The decision by Noda to adopt ThetaRay’s AI solution for open banking monitoring represents a significant development in the financial industry. With open banking gaining popularity, financial institutions must have robust monitoring systems to detect and prevent financial crimes.
Today, Noda, a fintech specializing in open banking, and ThetaRay, a top supplier of AI-powered transaction monitoring technology, revealed that they are partnering to augment payment surveillance and compliance abilities on Noda’s increasingly popular platform designed for the current digital economy in Europe.
With its base in the UK, Noda is providing online retailers based in Europe a secure and immediate Open Banking payment option to accept bank payments directly from consumers instead of relying on credit cards. This one-stop solution has direct integration with banks across most European nations.
Under the deal, Noda will use ThetaRay’s advanced AI-based software as a service SONAR system for anti-money laundering (AML). This solution can identify existing and unseen financial crime risks and signals of suspicious activity at an early stage.
Noda will be given the ability to keep track of the complex and ever-changing regulatory environment and handle the difficulties related to keeping an eye on SEPA transactions through various venues and legal systems.
Lasma Gavarane serves as Noda’s Chief Compliance Officer and Money Laundering Reporting Officer.
Lasma Gavarane says:
“With ThetaRay’s advanced transaction monitoring system and our expertise in payment services and compliance, we are poised to take our business to the next level and provide even more value to our customers,”
“Together, we will be able to detect and prevent financial crimes, comply with evolving regulatory requirements, and therefore enhance the overall security and reliability of our fast and convenient payment services to customers.”
SEPA makes bank transfers of euro across member countries easier, yet financial institutions involved with the transactions lack full awareness of their customers’ profiles and activities. Utilizing AI-generated insights, ThetaRay’s system can detect any suspicious behavior that could point to financial crimes. Mark Gazit is the Chief Executive Officer of ThetaRay.
Mark Gazit says:
“Noda is an innovation leader in the European payments market as it transforms into a more competitive and more efficient network that is enabling the digital economy. The adoption of sophisticated AI technology to fight financial crime brings the trust to a payments ecosystem that serves as a fintech growth engine,”
“We are looking forward to a successful partnership with Noda to develop and grow European fintech.”
A recent report has revealed that the aggregate value of Fintechs in Europe is around €430 billion, which is higher than the total market capitalization of Europe’s seven largest listed banks.
ThetaRay’s SONAR solution, which has won awards, is based on a special type of AI that eliminates human prejudice. This grants the system the aptitude to detect irregularities and uncover unknowns beyond common practices, including original categories never seen before.
A risk-based approach is enabled by fintech and banks, which allows them to accurately pinpoint potentially fraudulent activity and construct a full profile of customers, including those with complex, cross-border financial flows. This leads to the rapid detection of existing and novel money laundering threats while reducing false positives by up to 99% compared to rules-based techniques.
ThetaRay’s AI solution represents a significant step forward in the fight against financial crime and fraud. As more financial institutions adopt similar technologies, we expect to see a more secure and transparent financial industry that provides better customer protection.
Source: Financial IT
