Most people see blockchain technology as a way to reduce costs in the financial ecosystem. While it is certainly true Bitcoin technology can help institutions save a lot of money, there are other technologies which can be beneficial as well. Machine learning can help reduce costs on transaction monitoring, which is quite an interesting strategy to consider.
Regardless of how people want to look at things, the financial world will be undergoing some changes shortly. Fighting crime, money laundering, and terrorism financing all hinges on new technology and digitization. Using blockchain technology to achieve these goals is only a logical conclusion.
Improving Transaction Monitoring Processes
At the same time, it is important to keep an eye on other emerging technologies. Machine learning can play a significant role in automating the future of finance, especially when transaction monitoring is concerned. That is, assuming financial institutions can overcome the challenges associated with this process.
Up until this point, a lot of false positives have been generated as far as fraud prevention is concerned. Transaction monitoring is not as easy as it may sound, as it is difficult to determine illicit patterns. Coming up with new and accurate solutions is direly needed, but there is only so much the human element can do.
Ensuring the accuracy of data, as well as streamlining downstream reporting for transaction monitoring, can benefit from machine learning. Since most companies and enterprises use multiple systems for different products, the results need to be consistent across all platforms.
Automating these efforts seems to be the only right way forward in this day and age. The transaction monitoring industry is particularly ripe for automation, even more so than other financial industries. Machine learning offers a robust solution in this regard, and the software can learn from its mistakes moving forward. In the long run, this should reduce the risk of error.
Combining machine learning with blockchain technology for transaction monitoring could lead to a very potent combination. With the transparent and real-time nature of blockchain-based transactions, and using machine learning to monitor everything, the number of false reports should eventually be reduced to zero.
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