MSB Technology & Automation

Benefits of MSB Technology & Automation

August 18, 2017

MSB technology and automation help businesses streamline their processes while improving overall accuracy. In an industry with ever-changing regulation and sky high costs for non-compliance, money service businesses can’t afford to ignore the powers of emerging technology. Luckily, there are many ways to harness automation to strengthen business systems and reduce human error.

The Rise of Automation

Businesses of all kinds are harnessing automation to save time, free up human resources, and improve accuracy. When used strategically, automation can complement your manual processes to help your business run smoothly. For example, automating simple accounting tasks like monthly invoices and regular payments can free up your accounting team to identify new revenue streams or reduce costs in other areas.

Some automation is robotic in nature. We encounter this type of business automation most often as customer service chat bots. When you chat with customer service on a website, a chat bot will often initiate the conversation and help narrow down your focus. From there, your issue can be delegated to a human specialist if needed.

As businesses embrace automation on a larger scale than ever before, they are also embracing machine learning and cognitive computing. The process of machine learning refers to the act of teaching a computer how to think like a human. By feeding it data and training it to make decisions, the computer can learn how to react and respond in a near-human manner. Once the computer is trained, cognitive computing is an invaluable form of automation.

Many types of automation are so simple and pervasive that we don’t even notice them. Automation for business includes automatic email replies, scheduled social media posts, and monthly recurring billing. Each type of automation is designed to free up your time by performing a repetitive task. This allows you to focus on strategic tasks and other tasks that can’t be easily automated, like forging new business partnerships with your industry contacts. Workflow automation optimizes your business systems, speeds up processes, cuts costs, and frees up your human resources.

Technology and Automation for MSBs

Cognitive computing is invaluable to businesses because it enables a computer to process a large amount of structured or unstructured data and identify patterns. An MSB compliance service provider can train a computer to identify suspicious transactions and patterns in check cashing data. The computer will continually improve as it digests more data and the humans train it with increasing accuracy.

This powerful application of machine learning to MSB compliance technology helps check cashers catch the most discreet red flags that even the best-trained humans might miss. By allowing the computer to do the tedious task of sifting through mountains of data, you improve accuracy and save time. The top priority for MSB compliance programs today is to meet the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) requirements outlined by the Financial Crimes Enforcement Network (FinCEN). Failure to comply results in the loss of access to banking and business closure. Compliance is non-negotiable.

Robotic Process Automation (RPA) is a solution specific to the MSB industry. RPA refers to the application of technology that enables a company to train a “robot” to capture and interpret transactional data. The RPA aids in the processing of transactions, manipulates data, and triggers internal responses. An RPA can even communicate with other digital systems to help different databases and technology work together in the check cashing or money transfer process.

The Benefits of MSB Technology and Automation

In an industry with an endless stream of transactional data that spans different geographic locations, MSB technology and automation are invaluable. MSB automation leads to increased productivity by supporting and improving the daily task of sifting through transactional data, national databases, and public domain customer information to detect anomalies. MSB technology also helps money service businesses stay ahead of continually evolving regulatory requirements.

On average, compliance agents spend 15% of their time tracking down regulatory changes and keeping up with the required documentation. RPA aids in this process to deliver improved accuracy in a smaller amount of time. MSB technology speeds up business processes while also freeing up compliance experts to troubleshoot specific problems for their client. Another job of an MSB compliance department is to assess risk for both the business and each individual customer. MSB technology automates the organization of data and subsequent risk assessment.

In the actual moment of cashing a check, technology and automation assist your human check cashers. POS technology aids in the capturing of transactional data and then checks these data points against a larger database. The check cashing teller can focus on observing and interacting with the customer while the technology does the heavy lifting. Important data can be immediately and effortlessly communicated with your financial institution. This ensures that everyone has access to important information the moment it becomes available. MSB technology streamlines your check cashing process and helps catch anomalies that your employees might miss (even with the best training!).

Everyday, criminals become better at outsmarting the guides put in place to stop fraudulent behavior. MSB automation keeps you ahead of the curve and stops fraud before it enters your money service business. This helps you reduce losses, strengthen your banking relationship, and focus on growing your business.

MSB Technology Solutions

Integrating MSB technology and automation into your own MSB can feel overwhelming. The MSB compliance experts at NCC provide cutting-edge technology (and training) to every client. This is in addition to a real MSB friendly bank account. Your business will enjoy reliable MSB banking and supported financial services in addition to the benefits of leading MSB technology.

NCC’s advanced POS systems are designed to partially automate the check cashing process. The system frees up your teller to concentrate on the customer in front of them. As transactional data is gathered through Remote Deposit Capture (RDC) and fingerprint scanners, it is communicated to a database. The data is checked against national databases and scanned for anomalies.

If everything checks out, your check cashing process continues. If the technology catches a red flag, you can successfully stop fraud in it’s track by refusing to cash the check. This technology is a powerful partner for all MSB compliance programs and unlicensed MSBs looking to reduce fraud.

Ready to open your MSB bank account and start taking advantage of this technology? Call us or fill out an online form today!

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