The Nasdaq is the first electronic exchange that allowed investors to buy and sell stock on a computerized, speedy, and transparent system, without the need for a physical trading floor. Nasdaq is ranked second on the list of stock exchanges by market capitalization of shares traded, behind only the New York Stock Exchange.
Nasdaq is referring to the Nasdaq Composite Index, which, like the DJIA, is a statistical measure of a portion of the stock market. Nasdaq exchange platform, Nasdaq Nordic stock market network, and several U.S. stock and options exchanges are owned by Nasdaq Inc.
Nasdaq Exchange Group announced on Wednesday that it is launching AI technology to assist retail and commercial banks to automate anti-money laundering(AML) investigations because it expands into the financial crime software market.
Nasdaq hopes that the system can make it quicker and cheaper for banks and other financial institutions to sift through the deluge of alerts flagging possible cases of money laundering generated by bank transaction monitoring systems.
The company stated that the process of investigating alerts is currently manual, which might probably be as many as 300,000 a month, making it expensive and labor-intensive. Banks generally cast a wide net to grab illicit activity so the vast majority of these alerts end up being false.
Banks are anxious about that wide net because of the cost and Nasdaq is giving them the opportunity to reduce that cost. Whereas Nasdaq has long been a provider of market technology, including trade surveillance systems, the launch marks the exchange group’s foray into the AML sector. The banks and other financial firms are looking to automate many of their more expensive and complex back-office processes to reduce costs and increase efficiency.
Nasdaq has been thinking long and hard on how they want to go beyond trade surveillance and the product launch is strategically a launch beyond trade surveillance. The company has great ambitions in the space, said Valerie Bannert-Thurner, senior vice president and head of sell-side and buy-side solutions, market technology at Nasdaq.
Nasdaq’s new system, which was set up with UK-based start-up Caspian, assembles the data needed to conduct an AML investigation and also analyses the information using software that replicates human decision making, the company stated.
[…] AI helps banks predict future outcomes and trends. It helps banks to identify fraud and detect anti-money laundering patterns. Banking apps track financial transactions and analyze user […]