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Silent Eight’s Markiewicz: "Costs force fighting fraud to shift from people to AI"
Silent Eight CEO Martin Markiewicz sees AI as a way for banks to arm themselves with better weapons to prevent financial crime

January 10, 2019 | Richard Hartung
  • While banks have tools in place to fight financial crime, many are manual and expensive
  • Using AI-based tools can help banks escape the spiral of escalating costs
  • While returns may only become visible during high-profile events such as investigations, banks are also calculating ROI and finding positive payback

                Banks are doing what needs to be done to prevent money laundering and fight financial crime, said Silent Eight CEO Martin Markiewicz. “The way they do this stuff is modern. Systems are built around rules-based engines. You put in manual work flows, you use people, you try to sort it out.”

                What many banks have been doing to deal with fraud, Markiewicz said, is to use rules-based systems, many of which were developed “a long time ago”. The challenge, Markiewicz said, is that these supposedly-modern systems “were designed a long time ago, before AI started being useful. There is a lot of manual effort around fighting financial crime.” Even though the systems may seem modern, they require an ever-expanding pool of people to run them and they’re not fully dealing with the even-more-advanced tools criminal that use. The result, he explained, is that “fighting financial crime costs more and more every year. The manual solutions are not scalable. If you have a thousand people and the world changes, doubling the scheme and hiring an extra thousand people is not easy to do. The process comes with higher costs. They are flagging more, preventing bad situations, at a cost. The better they get, the more everything costs.”

                A preferable alternative to escape from this spiral, Markiewicz believes, is using cutting-edge technology. “For the banks to keep up, you have to arm yourself with better weapons. You want to do this in a way that you are still profitable. The...

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Keywords: Money Laundering, Financial Crime, Technology