ITFA’s FCCi Launch a New Paper “Advanced Technology Operationalisation Framework for Financial Institutions & Vendors”

The paper is entitled “Advanced Technology Operationalisation Framework for Financial Institutions & Vendors” and was authored by Elizaveta Savinykh and Aurelia Bucicoiu. 

We are delighted to share a new guidance paper on the operationalisation of technology by financial institutions & vendors. This paper was developed by members of ITFA’s Financial Crime Compliance initiative (FCCi) which was established a year ago by ITFA’s Fintech Committee.

The paper outlines a common framework for financial institutions (FIs) and vendors for the operationalisation of advanced technology, such as artificial intelligence (AI) and machine learning (ML), as well as sophisticated deterministic rules-based models. The proposed framework consists of five guiding principles with an overview of how these principles should be embedded in the advanced technology deployment lifecycle. The adoption of this framework by both FIs and vendors is expected to lead to stronger model risk management (MRM) outcomes while also increasing vendor competitiveness, efficiency, and reputation and enabling FIs to strengthen governance, enhance transparency, and accelerate adoption of new technologies.

The paper usefully includes appendices with questionnaires and data-mapping templates which can be used by members to assist in the implementation of new technologies and systems.

The paper will be presented during our next FCC Initiative in-person seminar that we aim to organise for trade compliance specialists in November. In the meantime, please don’t hesitate to join our group calls and to engage with FCCi co-chairs, Ben Arber and Graham Baldock, or with our Fintech Committee chair, André Casterman.

The views expressed by the authors in this publication do not represent their employers or any agency. Any content should not be interpreted in any capacity as regulatory guidance, recommendations, or interpretations of law. Such expressed views are to be considered individual opinions and perspectives.