Transaction monitoring market expected to double in next 5 years
According to B2B market research firm MarketsandMarkets, the transaction monitoring market size is expected to grow from USD 8.3 billion in 2018 to USD 16.8 billion by 2023.
Driven by the need to manage KYC compliance, mitigate money laundering and counter terrorism financing (CTF) activities, comply with stringent anti-money laundering (AML) regulations and reduce corporate fraud, monitoring transaction in real-time will be a crucial capability for financial institutions, insurance companies, retailers and more.
Transaction monitoring is a key capability within the Alessa solution. It accesses transactional data in real-time and/or periodically and feeds it into the analytics platform to detect high-risk scenarios or events. Once detected, the system will allow transactions to be blocked, investigated, or recorded with no action required.
Alessa uses advanced analytics and rules-based scenarios to score the risks associated with suspicious transactions and help fraud and compliance personnel refine and prioritize investigations.
Use cases include:
Wire Transfer Screening
Alessa can be used to screen wire transfers in real-time. When the banking system initiates the request for a wire transfer, Alessa screens the sender and receiver against World-Check data and whether the transfer is to a high-risk jurisdiction. If the wire transfer is blocked, a message is returned to the banking system and the status is updated to “At Due Diligence”.
An alert is triggered and routed to the appropriate person(s). If after investigation the decision made is to release the payment, the platform sends a new message to the core banking system to update the status to “Processed”. Alessa relays the request to the payment gateway using the messaging infrastructure.
Health Insurance Claims Monitoring
For the use case where Alessa is used to identify potentially fraudulent insurance claims in real-time, first the claim management system sends the claims transactions to Alessa.
Alessa then examines the claims using its anomaly detection engine and scores the transaction based on its attributes. If the transaction is considered high-risk then a message is returned to the claims management system,the status is updated to “At Investigations” and an alert is sent to the appropriate person(s).
If after investigation the decision is made to deny the claim, the platform sends a new message to update the status to “Denied”.
About Anu Sood
Anu Sood (LinkedIn | Twitter) is the Director Marketing at CaseWare RCM and is responsible for the company’s global marketing strategy. She has over 20 years of experience in product development, product management, product marketing, corporate communications, demand generation, content marketing and strategic marketing in high-tech industries.