April 22, 2010 – A study of financial service firms released today show watch list monitoring among smaller firms outpaces large firms. The survey of senior professionals with responsibility for data management at financial services companies was commissioned by DataFlux and conducted by Lodestar Research.
The study found that 56 percent of large firms (10,000+ employees) have a process to compare customers and transactions against lists of known criminals and terrorists, compared to 70 percent of smaller firms (less than 1,000 employees). Sixty-six percent of small firms have fully automated or mostly automated programs compared to 28 percent of large firms. More than half (57 percent) of respondents from small firms believe their company’s program is very effective.
“With regulatory pressure expected to increase over the next 12 months, it is important for firms to automate watch list screening,” said Tony Fisher, president and CEO of DataFlux in the announcement.
While 90 percent of organizations think watch list compliance is important, only 60 percent have a data monitoring process in place for screening transactions and customer data.
For those companies that have processes in place, only 33 percent of respondents from large firms think their company’s program for flagging suspicious or problematic transactions is “very effective.”
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