Consilient and Harex InfoTech Partner to Combat Financial Crime in South Korea
Consilient, a fintech company, has partnered with Harex InfoTech to transform the fight against financial crime in South Korea. The partnership between the two companies forms a US-Korean AI technology alliance, which aims to enhance the effectiveness and efficiency of Korean financial institutions in combating financial crime.
The Outdated Methods for Protecting Financial Systems
The current technologies and methods for protecting the financial system are outdated, inefficient, and largely ineffective. The detection of financial crime globally needs a fundamental change, and Consilient aims to transform this with its ground-breaking FL-based solution to the South Korean market.
With the partnership, the two companies will use federated learning (FL), a revolutionary form of artificial intelligence (AI), to transform business processes and enable dynamic risk management to prevent financial crime in the South Korean market.
The Signing of the Memorandum of Understanding
The Consilient and Harex InfoTech partnership were announced during the Republic of Korea President Yoon Suk Yeol’s state visit to the United States. The MOU was signed on April 25, 2023, at the Korea-US Global “The Night of Global K-SMEs” held by the Korean Ministry of SMEs and Start-ups in Washington D.C.
During the event, President Yoon highlighted the importance of the cooperation extending beyond semiconductors to future emerging technologies such as AI, Quantum, SMR (Small Modular Reactors) and more.
Using Federated Learning to Detect Financial Crime
Consilient uses federated learning (FL) to detect financial crime more effectively and efficiently while concurrently employing a new design for the “anti-money laundering/countering the financing of terrorism (AML/CFT)” system.
By leveraging FL, Consilient trains and optimizes machine learning models while preserving data privacy and enabling industry-wide collaboration. This innovative network approach allows for the sharing of optimized models across or between organizations – facilitating continuous learning, discovery of unseen risk, and the evolution of AML controls and strategies – without ever moving or extracting data.
A New Model for Dynamic Financial Crime Risk Management
Through its partnership with Harex InfoTech, Consilient aims to develop an innovative model for dynamic financial crime risk management in the South Korean market. Juan Zarate, co-founder, and chair of the board at Consilient, said that by partnering with Harex, Consilient would bring its ground-breaking FL-based solution to the South Korean market.
With its partnership with Consilient, Harex InfoTech aims to create a user-centric platform for companies and institutions to share learning without moving the individual users’ data. This protects user privacy and enhances data security by exponentially expanding companies’ use of FL.
Tackling Financial Crime Globally
The detection of financial crime globally needs a fundamental change, and this partnership between Consilient and Harex InfoTech aims to transform the fight against financial crime in South Korea. Financial crime is a major concern facing not only the South Korean government, but also the international community.
Kyung Yang Park, founder, president, and chief vision officer of Harex InfoTech, said that with their joint experience and expertise in AI, their collaboration with Consilient enables South Korea to be on the cutting-edge of the deployment of this advanced technological approach to protect its financial system.
About Consilient and Harex InfoTech
Consilient is the 21st-century answer for best-in-class anti-money laundering and countering the financing of terrorism (AML/CFT) compliance solutions. The company’s solution is a behavioral-based, machine learning-driven utility and governance model design that enables financial institutions, payment systems, and regulators to more effectively share insights about risks and illicit actors in real-time while adhering to privacy protections and data localization restrictions and never moving data.
Harex InfoTech announced the world’s first mobile card payment service in Silicon Valley in 2000 and 2013 won the ‘Best Technology Award’ at the Innovation Project 2013 held by PYMNTS.com at Annenberg Hall on the Harvard University Campus. The company is building the User-Centric Hyper-Connected Shared Network by sharing the platform with all businesses and creating a user-centric new economic order, which maximizes user benefits and business profits with hyper-personalized services based on User-Centric AI sharing platforms.
Conclusion and Recommendations
Financial crime is a major concern worldwide, and this partnership between Consilient and Harex InfoTech is a step in the right direction. To combat financial crime on a global scale, partnerships like this with an innovative technological approach are necessary.
Other nations should also take note of this partnership and explore similar collaborations in their respective countries. Such collaborations will help in detecting and preventing financial crime globally, thereby ensuring a safer and more secure financial system for everyone.
<< photo by Mikhail Nilov >>
