Tools & Platforms
Why AI and Blockchain Are About to Transform Compliance
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Any fintech founder will tell you that compliance is important — that’s because it is. But in today’s world of unparalleled financial innovation, whole new currencies, entirely new payment methods and borderless money, compliance is not nearly the most exciting topic.
For money to move, however, it needs to be compliant. Whether we like it or not, compliance is a necessary consideration that, if done incorrectly, could result in hefty fines.
It’s, therefore, no surprise that organizations continuously find ways to delegate compliance responsibility. Realistically, this is where most major banks that have received headline-worthy fines for non-compliance have faltered. It’s also no surprise that, as an industry, we’ve found ways for AI to streamline these processes for us.
The fact of the matter is that compliance is made simpler through the integration of artificial intelligence technology. But the real promise of compliance innovation isn’t just the application of artificial intelligence; it’s the integration of blockchain technology and tokenization — technology that isn’t being widely used yet in the traditional finance industry.
Achieving compliance with AI
When you boil fintech compliance down to its fundamental principles, it rests on thorough AML (anti-money laundering) and KYC (know your customer) screenings. These protocols have been in place since the dawn of financial record-keeping requirements in the 1970s and have been compulsory for organizations ever since.
AML and KYC processes involve heavy levels of paperwork; rigorous background checks are required of banking customers and vendors, and a meticulous eye on transaction activity must be maintained constantly to make sure no suspicious or illegitimate activity is processed.
It’s these tedious and time-consuming processes that are the most automatable through the application of AI. AI models are able to detect anomalies in transaction activity on a 24/7 basis to quickly flag and respond to suspicious activity. The promise and realization of real-time compliance monitoring have a positive impact on fintech’s ability to keep up with compliance requirements. A diversion away from reliance on human monitoring leaves much less room for error and saves company resources, too.
AI is also able to efficiently cross-reference user applications with requirements and provide the necessary approvals for customers to be onboarded quickly. More than that, when routine re-verification is required, AI is able to automate this to facilitate KYC renewal checks automatically — streamlining the process and fulfilling the requirement in the background.
The next level of compliance
But if we look even beyond AI, there’s a new and exciting wave of compliance technology on the horizon that will further transform the way fintechs and broader industries are able to follow compliance requirements. Blockchain technology, as it continues to revolutionize finance as we know it through the advent of regulated stablecoins, CBDCs and broader cryptocurrencies, will eventually infiltrate wider operations in the fintech sector, including compliance.
It’s the core principles of blockchain technology, such as tokenized information, immutable ledgers and private/public cryptography that make it such a game-changer for compliance.
The concept of tokenization doesn’t just apply to assets; tokenizing information allows companies to translate personal identifiable information (PII) — critical information for the KYC and AML screening process — into encrypted code, which can be shared between financial organizations and vendors as a means of verifying someone’s identity and therefore the transaction.
The benefit of tokenizing the information is that personal information can be verified from one organization to another without revealing PII. It removes the need for constant data-sharing requests while preserving the data’s privacy and integrity.
Related: 6 Ways Automation Can Eliminate Your Company’s Compliance Risks
All of this is performed on an immutable ledger. That is, a record that is unchangeable and permanent, a hallmark of transparency that complies with requirements for regulatory oversight and audit processes. The digitization of this ledger propels financial institutions out of manual record-keeping processes and into a world where transaction information is more standardized, accessible and transparent.
This technology is already being implemented today and will continue to redefine how organizations treat and achieve compliance moving further into the future. AI and blockchain technology in themselves drive significant impact on facilitating compliant transactions, and together, the benefits scale dramatically.
When we think of compliance, many people still think of a drawn-out, tedious process, but AI and blockchain technology will soon say goodbye to that perception, ushering in a new era of efficiency, accuracy and automation — and it’s about time.
Any fintech founder will tell you that compliance is important — that’s because it is. But in today’s world of unparalleled financial innovation, whole new currencies, entirely new payment methods and borderless money, compliance is not nearly the most exciting topic.
For money to move, however, it needs to be compliant. Whether we like it or not, compliance is a necessary consideration that, if done incorrectly, could result in hefty fines.
It’s, therefore, no surprise that organizations continuously find ways to delegate compliance responsibility. Realistically, this is where most major banks that have received headline-worthy fines for non-compliance have faltered. It’s also no surprise that, as an industry, we’ve found ways for AI to streamline these processes for us.
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Tools & Platforms
DataBahn.ai Announces New Chief Security and Strategy Officer and Two New Sales Leaders » Dallas Innovates
Left to right: Preston Wood, Payman Faed, and Trevor Crompton [Photos: DataBahn]
DataBahn.ai has appointed Preston Wood as chief security and strategy officer of the Dallas-based provider of a security-native data pipeline platform built for modern enterprise workloads.
Wood brings 25 years of leadership experience in cybersecurity to his new role. He will help drive DataBahn’s mission to transform security data management and enable intelligent automation across global enterprises, the company said.
“I’ve always believed that security and IT teams need the right data, at the right time—enriched with context and real-time analytics—to make smarter, faster decisions,” Wood said in a statement. “DataBahn’s platform is uniquely positioned to solve persistent challenges in data discovery, ingestion, and real-time visibility. I’m excited to join a team so deeply focused on customer success and innovation, and I look forward to helping advance DataBahn’s mission to deliver secure, intelligent, and highly scalable data solutions.”
Wood has served as a three-time chief information security officer and two-time chief technology officer at major financial institutions, including Zions Bancorporation, Bank of the West, and City National Bank. The company said that Wood is known for aligning security and technology strategies with business goals, and he has led the development of robust security frameworks, real-time threat detection programs, and advanced analytics initiatives.
At DataBahn.ai, Wood will partner with engineering and product teams to expand the platform’s strategic vision and deepen customer relationships, the company said.
Wood will lead the development of next-generation solutions, such as intelligent, AI-powered Data Broker workflows, that bring automation, context, and precision to enterprise-scale data orchestration, the company said. DataBahn said that Wood will draw on his dual experience as CISO and CTO in serving a dual role: evangelizing DataBahn’s innovation to enterprise customers while channeling next-generation customer requirements back into the product roadmap.
Sales leadership additions
In addition to Wood, DataBahn.ai said it strengthened its go-to-market capabilities with two key sales leadership appointments.
Payman Faed joins as SVP of sales, West, bringing over 15 years of enterprise cybersecurity sales and leadership experience. He has held senior roles at leading MDR and SIEM providers, including Lumifi and Castra. Faed is recognized for building high-performing teams and scaling partner-first go-to-market strategies, the company said.
At DataBahn, Faed will oversee strategic accounts across the Western U.S., accelerate national expansion, and lead a team of account executives focused on customer value and revenue growth.
Trevor Crompton has been appointed vice president of sales, EMEA. Crompton has more than 30 years in the IT industry—nearly half spent building and leading startup organizations across Europe, the Middle East, and Africa—and he brings deep expertise in helping security professionals gain visibility into complex data environments.
At DataBahn.ai, Crompton will lead the company’s expansion in EMEA, helping customers address growing data complexity while reducing storage costs and simplifying operations.
“With the addition of Preston, Payman, and Trevor, we’re assembling a powerhouse leadership team that combines technical excellence, deep customer empathy, and proven go-to-market execution,” Nanda Santhana, co-founder and CEO of DataBahn.ai, said in a statement. “Their collective experience across security, data management, and global GTM strategy positions us to accelerate our growth and deliver even greater value to enterprises worldwide.”
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Sheriff T.K. Waters discusses AI facial recognition technology use – Action News Jax
Tools & Platforms
California IT Leaders to Talk AI, Security and More at State of Technology
On Aug. 7, IT leaders from across the California state enterprise will gather to talk tech at the annual State of Technology — California Industry Forum.
The event will feature several California tech leaders, including:
The one-day event will cover subjects including procurement, innovation, artificial intelligence and cybersecurity.
Joe Morris, chief innovation officer for the Center for Digital Government*, will give a breakdown of the California budget.
Industry Insider — California members will receive a discount on registration. Check-in begins at 12:30 p.m., and the event ends at 5:15 p.m. The event will take place at Hilton Sacramento Arden West. For questions or registration, contact Brad Loebs.
*The Center for Digital Government is part of e.Republic, Industry Insider — California’s parent company.
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