New Pitney Bowes Screening Solution Improves Compliance and Reduces False-Positive Results for Financial Service Clients
October 03 2018 - 8:00AM
Business Wire
Automated technology expected to save financial
institutions nearly $10 Million annually in cost reduction
Pitney Bowes Inc. (NYSE: PBI), a global technology company that
provides commerce solutions in the areas of ecommerce, shipping,
mailing, and data, today announced a new screening solution to help
financial service providers more accurately verify the identities
of their customers to help achieve regulatory compliance in the
areas of sanctions screening and watch list management.
Known as Pitney Bowes Spectrum Screener, the solution has been
found to reduce the amount of false-positive detections by nearly
60 percent and deliver cost-savings of up to $10 million annually
for large-scale financial institutions. At the same time, it can
help alleviate challenging regulatory, Know Your Customer (KYC),
and customer identity compliance issues that confront the industry
today. Organizations like EY are already taking advantage of
Spectrum Screener to address compliance regulations.
“As a part of the value our financial crime managed service
delivers to clients, EY seeks to provide differentiated technology
capability that improves the overall effectiveness and risk
outcomes of our clients’ compliance processes and controls,” says
Carl E. Case III, Principal - Financial Services Office,
Ernst & Young LLP. “Technology solutions that employ graph
technology and advanced analytics, such as Pitney Bowes Spectrum
and Spectrum Screener, enable us to address many of the
industry’s challenges with false-positives caused by poor data
quality in either customer records or watch lists.”
According to a recent Aite Group report, “The AML of Tomorrow:
Here Today,” the United Nations Office of Drugs and Crimes
estimates that two to five percent of Global Domestic Product (GDP)
is laundered annually, which translates to $800 Billion-$2
Trillion. As if the responsibility for AML and detecting terrorist
financing weren’t enough, financial service providers are also on
the hook for global anti-corruptions sanctions screenings, and
reputational risks, cites the report.
Today, financial service providers spend millions in compliance
infrastructures (U.S. financial institutions each spend
approximately $15.8 Million alone), with a large portion of the
spend attributed to human capital. One bank in the Aite Group
report employs roughly 5,000 people who are tasked with
investigating these transactions and filing Suspicious Activity
Reports (SARs). Unfortunately, many systems used to detect
suspicious activities result in 95-98 percent false-positives.
“Regulators expect financial institutions to find every needle
in the haystack — false-negatives are not acceptable. This
expectation leads to an abundance of false-positives in many
current solutions,” says Julie Conroy, Research Director for Aite
Group. “Pitney Bowes Spectrum Screener is a great example of a
next-generation screening solution focused on reducing
false-positives and alleviating the investigative burden.”
Without automatic screening solutions that identify and
de-duplicate parties, financial service providers struggle to look
across all lines of the organization and determine if an entity
(person or business) is the same across various business lines.
Often, this lack of view can cause false-negative alerts, which
will ultimately result in fines if missed. Therefore, most FinServ
organizations create alerts on too many transactions, or
false-positives, creating an increased investigative burden on an
already overworked staff.
Spectrum Screener reduces the investigation burden for financial
service providers by analyzing customer data across the
organization, resolving identities and matching those identities
against cleansed sanctions lists, prohibitions, Politically Exposed
Persons (PEPs), as well as lists created internally within an
organization. Beyond customer data, Spectrum Screener combines
technologies like Natural Language Processing, advanced analytics,
and machine learning to improve overall match confidence.
“With Spectrum Screener, our initial implementations have proven
to reduce millions of dollars in operations expenses, reduce
burnout and turnover, reduce training expenses, and ultimately
improve productivity and compliance,” says Bob Guidotti, EVP and
President, Pitney Bowes Software. “We’re removing some compliance
complexity for our clients and offering the peace of mind that then
allows them to focus on investigations that pose a real
threat.”
To learn more about Pitney Bowes Spectrum Screener, visit us
online at
https://www.pitneybowes.com/us/customer-information-management/industry-solutions/spectrum-screener.html
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global technology company providing
commerce solutions that power billions of transactions. Clients
around the world, including 90 percent of the Fortune 500, rely on
the accuracy and precision delivered by Pitney Bowes solutions,
analytics, and APIs in the areas of ecommerce fulfillment, shipping
and returns; cross-border ecommerce; presort services; office
mailing and shipping; location data; and software. For nearly 100
years Pitney Bowes has been innovating and delivering technologies
that remove the complexity of getting commerce transactions
precisely right. For additional information visit Pitney Bowes, the
Craftsmen of Commerce, at www.pitneybowes.com
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version on businesswire.com: https://www.businesswire.com/news/home/20181003005074/en/
Pitney Bowes Inc.Emily Simmons, 843-467-1071Communications
DirectorEmily.simmons@pb.com
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