Can RegTech Reduce Financial Crime Without Increasing Friction?

The myth of the trade-off

Many institutions still treat compliance and customer experience as opposites. They are not. Bad controls produce both friction and missed crime; good controls produce neither.

What modern controls look like

• Risk-based onboarding that calibrates effort to risk.
• Reusable identity that removes repeat KYC.
• ISO 20022 data feeding monitoring engines for cleaner alerts.
• Network analytics that find the few real cases without flagging the many honest ones.

The role of the supervisor

Supervisors increasingly reward outcomes — true positives, time to action, evidence quality — not volume of alerts. RegTech is the way most institutions will get there.