We recently had the pleasure of speaking with Jyske Bank TV during Nordic Fintech Week about the emerging challenges and solutions in financial crime prevention. Lucinity's CEO, Guðmundur Kristjánsson (GK), delved into various topics, ranging from the inefficiencies of traditional prevention software in banks to the role of community vs. vertical approaches in fighting financial crime.
The Status Quo Isn't Enough
During the interview, GK emphasized that all banks have some sort of prevention software—whether for fraud or Anti-Money Laundering (AML). While these systems are designed to create a safer financial system, they often generate an overwhelming number of false positives. This "noise" can make it incredibly difficult for financial crime analysts and investigators to focus on the most pressing cases, making the entire system less effective than it could be.
Introducing the Luci Copilot: Your AI Companion in Financial Crime Prevention
To tackle this issue head-on, Lucinity employs an AI-driven approach. We collaborate with various transaction monitoring and fraud vendors, collecting the alerts they generate. "What makes us stand apart," GK stated, "is our latest technology, the Luci Copilot. It uses generative AI to guide human reviewers through the complex landscape of financial crime." This represents one of the most significant technological advancements in the last two decades. Instead of just inundating human analysts with data, the Luci Copilot helps them decipher it, making their jobs easier and the financial system safer.
The Importance of Community-Based Approaches
Another focal point of the conversation was the need for a more community-based approach to fighting financial crime. Currently, much of the prevention work is carried out vertically within each institution, with each bank asking, "Is this money laundering?" GK highlighted the flaws in this isolated approach by noting that "criminals don't have loyalty cards to one bank. They distribute their activities across multiple institutions."
With this in mind, Lucinity has collaborated with the Bank for International Settlements (BIS) Innovation Hub Nordic Centre on Project Aurora, aimed at fostering better collaboration between banks and regulators without compromising personal data. As GK put it, "The dream is to create a system where both banks and regulators can work together on a community level, yet still protect individuals' privacy."
Charting a Path Forward
As we continue to navigate the intricacies of financial crime, Lucinity is committed to being at the forefront of innovative solutions. Our conversation with Jyske Bank TV at Nordic Fintech Week affirmed the industry's need for disruptive technologies and collaborative strategies.
We would like to thank Jyske Bank TV and Nordic Fintech Week for giving us the opportunity to share our vision and discuss these important challenges and opportunities within the FinCrime industry.
Watch the full video here: