The benefits of transaction monitoring


Transaction monitoring is a huge part of compliance and fraud protection for FinTechs and neobanks. What are the key benefits of this technology?

Transaction monitoring involves monitoring and analysing financial transactions in real-time to detect and prevent fraudulent activities.

In a recent post by Flagright, the company discussed the benefits of transaction monitoring and how its no-code centralized AML compliance and fraud protection platform can help FinTechs and neobanks to improve their compliance and fraud protection efforts.

Back in the 2000s, transaction monitoring became more sophisticated from where it already was through the introduction of ML and AI technologies. These technologies, the company claims, allowed financial institutions to analyse large amounts of data and identify patterns that indicate fraudulent activities.

In recent years, transaction monitoring has become increasingly important for compliance with anti-money laundering (AML) regulations.

Flagright said, “Financial institutions are now required to monitor transactions to identify and report suspicious activities to the relevant authorities. This has led to the development of specialized transaction monitoring software and services that can help financial institutions to comply with AML regulations.

“In the fintech and neobanking industry, monitoring has become a crucial aspect to ensure compliance with regulations and to prevent money laundering and other fraudulent activities. Platforms like Flagright’s no-code centralized AML compliance and fraud protection platform offers a comprehensive set of features that can help fintechs and neobanks to improve their compliance and fraud protection efforts.”

What are the benefits of transaction monitoring? According to Flagright, the benefits of implementing a robust transaction monitoring are numerous.

These firstly include real-time fraud detection. “One of the primary benefits of monitoring is that it can help financial institutions and fintech companies to detect fraudulent activities in real-time. By monitoring and analyzing financial transactions, they can quickly identify and flag suspicious activities, which can prevent losses and protect customers’ financial information,” the firm said.

Other key benefits include improved compliance with regulatory requirements and enhanced security for financial transactions.

There is also the benefit of efficient risk management. “Transaction monitoring can help financial institutions and fintech companies to identify and manage risks associated with their business operations. This can include identifying and mitigating risks associated with money laundering, terrorist financing, and other illegal activities,” Flagright said.

Additional benefits, Flagright claims, are reduced costs associated with financial crimes and also an improved overall efficiency in financial operations.

To read the full post, click here.

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