In a modern economy, the most important costs are transaction costs. And the cost of compliance is fast becoming a major tax on financial businesses. Deloitte has put the cost of regulatory reporting in the banking industry alone at 10 per cent of operating costs, or €230 billion a year. LexisNexis has estimated the cost of running KYC, AML, CFT and sanctions screening checks at US$115 billion a year across North America and just five countries in western Europe. What drives these costs is the same as what could mitigate them: data. If banks, asset managers, brokerage firms, wealth managers and insurers could source, normalise and integrate their own data into a single view of the client, and marry it to external sources of data as well, the cost of compliance could fall dramatically. One company which believes it can help to make that happen is Identitii, a RegTech company set up to help companies automate regulatory reporting. Significantly, it is now extending its reach into financial crime. Dominic Hobson, co-founder of Future of Finance, spoke to Joe Higginson, chief commercial officer at Identitii, who joined the company in 2021, having spent most of his career in the payments industry.

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