Effectiveness and Efficiency in Fuzzy Screening
An intelligent monitoring system optimizes cost and risk at the same time
Fuzzy matching means that it should still be possible to identify risky transactions even if the name in the transaction does not exactly match the name on the sanctions list. A fuzzy search always produces more hits than an exact search. Non-risky false positives increase the workload in payment and compliance teams and lead to a trade-off between effectiveness and efficiency in payment screening.
- Effectiveness = As many risky transactions as possible can be found
- Efficiency = The least possible transactions that, on closer inspection, turn out to be innocuous can be found
By using ACTICO’s intelligent monitoring system, VP Bank Group managed to overcome this conflict of goals. Since the system was implemented, it was able to continuously reduce the hit volume and increase the hit quality.
The above average efficiency of the ACTICO Machine Learning model was confirmed during a benchmarking exercise.