Napier AI, a RegTech enterprise providing an array of compliance solutions and services, has conducted an investigation regarding the necessity of NextGen screening for rapid payments.

The Critical Requirement for Pre-Sanctions Screening in the Face of Growing Immediate Payments

The exponential expansion of immediate payments, which is predicted to increase from 1.3 trillion transactions in 2023 to an astonishing 2.3 trillion by 2027, is already posing a challenge to financial institutions. Significant issues in operational scalability and regulatory compliance are brought about by this increase, which is especially noticeable in the Asia Pacific area, Europe, and North America. These challenges are further compounded by the use of antiquated manual and legacy technologies.

The core of the issue is the complex strategies that criminals use to avoid detection, which makes a strong system necessary to minimize false positives while accurately detecting real threats. When it comes to handling name screening complexity like misspellings, numerous last names, and phonetic similarities, legacy solutions are inadequate. NextGen Screening, driven by AI and machine learning, more accurately solves these problems.

A Novel Era in Risk Management and Name Matching

A robust name-matching engine that makes use of a variety of similarity algorithms is at the core of NextGen Screening, ensuring precise identification in a variety of cultural situations. This reduces false positives by up to 90% and adjusts to global banking threats by taking into account spelling and naming convention variances that are specific to different cultures.

Solutions from NextGen go beyond simple name matching. They have real-time screening features, which are crucial in the quick-paced financial world of today. These technologies shorten the time between client acquisition and risk detection by providing real-time analysis of consumers against regularly updated lists. This facilitates fast onboarding and risk assessment.

Using Cloud Technology to Increase Flexibility and Compliance

NextGen solutions are cloud-native and adhere to strict compliance requirements like ISO 27001 and SOC 2, realizing the need for both security and flexibility. Moreover, they facilitate low-code environments, which enable FCC teams to customize workflows, rules, and dashboards to meet their unique requirements.

Because NextGen systems provide explainable AI solutions, they stand out as regulatory authorities throughout the world push for the transparent use of AI in compliance procedures. These guarantee that AI complements human judgment rather than takes its place, in line with international regulatory standards, and they also give compliance teams with unambiguous justifications for actions.

The necessity for updated solutions is highlighted by the change from seeing screening concerns as merely compliance issues to realizing they are essential components of the customer experience. NextGen Screening raises the bar in the battle against financial crime in the digital payments ecosystem by utilizing AI to turn these difficulties into chances to improve customer happiness and compliance.