrella for funds, start-ups, fintechs and financial services firms. |
| Open Gamma | Risk Management | Tools for multi-CCP margin calculations, what-if analysis and stress testing |
| OSIS (or OS-IS) | Risk Management | Platform for credit risk analysis and credit opinions, asset quality review and stress testing |
| Percentile | Risk Management | Data management, risk management and stress testing tool |
| Provenir | Risk Management | Risk analytic and decisioning solution. |
| Scaled Risk | Risk Management | Trading analytics and risk management |
| Sybenetix | Risk Management | Solution to detect and investigate suspicious trading |
| Alyne | Cybersecurity/Data Privacy | Enhances cyber security, risk management and compliance capabilities |
| Aprivacy | Cybersecurity/Data Privacy | Secure communications control and analytics |
| DarkTrace | Cybersecurity/Data Privacy | Identifies new emerging threats in real time by detecting anomalies in the system |
| Helm | Cybersecurity/Data Privacy | Cyber security and data protection compliance assessment for fintech and regulators |
| Sysnet Global Solutions | Cybersecurity/Data Privacy | Cybersecurity management for merchants’ |
| Vigitrust | Cybersecurity/Data Privacy | Helps with info security strategy, assessments, and testing |
On the next RegTech Supply Chain post we’ll look at reporting tools; what are they, how they can help your business and a survey of suppliers.
As you can see from the list, there are many options to choose from, and the key to picking the solution that is right for your product or service is to understand your current business needs and anticipate and prepare for the regulatory challenges on the horizon.
Market Fintech conducted a RegTech Performance Report where they ranked top performing RegTech suppliers from around the world. If you’re interested in Trulioo’s approach to customer monitoring and how we can help you comply with cross-border requirements with speed, agility and scalability, check out our Product Brochures page.