Big News for Midsized Financial Institutions: Oracle Now Provides Anti-Money Laundering as a Cloud Service

John Edison
Global Head of Financial Crime and Compliance Management Products, Oracle Financial Services

Meet the New Oracle Financial Crime and Compliance Management Cloud Service

I’m pleased to share that Oracle has launched the Financial Crime and Compliance Management Cloud Service, a suite of cloud-based anti-money laundering applications for midsized financial institutions.

Over more than 20 years, Oracle has helped the world’s largest financial institutions fight money laundering. Together, we have taken this time-tested expertise and tailored it to meet the needs of financial institutions that are not quite so large. The result is a suite of applications, backed by Oracle’s world-class technology and expertise, that delivers end-to-end anti-money laundering to midsized financial institutions as an easy to manage, cost-effective service.

Why We Built the Financial Crime and Compliance Management Cloud Service

Why did we build the Oracle Financial Crime and Compliance Management Cloud Service? The answer is simple: our mission is to create a safer world by enabling financial institutions to fight money laundering. We especially want to help smaller financial institutions that are targets of bad actors and their beneficiaries.

We see a deep market need for new solutions to this problem. Compliance costs disproportionately burden smaller financial institutions, but higher prices do not necessarily lead to better outcomes. Existing anti-money laundering applications are often incomplete and lack integrated case management and reporting functionality required to streamline anti-money laundering processes. Additionally, they are often hard to work with and don’t provide the flexibility that institutions need. Combine this with the fact that smaller financial institutions have far fewer resources – in terms of both budget and headcount – than large financial institutions. Therefore, it can be challenging for midsized financial institutions to maximize efficiency and effectiveness across their anti-money laundering programs.

This is unfortunate because smaller financial institutions require robust anti-money laundering systems now more than ever. They need systems that can support their ambitious plans to grow through innovation and acquisitions, and that will protect them as the risk of money laundering increases. In short, they need access to the same world-class technology that big banks employ, but tailored for them in an easy to manage, cost-effective package. That’s where Oracle comes in.

What Makes the Financial Crime and Compliance Management Cloud Service Different

To meet the unique needs of midsized financial institutions, we built an anti-money laundering application suite that:

Increases Effectiveness Through World-Class Technology

Like larger financial institutions, smaller financial institutions find their anti-money laundering programs plagued by low detection rates and high false positives. Larger financial institutions have a range of options for tackling this problem. These include building new scenarios and machine learning models in-house, working with niche vendors to tackle specific issues, or purchasing a best-in-class, end-to-end solution (Oracle advocates for the latter). In contrast, smaller financial institutions have fewer resources to build these capabilities in-house or patch together niche solutions. Consequently, their core anti-money laundering system needs to increase detection effectiveness and accuracy on its own. Oracle Financial Crime and Compliance Management Cloud Service does this in a few key ways:

  • A continually growing catalog of ready-to-use, industry-accepted anti-money laundering scenarios: Our scenarios are gleaned from Oracle’s 20+ years of industry experience in providing anti-money laundering solutions to global financial institutions. Midsized financial institutions can be confident that their rules have been tested in the field.
  • Configurability: With the offering, midsized financial institutions can set things up exactly how they like. Our anti-money laundering applications offer out-of-box configurations to industry-approved watchlists and sanctions lists, and private lists, along with inbuilt tools for custom scenario design, analysis, threshold simulation, and tuning.
  • Out-of-box regulatory reporting templates: These templates help financial institutions comply with regulatory reporting requirements across crucial global jurisdictions.

All this is powered by a robust, industry-leading data model and the ability to process and analyze large volumes of data from internal and external sources. Midsized financial institutions can be confident that Oracle Financial Crime and Compliance Management Cloud Service’s anti-money laundering capabilities will seamlessly scale as they grow.

Boosts Investigation Efficiency

While smaller banks have ambitious goals, they also have resource constraints. Oracle Financial Crime and Compliance Management Cloud Service helps midsized banks do more with less.

With the previously mentioned improvements to effectiveness, analysts will spend less time investigating unproductive alerts. We also boost efficiency by helping streamline the investigation process:

  • Centralized case management: Our integrated case manager supports centralized investigations of customer events across business functions and the customer lifecycle with an intuitive interface. It also provides full audit history.
  • Flexible, built-in case investigation workflows and custom workflow creation: Provide a visual modeling tool for enhanced due diligence and sufficient case resolution.
  • Comprehensive screening and investigations of entity data and transactions in real time: Powered by out-of-box configurations to watchlists, sanctions lists, and private lists.

Not only do these features help smaller banks streamline investigations, but they also simplify the customer onboarding processes. A holistic view of entity risks helps institutions meet diverse KYC regulatory requirements.

Runs on the Best Cloud Infrastructure

Oracle Financial Crime and Compliance Management Cloud Service is delivered on Oracle’s Generation 2, Oracle Cloud Infrastructure (OCI). OCI beats the industry performance standards while providing security and reliability (disaster recovery, high availability across regions). These capabilities are what banks need to perform and meet regional and industry-specific anti-money laundering and compliance requirements.

By delivering anti-money laundering software as a service on OCI, we help you save time and money. Oracle Financial Crime and Compliance Management Cloud Service eliminates the need for additional hardware and middleware, eliminates installation costs, and reduces implementation costs. We also eliminate the unpredictable costs of managing, patching, and updating software and hardware. Finally, we offer subscription-based pricing that’s flexible, scalable for growth, and cost-efficient.

What You Can Do with the Financial Crime and Compliance Management Cloud Service

Oracle Financial Crime and Compliance Management Cloud Service consists of separate applications for end-to-end anti-money laundering and compliance. These applications can be used together or separately. They are pre-integrated with each other and easily integrated with other third-party or internal anti-money laundering and compliance applications. Each application has embedded case management and reporting capabilities.

Transaction Monitoring Cloud Service

Transaction Monitoring capabilities allow financial institutions to screen customers’ financial transactions, detect suspicious activities to prevent financial crime, and meet regulatory obligations and expectations. Midsized financial institutions benefit from out-of-the-box scenarios, configurability that allows users to define red flags and thresholds quickly, and single-click scenario deployment.

Regulatory Reporting Cloud Service

Regulatory Reporting features streamline internal investigations. The cloud service automates tasks so anti-money laundering professionals can file suspicious transaction or activity reports, either electronically or manually, with regulators in real-time. It helps midsized financial institutions protect sensitive data by replacing unsecured spreadsheets, emails, and documents with a secure, integrated application.

Cloud services for Know Your Customer (KYC) and Customer Screening are also coming soon.

Our Vision for Midsized Financial Institutions

With Oracle Financial Crime and Compliance Management Cloud Service, Oracle has created an end-to-end anti-money laundering application suite that provides all the capabilities and flexibility that smaller financial institutions need, delivered as an easy to manage, cost-effective service. With our focus on effectiveness and efficiency at optimal cost, we believe the suite will help midsized financial institutions stay safe, compliant, and ready for business growth.

Please message me to learn more or join the conversation by commenting below.

For more information, please visit:
Oracle Financial Crime and Compliance Management Solutions: oracle.com/aml
Oracle Financial Services: oracle.com/financial-services

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