There’s a great article in this morning’s FT that touches on the tension between providing customers with a slick online experience – think easy account openings for example – and ensuring that checks and balances root out fraud. One of the key questions is: how far should FS providers automate compliance?
Cleary software can trawl data far faster and more intelligently than a human ever could. But that view captures only part of the story. The thing is, humans can have the advantage over machines in both detecting and preventing fraud. For one, human behaviour belies all sorts of powerful signals and even a short telephone conversation can greatly improve the accuracy of risk prediction metrics. Added to this, human interaction deters fraud by making it personal. For me, this points to a hybrid future where humans and robots work side by side...a theme that's far broader than compliance!
Revolut’s rapid growth and use of automated compliance checks, which make it popular with customers who can open an account in only a few seconds, could leave it vulnerable to abuse by increasingly sophisticated financial criminals.