QuantaVerse Reduces V&V-Triggered False Positives Created by Transaction Monitoring Systems (TMS), Slashing the Number of Unnecessary AML Investigations

AML RightSource, the leading outsourced provider of Anti-Money Laundering (“AML”), Know Your Customer (“KYC”), and Bank Secrecy Act (“BSA”) compliance solutions, has added new AI models to its QuantaVerse Financial Crime Platform. These models predict volume and value across a wider array of transaction activity profiles, fine-tuning V&V analysis and further reducing false positives.

Industry estimates suggest that close to half of the alerts generated by transaction monitoring systems (TMS) are triggered due to a V&V calculation violating a rule or threshold. TMS V&V alert thresholds are often calculated based on data like account balance, not historical transaction activity. Furthermore, these legacy models generally employ sliding window averaging that doesn’t account for variations like long-term growth or seasonality. Additional data must be considered to provide more accurate predictions across a wider variety of real-world transaction activity.

The QuantaVerse False Positive Reduction solution enhances V&V predictions by augmenting algorithmic content and broadening the number of signals against which it makes predictions. This provides higher accuracy and ensures that TMS don’t incorrectly flag innocuous transactions. False positives are therefore never even created by the TMS, significantly reducing the number of required investigations.

For example, one of the metrics that the QuantaVerse solution examines is distributions of activity over time. This considers the number of transactions and the dollar value of transactions across given time periods. Credits, debits, and other transaction types can be examined independently. The solution utilizes this ensemble of models to provide predictions using a wider variety of signal types.

One QuantaVerse customer found that V&V was triggering roughly 50% of the alerts coming from their legacy TMS. With enhanced V&V modeling, the QuantaVerse False Positive Reduction solution was able to cut V&V-related false positives in half. Effectively, QuantaVerse prevented 25% of TMS alerts from being created.

“Transaction monitoring systems are important in the fight against financial crime, but their capabilities are limited and they generate overwhelming numbers of costly false positives that divert attention away from truly suspicious cases,” explained David McLaughlin, SVP Head of Technical Integration, AML RightSource. “Accurate V&V calculations are particularly important in identifying shell corporations that can be used to facilitate corruption and tax evasion as recently exposed in the Pandora Papers and the Panama Papers prior.”

Criminals are adopting sophisticated methods to bypass detection, making it increasingly difficult to identify illegitimate companies. To identify potential front and shell companies, firms need to actively monitor transaction volumes and values, while examining clients for other high-risk indicators such as locations or stakeholders, nature of payments, economic purpose, related parties, news mentions, etc.

QuantaVerse solutions cut compliance costs and lower risk by automating every phase of the AML process. The industry’s most complete financial crime investigation platform, QuantaVerse uses RPA, AI, and machine learning to automate data gathering, identify financial crime, and document findings in order to streamline reporting. The QuantaVerse solutions are proven to help regulated entities become meaningfully more efficient with their AML investigations and effective in reducing risk by identifying financial crime missed by legacy systems and processes. To learn more, please visit: www.quantaverse.net.

Today, we’ve announced a new version of our AI-powered identity verification solution for Salesforce AppExchange, empowering Salesforce customers in financial services, insurance, healthcare, gambling, sharing economy and transportation to easily integrate remote identity verification as part of their user onboarding.  Onfido’s new connector for AppExchange allows companies to onboard customers faster and more efficiently with the ability to leverage Salesforce’s Digital Process Automation to automatically apply intelligent, rules-based logic to identity verification results. For example, a bank can auto-trigger an identity check for an account applicant to elevate the level of trust of the new account opener without them ever needing to step foot into a branch.  

Companies using any of Salesforce’s cloud environments for customer relationship management (CRM) can now simply drag-and-drop Onfido’s IDV where it is needed and view results within the platform. By adding identity checks into Salesforce, organizations can refine their identity policies and streamline workflow processes to appropriately manage a new customer leveraging results from both Onfido and other AppExchange apps. 

One company using Onfido to great effect as part of a multi-automation AppExchange process is the UK’s leading restaurant delivery service Deliveroo, which has reduced the number of clicks needed to onboard a restaurant by 30%. Deliveroo has established approximately a dozen integrations with AppExchange solutions to make its commercial processes as seamless as possible and has used Onfido to carry out over 25,000 identity checks on restaurant owners, to drive speed and velocity.

The significant growth in the adoption of digital services throughout the pandemic has increased customers’ confidence in accessing online services. A recent survey from Onfido revealed that more than half of consumers feel more comfortable online than before the pandemic, leading them to ditch shops and in-branch visits in favor of digital convenience. This shift in consumer preference has created urgency for businesses to scale up their digital onboarding capabilities  while ensuring a seamless customer experience that increases conversion rates and mitigates fraud.

With a 41% increase in identity fraud year-over-year and more first-time fraudsters appearing since the start of the pandemic, it is essential for companies to know that they are signing up legitimate customers. A recent Forrester study examined the total economic impact of Onfido, showing that a composite organization experiences benefits of up to 261% ROI and a net present value (NPV) of $9.86M, paying itself off in less than 6 months, when they implement Onfido.

Yapily, the European open banking infrastructure provider, today announces a new partnership with Sprinque, the Amsterdam-based B2B checkout platform for marketplaces and merchants, to enable business buyers to seamlessly settle invoices online.

B2B marketplaces - digital platforms that enable companies to connect with other organisations all in one place - are on the rise. With over three hundred in Europe alone, the majority have been founded within the past five years. However, while B2B marketplaces continue to disrupt how procurement is done in almost every industry, when it comes to payments, the majority rely on analogue, antiquated workflows. Not only is this extremely inefficient but it increases the risk of error and overall delays in payment processing.

Spinque has partnered with Yapily to solve this issue by seamlessly allowing B2B marketplaces and merchants to embed B2B payments into their platforms and provide flexible payment experiences for their buyers to maximize conversion. 

Partnering with Yapily, Sprinque allows merchants to easily settle invoices via a new B2B payment experience built into the Sprinque B2B Checkout, directly within the marketplace ecosystem. Harnessing Yapily’s open banking infrastructure, customers can now pay one or more outstanding invoices using their online bank account or mobile banking app. They can also pay directly from the marketplace via Sprinque’s embedded B2B checkout, by simply selecting one or multiple invoices to settle, then paying via a single log-in to their bank account.

Yapily recently completed its Series-B fundraising round, which saw it secure $51m to extend open banking globally and revolutionise payments. This partnership with Sprinque is part of Yapily’s European expansion strategy, where the company is planning to extend open banking to cover 95% of the continent by the end of the year; as well as continuing to pave the way for open finance. In the past year, Yapily has entered new markets including France and Spain while continuing to invest in the UK, Italy, and Germany.

Juan Espinosa, CEO of Sprinque said, “We couldn’t be more excited to partner with Yapily - they share our ambition to change how businesses pay online. Yapily’s connectivity and reach across Europe allows us to simplify and standardize the payment experience for business buyers, making it easier than ever for businesses to manage payments.”

Chris Scheuermann of Yapily said, “Partnering with Sprinque is very exciting for us at Yapily. As we continue to expand across Europe, simplifying payments for businesses, while offering businesses convenient, flexible checkout experiences is at the heart of what we do. Sprinque is redefining online B2B payments and it’s transforming the industry, enabling more businesses and merchants to keep pace and evolve with this digital-world. We’re excited to share this journey with them and watch as they continue to innovate the space.” 

• iwoca announces expansion of its merchant cash advance product to all businesses accepting card payments in the UK following successful launch with FundingXchange

• Research reveals that 87% of SME owners who use loan products said they believe that a revenue-based loan would be better or the same as using a term loan 

• A market-first, the revenue-based loan allows businesses accepting card payments in any industry sector to repay their loans in line with the seasonal flow of their businesses

• This unparalleled flexibility can help retail and hospitality sectors hit hard by the pandemic 

 iwoca, one of Europe’s largest small business lenders, has today announced the  expansion of its merchant cash advance product to small businesses to all businesses accepting card payments in the UK. The merchant cash advance will enable small businesses to repay their loan based on their sales and stay in control by choosing what percent of their revenue to pay. 

SMEs frustrated by lack of flexibility from other loan providers 

This product expansion comes following a successful integration with FundingXchange, launched in September, which offered revenue-based finance loans between £1,000 - £50,000 to online sellers on eBay. 

The decision to expand comes as the majority of small business owners (87%) using loan products suggest that a revenue-based loan, such as iwoca’s merchant cash advance, would be better or the same as using a term loan. The ability to change payments depending on business performance is a key benefit, with over half (55%) of SME owners surveyed by iwoca saying that a finance provider's flexibility in traditional overdraft facilities presents a challenge.

Flexible loan to benefit businesses with seasonal fluctuations 

The merchant cash advance is a flexible loan that enables businesses who experience volatile swings in demand to stay in control of their finances, and will be particularly beneficial for those businesses operating in retail, hospitality and e-commerce. This product comes at the perfect time as many businesses experience significant swings in sales over Christmas and the New Year.  

The merchant cash advance also offers flexibility to businesses affected by continued economic uncertainty, with supply chain and staffing issues making it difficult for businesses to plan. In addition, the revenue based loan can drive growth for scale-ups whose revenue growth may come months after finance is secured - an effective alternative to venture capital or private equity funding. 

Colin Goldstein, Commercial Growth Director at iwoca, said: “At iwoca, we’re transforming small business lending through brand new innovations powered by Open Banking technology. With our merchant cash advance product, SMEs across the country can now repay their loans in line with the seasonal flow of their businesses. As small businesses recover from the pandemic, iwoca will give them the flexibility they need to scale their business.” 

Since May 2020, iwoca has successfully lent close to £400 million to SMEs across the UK via the Government's Coronavirus Business Interruption Loan Scheme (CBILS). In Q1 2021 iwoca represented nearly 10% of all CBILS loan approvals by value. Most recently, iwoca has been accredited by the British Business Bank as a lender under the Recovery Loan Scheme (RLS) which will allow businesses to access loans of up to £10 million to help them recover from the pandemic. 

In June 2020 iwoca launched iwocaPay – an online buy now pay later invoice checkout to help small businesses get paid. The lender is also reaching up to 2 million businesses across the UK and Germany through its embedded lending technology, which allows businesses to access loans through a range of platforms such as accountancy software apps and digital neo-banks. iwoca recently partnered with the online therapy platform Spill to launch free mental health support – which will be available for all small business owners. Small business owners can sign up for their free video therapy session here.

As the importance of cybersecurity has increased, so has our awareness of it. Poor cybersecurity has been identified as the most pressing threat to businesses today. Issues with cybersecurity often stem from a lack of cybersecurity awareness. In fact, according to the 2020 Cyberthreat Defense Report, a lack of cybersecurity awareness was identified as the biggest detriment to an organisation’s cyber-defences.

The reasons for this lack of awareness include no training on cybersecurity and persistent misinformation. Despite more media attention than ever, there are still some common misconceptions about cybersecurity that put businesses at risk. 

Here, we bust the top myths around cybersecurity and how you can address them.

1. Cybersecurity isn’t my responsibility

IT security is still viewed as the IT team’s problem when that’s not the case at all. All employees have a responsibility to ensure the security of their business. Your people are the frontline of your defence and represent its biggest attack surface. They are the people hackers are targeting with phishing campaigns because they’re banking on a lack of security knowledge.

This myth can have serious consequences if your people don’t practise basic cybersecurity hygiene. If they don’t take care when clicking links in emails or downloading software, they could compromise your business’ security. Education is critical because your employees need to understand why cybersecurity is so important and that they have a role to play. Training will also equip them with the skills to spot threats and change their behaviour for the better.

2. Hackers don’t target small businesses

If media coverage is anything to go by, only large organisations like Yahoo, Uber and Marriott get attacked, right? 

Wrong.

This myth is particularly persistent because of mainstream news and the fact that hackers can potentially extort higher sums of money from these businesses. But the Federation of Small Businesses (FSB) reports that UK small businesses are targeted with over 10,000 cyber-attacks a day. The same report highlights widespread weak security procedures in small businesses, including a lack of formal password policies, not installing updates and not using security software.

While the financial gain from targeting enterprises is more lucrative, the stakes are higher for small businesses. Cybercriminals know this. A cyber-attack could destroy a small business and force it to close, and that’s why one small business is successfully hacked every 19 seconds in the UK. Small businesses which have a limited cybersecurity budget should tap into the knowledge of an IT support service, who can advise on the most suitable defences.

3. My passwords will keep me safe

There are still two long-held misconceptions around passwords. The first is that adding capital letters, numbers or special characters to your one-word password will make it uncrackable. This myth is perpetuated by a lot of business accounts which have these requirements. However, the real measure of password security is length. Software can crack short passwords, no matter how “complex”, in a matter of days. But the longer a password is, the more time it takes to crack. The recommendation is using a memorable phrase—from a book or song, for example—that doesn’t include special characters.

But determining a strong, (almost certainly) uncrackable password is only the first step. If the service you’re using is hacked and criminals gain access to your password, you’re still vulnerable. That’s where two-factor authentication (2FA) and multi-factor authentication (MFA) come in. These methods require you to set up an extra verification step. When you log in, you’ll be prompted to enter a security code which will be sent to your phone or even accessed via a dedicated verification app. That means if a hacker ever gets their hands on your password, they’ll still be thwarted. 

4. A basic anti-virus will be enough to protect my business

Gone are the days where your McAfee or Avast anti-virus solution will be enough to protect your business. Now, there are dedicated tools to fight against specific threats like ransomware. A synchronised approach to security, whereby your solutions all interact with one another, is generally accepted as the most robust. Your security solutions should cover your endpoint, firewall, network connections, email and more. In addition, backup and disaster recovery solutions are recommended to mitigate any potential incidents.

5. We only need to protect against hackers

While hackers pose an enormous threat to your business, you can’t ignore the possibility of malicious insiders or even staff accidents. One of the most highly-publicised accidental breaches was a Heathrow Airport staff member losing a USB stick with sensitive data on it. Luckily, the person who found it handed it in rather than using it maliciously. The company was still fined £120,000 for its “serious” failings in data protection. It’s also all-too-easy for an employee to accidentally email a spreadsheet with sensitive data outside of the company.

Equally, a disgruntled employee who has access to sensitive employee or customer information could willingly steal or share it. Locking down access to your core systems and ensuring fewer employees have access to them can help you protect against this. For accidental breaches, implement policies that state removable devices must be encrypted. You can also configure your email settings to block certain attachments from being shared outside of your organisation.

Are you or your staff members guilty of believing any of these myths? 

The former head of JP Morgan’s Americas electronic equity sales, Fischer joins as Tourmaline also adds two key operations hires to meet increasing industry demand for outsourced trading services.

Tourmaline Partners, LLC, the world’s leading outsourced trading solutions firm, today announced multiple key new hires to further strengthen its team of global trading and operations experts. Brett Fischer has joined as Managing Director, supporting business development and strengthening relationships with existing clients. In addition, Michael Maloney has joined as a Director on the firm’s U.S. operations team, and Lavan Guruparan has joined as an Associate Director on Tourmaline’s Asia-Pacific (APAC) operations team.

With 25 years of institutional experience and deep relationships on both the buy and sell side, Fischer most recently spearheaded JP Morgan's Americas electronic equity sales team. There, he led the business from outside the top ten to a top three industry ranking within four years, and advised leading hedge funds and asset managers on trade execution and trading technology strategy. Prior to JP Morgan, Brett was head of ITG’s hedge fund sales team, counseling hundreds of hedge funds during both initial launch and subsequent stages of growth. While at ITG, he also led the firm’s electronic equity business to a top three industry ranking. Fischer is based at Tourmaline’s Stamford, CT headquarters.

Commenting on the new hire, Tourmaline CEO Aaron Hantman said: “We’re excited to welcome Brett to our team as we continue to respond to growing industry demand for outsourced trading services. Brett’s leadership and his understanding of information and analytics on routing options make him a valuable resource for Tourmaline and our clients.  We’re confident his deep expertise in electronic trading will strengthen our industry-leading offering.”

Tourmaline also announced the hiring of Michael Maloney as Director, US operations, and Lavan Guruparan as Associate Director, APAC operations. Maloney was previously a Director at Apollo Global and Director of Operations at Covalis Capital, and Guruparan most recently served as a trade support analyst at NAB Asset Management. Maloney works from Tourmaline’s Stamford headquarters and Guruparan is based at the firm’s Sydney office.

“We’re very happy to have Michael and Lavan join our operations teams. As seasoned operations professionals, each brings a wealth of buy- and sell-side knowledge to Tourmaline and will further fuel our growth and expertise in this space,” said Dan Dispigna, Tourmaline COO. 

The new hires come on the heels of a tremendous growth period for Tourmaline. Having celebrated its 10^th anniversary earlier this year, the firm established a new Boston office in July 2021, further expanding its global footprint.

Tourmaline Partners provides tailor-made, outsourced and supplemental trading solutions and best-execution expertise to more than 350 institutional investment clients ranging from emerging hedge funds to trillion-dollar asset managers.

Shield selected to prominent RegTech insight Award list, making the need for its transparent compliance platform evident to financial firms

Shield, through its Proactive Surveillance capabilities, helps financial firms navigate and address an array of regulatory measures including market abuse, employee misconduct, privacy breaches and social media monitoring, out-of-the-box behavioral detection modules, AI-infused eDiscovery capabilities, and advanced correlating analytics capabilities.

“We’re honored to be recognized by such a prestigious organization like the RegTech Insight Awards, alongside some of the world’s leading innovative fintech companies,” said Iftach Drori, Head of Marketing and Investor Relations at Shield. “This selection further validates our advanced end-to-end communications platform’s impact on financial firms, and our ability to foster the needs for more visualized, quicker and easier compliance.”

In this new, work-from-anywhere environment, the usages of communication channels continue to grow. This uptick opens the door for unmonitored conversation and a major gap in regulating communication. Shield’s nano-algorithmic approach is eliminating the unknown by redefining how firms mitigate risks, improve operational efficiency, reduce compliance costs and detect the undetectable.

Made up of executives and leaders within the financial industry, the RegTech Insight Award advisory board recognized Shield as one of the best solutions, providing regulatory compliance tools for voice and mobile message channels.

“We are delighted that our RegTech Insight community of over 35,000 senior regtech specialists has voted Shield as the Best e-Comms Surveillance Solution in this highly competitive field. Shield has proven themselves to be deserving winners and we congratulate them on their success,” said Angela Wilbraham, CEO of A-Team Group, which hosts the prestigious RegTech Insight Awards USA.