UnionBank’s Innovative Approach to AML Alert Management gets recognition

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Union Bank of the Philippines (UnionBank) recently received recognition at the Asian Technology Excellence Awards in the Philippines Technology Excellence Award for AI – Banking category. UnionBank’s achievement showcases its commitment to innovation and efficiency in addressing anti-money laundering (AML) challenges.

UnionBank’s notable achievement centers around its efforts to streamline AML operations. Understanding that a significant number of alerts generated by banks are false positives, UnionBank embarked on a transformative journey to revamp AML alert management by utilizing AI and Data Science.

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Their introduction of the Suspicious Transaction Report (STR) Alerts Prioritization & Auto-Disposition Model marks a significant development in AML alert handling. This model assesses alerts generated by the existing AML Alerts System, assigning scores to evaluate the authenticity and risk level of each alert. This scoring mechanism allows AML teams to focus their manual investigations on high-risk alerts and suggests automatic disposition for low-risk alerts.

UnionBank’s initiative aims to address the challenges posed by the prevalence of false positives in the banking sector’s alert generation process. The STR Alerts Prioritization & Auto-Disposition Model leverages AI capabilities to improve operational efficiency and enhance risk management. By integrating this model into AML operations, UnionBank has fundamentally transformed the way alerts are managed and risks are addressed.

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Drawing from their wealth of AML alert resolution data, UnionBank effectively employed advanced tools, including Data Science, Artificial Intelligence, and Cloud platforms, to develop and implement the STR Alerts Prioritization & Auto-Disposition Model. This innovative approach demonstrates UnionBank’s commitment to embracing cutting-edge technologies to drive substantial change in the banking industry.

Despite its recent implementation in August 2022, UnionBank’s solution has already produced impressive results. The bank has observed a 40% reduction in the number of alerts, leading to a significant decrease in the time spent on manual investigations. This success is a result of the seamless integration of Data Science, AI, and Cloud technologies, resulting in improved alert accuracy and operational efficiency.

UnionBank’s recognition at the Asian Technology Excellence Awards underscores its dedication to reshaping banking operations through innovative solutions. Their pioneering use of AI-driven models has not only optimized AML alert management but has also set a standard for leveraging technology to enhance operational excellence in the banking sector.

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Carl writes for WalasTech when he's not working full-time. Give him tips and/or leads at [email protected].