Search “no-code” and you will see a list of TechCrunch articles on the 20 no-code startups that have been funded in the last week. “No-code” is the buzzword of 2021, similar to “Machine Learning” in 2010 and “Internet of Things” in 2014. However, what is no-code really, and how does this affect AML and fraud?
No-code is not a new technology, it’s a product philosophy.
The historical approach software companies take is — approach a customer, showcase the unique features about your product, and sign the contract. If a business requires customization of the software, the business typically pays professional services fees for the vendor to have a team that will build specific features for that customer.
This racks up fees to the mid-to-high hundreds of dollars per hour of professional services. However, the biggest cost is in the lack of agility for the customer to modify the software with agility to fit their needs.
In response to this, a lot of businesses decide to build in-house engineering teams focused on developing internal tools. The benefit of in-house engineering is that the company can create a highly tailored solution for their operations team, ensuring that the product actually meets the needs of these internal teams.
This again comes with its disadvantages. Engineering and product development costs are incredibly high, making this a prohibitively expensive option. Most importantly, engineering and product teams should be focused on the core product that the company is building. In-house engineering teams become a huge distraction.
That’s where no-code comes in.
No-code is a product philosophy that aims to combine the benefit of enabling a high degree of customizability that comes with in-house software with the turnkey nature of purchasing software. The goal is to truly enable an operator to customize their operations to fit the unique needs of their business, without being reliant on professional services or in-house engineering teams.
How do you use no-code platforms for fraud and AML?
Successful fraud and AML programs are not static. The logic you put in-place to catch suspicious activity has to constantly be changing, since that is the nature of fraud. Fraudsters are continuously deploying new and creative ways to get around the defenses that businesses deploy. Inability to respond with agility means high fines and fraud losses for businesses.
That’s where no-code comes in. Through no-code tools, you can easily modify the fraud and AML monitoring logic you have in place to catch suspicious activity. As you see new fraud vectors, the AML and fraud operations teams don’t have to wait on professional services teams to make modifications, or on their internal engineering teams to get their modifications on the roadmap.
Finally, no-code gives operations teams true ownership of their fraud detection and AML operations, mitigating financial and reputational losses for their businesses. The no-code revolution empowers teams of operators to assume controls that were historically gated by professional services and engineering teams. Many of the best fraud and AML solutions are beginning to use machine learning to modernize their solutions for better performance and efficiency.
We have seen significant success with companies using no-code tools to reduce fraud and AML. Unit21 customers are able to slash their fraud losses by 50% and reduce false positives by 60%. If this may be helpful for your operations, we invite you to book a demo.