EXCLUSIVE – Financial crime detecting platform QuantaVerse has added a new AI-based service to allow its financial institutions and banking clients better detect fraud and other crimes through audit investigations, as these crimes continue to be a major concern for banks and non-banks alike.

The new CAE (Chief Audit Executive) Checkup service unveiled today uses the startup’s AI Financial Crime Platform to analyze data and detect insider threats, bribery, corruption, money laundering, fraud, terrorism financing, and third-party risks.

This can be done without having the audit team manual create models and study samples for anomalies to catch financial misbehavior.

“With this new technology, audit departments can look at the entire transaction history of the year to spot anomalies,” David McLaughlin, CEO and founder of QuantaVerse, told Bank Innovation. “That not only reduces risks, but also saves these internal audit teams resources and time.”

The AI service analyzes data it gathers from core accounting, core banking, travel and expense reporting and vendor servicing, trade/export to pinpoint irregularities and “anomalous data patterns related to both known and not yet identified financial crime typologies,” McLaughlin explained.

Given that security issues don’t seem to be going anywhere in 2018, QuantaVerse is working on other features and products in this space. One technology that it is paying close attention to is blockchain, and its applications particularly in the KYC space. There might even be a deal in the pipeline, but McLaughlin could not disclose more.

“Cybercrime was certainly a big concern this year, and concern around it will continue in 2018,” McLaughlin said. “Fraud is a hit to a company’s bottom-line, and when it comes to AML (anti-money-laundering), we are seeing more and more regulators holding C-level personally accountable for these crimes. We have seen that in the case of MoneyGram. No one wants to be in that position and to reduce these risks and crimes is where AI and ML technologies is really going to make a big difference.”

Based in Wayne, Pennsylvania, QuantaVerse was founded three years ago to help banks and other financial institutions combat are reduce fraud and money laundering as well as comply with KYC (Know Your Customer) and FCPA (Foreign Corrupt Practices Act). Over the past few years, the company has extended its services to non-FIs. The company uses Artificial Intelligence and Machine Learning.

To learn more about the latest developments in security and artificial learning, join us on March 5-6, 2018 at the Parc 55 in San Francisco for Bank Innovation 2018. Click here to register.