Wayne, PA (November 5, 2014) – Financial services industry veteran David McLaughlin today announced the formation of QuantaVerse, a new data science technology company focused on providing risk reduction and revenue‐growing solutions purpose‐built for banks and financial services firms. QuantaVerse is a data science engine that looks beyond banks’ own customer data to capture meaningful insights that improve financial results for clients.
The company was founded in response to an emerging trend among financial services firms who were dramatically increasing the investment required to prevent its customers from conducting financial crimes through their systems. These investments were in reaction to increasing pressure from global regulatory agencies through their pursuit of large fines, and threats of criminal prosecution, for violations.
According to a report by the United Nations Office on Drugs and Crime (UNODC), less than one percent of global illicit financial flows are currently seized and frozen. To counter this trend, QuantaVerse has developed proprietary methodologies, algorithms, and tools to ingest and process data from a wide variety of external sources, many of which are currently unavailable to, or unassessed by today’s banks. These data sources include unstructured and unindexed deep web data, as well as open source public Internet data, and a number of government or commercially produced datasets on known financial criminals and other prohibited or high‐risk persons or entities of interest. The QuantaVerse engine also ingests and analyzes current transaction data and basic customer information from banks’ operational systems.
Unlike other data mining and analytics technologies used in anti‐money laundering efforts, QuantaVerse employs data science‐driven mathematical models and formulas as filters to examine pertinent data in an automated, rapid and ongoing manner. These algorithms are built to continuously “learn” and enhance themselves – all without the need for human intervention. QuantaVerse solutions reveal which customers expose institutions to unacceptable risk by using their services and platforms to launder money.
“Using proprietary data science algorithms, QuantaVerse is able to do a better job finding the criminals who are laundering money by identifying the parties involved in transactions, deducing their relationships, and navigating millions of transactions that illuminate improper activity,” said David McLaughlin, CEO of QuantaVerse. “Today’s banks are subject to heavy regulation and risk regarding financial crime. Our data science platform will help banks stay a step ahead of criminals while satisfying the needs of their regulators.”
In addition to supporting banks’ critical business needs, QuantaVerse solutions will further benefit the larger society by making it more difficult for criminals to launder the money garnered from drug, prostitution and slave trades, which is often then used to support terrorism and other crimes.
About David McLaughlin
David McLaughlin founded QuantaVerse, LLC in response to an emerging trend among large global financial services firms who were having to dramatically increase the investment required to prevent customers from conducting financial crimes through their systems. These investments were in reaction to increasing pressure from global regulatory agencies through their pursuit of large fines, and threats of criminal prosecution, for violations. The firm provides advanced, proprietary, data science algorithms that deliver predictive and prescriptive insights about your clients, and your client’s customers.
Prior to founding QuantaVerse, David held senior executive positions with IPR International, NES Financial and SEI. Prior to his roles in the private sector, David served more than six years as a naval officer. He was commissioned as an Ensign in the US Navy in 1986 and attended flight school in Pensacola, Florida. He is a graduate from the highly regarded TOPGUN program, and completed a combat tour in the Persian Gulf where he was awarded the Distinguished Flying Cross and two Air Medals for bravery in combat.
QuantaVerse is the emerging leader in data science‐powered risk reduction and revenue growth solutions, purpose‐built for the global banking industry. Founded by financial services industry veterans and innovators, QuantaVerse solutions employ proprietary data science algorithms, integrate and filter internal bank data and related external data – including public Internet data, unindexed deep web data and government and commercial datasets – to help the global banking industry to significantly improve their compliance with AML, KYC and BSA regulations and requirements. QuantaVerse solutions also drive revenue by turning KYC data into strategic insights about the markets and customers they serve. To learn more how QuantaVerse can help your financial institution, please contact us at (610) 465‐7320.
Legacy AML technology such as transaction monitoring systems (TMS) have little to no ability to identify and assess risk created by shell companies. And while policies, procedures, and processes, if applied correctly, can protect financial institutions from becoming conduits for some fraction of money laundering, terrorist financing, and other financial crimes, identifying shell company risk continues to be elusive.
On the final day of the FIBA conference, QuantaVerse Founder and CEO, David McLaughlin, participated on the “Customer Profiling, Use of Innovative Technologies in Onboarding and Risk Assessment” panel. David Schwartz, President and CEO of FIBA, set up the panel discussion by emphasizing the importance and impact that innovative technologies have on risk assessment and the customer onboarding process.
CASE STUDY: AI-Powered Entity and Alert Adjudication Streamlines Financial Crime Investigation Processes
Based on these outcomes, the bank is moving QuantaVerse AI solutions into production. Moving forward, the bank will be better equipped to find hidden financial crime risk while automating 70 percent of its AML investigation processes, enabling investigators to focus their time and talents on the most complex cases.