Ondato launches Ondato Risk Scoring

Ondato Risk Scoring is an automated tool for companies to identify and manage customer-associated risk better and faster during onboarding. The new tool reduces high acceptance and rejection error rates associated with manual AML customer risk assessment processes.

Ondato Risk Scoring delivers an advisory risk assessment that gives financial institutions a better understanding of their AML risk exposure across their customer portfolio. It shows each customer's risk score, enabling companies to make informed decisions about how to manage that risk and what additional actions to take to minimise the risk. The solution is fully integrated in the Ondato OS platform, which covers the entire customer onboarding cycle, creating risk-based management of new and existing customers.

Risk management processes

Institutions are struggling to achieve a satisfactory balance in AML risk management processes. One major cause of these difficulties is that current AML decision-making tends to rely heavily on human input and defensive box-ticking approaches to risk and is frequently not integrated into wider business processes.

Part of the challenge preventing better AML compliance is that most current risk assessment and risk management tools are still based on spreadsheets or static reporting platforms. As a result, they do not allow data to be analysed in one place and at a scale large enough to cope with the demands of growing companies or established institutions. According to the official press release, Ondato Risk Scoring eliminates the need for spreadsheets, automates the risk assessment process, and generates a more fine-grained picture of risks.

Before Ondato OS, institutions tended to have separate tools for each client onboarding step, making it complicated to manage and integrate a holistic KYC cycle and risk assessment. The platform provides process automation for greater efficiency and lower operating costs, minimising the risk of interventions and fines from regulatory authorities.