Consilient, which is on a mission to transform how businesses address financial crime, has launched its Federated Learning-powered financial crime detection and prevention solution to market.
The Consilient Federated Learning (FL) solution, which claims to be the first-ever FL solution for financial crime detection and prevention, enables banks and financial institutions to detect high-risk entities and behaviours by sharing insights across different data environments and organisations.
Consilient stated that sharing data across organisations or borders is not normally possible for financial institutions and regulated entities due to privacy regulations and data controls.
Whereas Consilient can support dynamic analytic insights and data privacy by moving the analytics to the data and deploying privacy-enhancing technology. Its algorithms and insights are shared, but data will never leave its environment.
With this, financial institutions and financial services can better tackle financial control and uncover unseen risks and behaviours.
FL, which is an extension of machine learning, allows Consilient to train models in dispersed data sets and then send those modules between organisations. This empowers what it labels ‘insight sharing.’
This technology is not only useful for separate organisations but can also be used in-house where data is not able to be moved or shared.
Consilient stated that for regulators, supervisors and financial intelligence units, this approach enhances oversight, enables gathering and testing of strategic intelligence and the advances of proactive supervision of regulated sectors and channels.
The platform’s “High Risk Entity” model leverages bank transaction data to create features that are equivalent to high-risk behaviours. The system flags anomalous activity beyond the bounds of expected behaviour, indicating transacitons and financial activity that require investigation.
The company’s Model Library consists of 18 Consilient models that can be used to identify high-risk and suspicious behaviours tied to money laundering and financial crime.
Consilient CEO and co-founder Gary Shiffman said, “Despite significant efforts by banks to detect criminals in their systems, they are inherently limited in their overall effectiveness because of the inability to share insights across institutions, limitations of legacy systems, volumes of ‘noise’ created by inefficient systems, and regulations.
“Consilient is the first company to introduce FL for the detection of financial crime and it is our mission for global organisations to use FL to transform how the world prevents financial crime.”
Last year, Consilient raised $3m in its seed funding round, which enabled the company to continue to enhance its technology.
In other RegTech news, Secfix raised $3.8m for its seed funding round to support its European expansion. The company helps security teams automate compliance with regulations such as ISO 27001.
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