For this issue of WealthTech Talks, we caught up with Steve Elliot, Managing Director of LexisNexis Risk Solutions, a global leader in data and analytics, offering innovative tools for financial crime, fraud prevention, compliance, and risk management and providing the wealth management sector with innovative, information-based analytical and risk decisioning tools and data management services.
In this interview, Elliot shared his insight into how LexisNexis Risk Solutions is helping wealth and investment management firms navigate compliance, fraud prevention, and digital transformation. Elliot also shared his views on the future of wealth management, the impact of regulatory changes and how technology, particularly AI and machine learning is shaping the industry's next chapter.
"Our unified approach to compliance and fraud prevention empowers wealth firms to detect risk earlier, onboard clients faster, and stay ahead of regulatory change — all while delivering a seamless digital experience." — Steve Elliot, Managing Director of LexisNexis Risk Solutions
Could you provide a brief introduction to your business?
At LexisNexis Risk Solutions, we help customers solve problems, make better risk decisions, stay compliant, reduce risk and improve operations. We are part of RELX, a global provider of information-based analytics and decision tools and a FTSE 10 company.
In the wealth management sector, what types of clients do you primarily work with and target?
We offer a range of solutions tailored to all types of investment platform and trading firms large and small. We help our clients to streamline their regulatory compliance processes, automate their customer onboarding and lifecycle management, enhance their KYC screening and enhance their view of their customers to understand and serve them better. Our machine learning-driven technology integrates seamlessly into existing systems to deliver a net improvement in results, in weeks rather than months.
Our clients encompass traditional financial advisory and wealth management firms, as well as brokers, trading platforms, ISA and SIPP providers, fund managers, asset managers, and transfer agency service providers.
Why do your existing and target clients choose to work with you? What makes your solutions relevant and distinct from your competitors?
Since 2020, the wealth and investment management industry has embraced technology to stay competitive and attract new generations of tech-savvy investors. The Covid-19 pandemic highlighted the need for enterprise-wide automation as traditional methods of customer engagement became ineffective.
Why choose us?
Our solutions automate the entire compliance journey, from onboarding to transaction monitoring and outbound payments. Our unified approach to financial crime and fraud functions ensures consistency, facilitates risk assessment, and empowers compliance teams while reducing costs.
Just recently we were recognised as a Leader by Frost & Sullivan research in both Frost Radar: Fraud Detection and Prevention, KYC and Frost Radar: Fraud Detection and Prevention, KYU. In these reports, we ranked number 1 in both growth and innovation indices for KYU, and in the KYC we are leading on the growth index, and one of the top three on the innovation index.
What is next for your business? Can you share the firm's current focus and future plans, such as product development, market expansion, and strategic goals?
Much like the wealth and investment industry, LexisNexis Risk Solutions is continuously evolving. The wealth management community is focused on the new Failure to Prevent Fraud offence, effective from 1st September, and we can help with fraud prevention using shared risk intelligence relating to devices, email addresses, phone numbers, and user behaviour that enhances organisations’ ability to spot potential fraud before it happens and avoid onboarding risky customers.
We continue to develop our data management solutions to ensure investment firms have updated client data to screen the right customers and manage fraud risk effectively.
Being aware of the international nature of wealth management clientele, we are expanding our payee check capability well beyond UK and Europe.
You might have noticed that I have not mentioned the buzzword, AI. For many, this is a new thing but LexisNexis Risk Solutions has actually been using AI and machine learning for years and it is at the core of all our anti-fraud solutions.
Based on your experience in the wealth management sector, what key opportunities and challenges do you foresee for firms today and in the next three years?
Opportunities and challenges are interconnected aspects of the industry.
Today’s wealth management sector is influenced by several factors including the integration of technology in customer engagement, attracting younger generations of investors and the inevitable focus on cost reduction.
Although traditional wealth managers were initially reluctant to adopt technology prior to Covid-19, it has now become essential. This adoption is impacting not only compliance and back-office operations, but also customer advice. Embracing technology is crucial to maintaining competitiveness and appealing to millennial and Gen-Z investors.
New investors have abundant choices and demand seamless experiences and low fees. To meet these expectations, it is imperative that firms become operationally agile, deliver an efficient onboarding process and minimise manual operations to reduce internal costs. This is precisely what we can deliver for our clients.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers.
For more information, click here to view LexisNexis Risk Solutions' profile and RELX's website.
About the WealthTech Talks Interview Series
In the WealthTech Talks interview series, we interview senior executives from leading wealth management firms, solution providers, and WealthTech influencers to learn more about them, their journey, their perspectives on the market and how they see the future of wealth management.
Read the latest editions in the series below!
