How QuantaVerse Saves Time, Money In Fight Against Financial Crime

Legacy anti-money laundering (AML) technologies — transaction monitoring systems — historically generate about a 95% false-positive rate.

That’s according to David McLaughlin, who founded QuantaVerse in 2014 to help institutions identify, stop and prevent financial crimes.

“There’s a huge false-positive rate, and every alert with a traditional TMS has to be investigated by a human,” he said. “It’s a very manual process, with lots of unfulfilling work.”

QuantaVerse filters through the noise of institutional, government, public internet and unstructured deep web data to significantly improve compliance.

“We’re the only company that is focused on the problems; we lower the number of false-positives, automate the investigations that are happening around the alerts, and we do so in a way that actually lowers the risk of the organization, by finding instances of risk that the TMS may be missing.”

Core Product Portfolio: To reduce the number of false positives and negatives, as well as streamlining the financial crime investigation process, QuantaVerse offers three core solutions.

“Our customers can consume just one, if that’s their preference, or they can consume all three — consume the platform — and get all the benefits,” McLaughlin said. 

QuantaVerse’s multifaceted financial crime monitoring, investigations and enforcement product portfolio allows organizations to efficiently comply with AML, know-your-customer and Foreign Corrupt Practices Act regulations.

“The primary preference of our clients in the market today is to consume that automated investigation capability, not mess with false-negatives or -positives, not change the rules-based engine, but just take all of those alerts coming out of a TMS, and enable the workforce to work more efficiently using our technology,” McLaughlin said. 

Use Case, Recent Developments: In light of the COVID-19 coronavirus pandemic, the digital transformation in financial crime prevention accelerated as companies looked to streamline the investigation capabilities of their remote workforces.

Firms came under pressure quickly as profits sank, McLaughlin said.

“They got this huge pressure to say: ‘OK, well, where are we? Where can we help the profitability of our organization?’”

The profitability of compliance was top of mind for organizations that, in droves, sought to replace their antiquated methodologies, opting for automated, digital solutions like QuantaVerse, he said. 

“I think the biggest impact on our company from COVID was this ramp-up in momentum since the summertime.”

The Innovation Outlook: The digital transformation in financial crime prevention will continue accelerating.

QuantaVerse has become more finite around automation, allowing lower levels of investigation more power in validating and deciding whether to push cases through further scrutiny, McLaughlin said. 

“We have created capabilities that allow level one analysts to do their jobs in less than 10 minutes, down from 30 minutes. They get a one-page report, and they just now have to read, validate and make that decision, or send cases up for further scrutiny to a more experienced analyst.”

QuantaVerse is looking to offer new markets a personalized, out-of-the-box solution, the company's founder said. 

“I think this approach that we have to reduce and automate the remaining workload, and lower the risks, is something that is applicable across multiple projects and markets.”

To learn more about QuantaVerse, click here.