Consilient has introduced a product tailored to transform the field of correspondent banking, a key component in global trade and cross-border payments.
The inception of its Correspondent Banking Model was driven by the urgent need for more sophisticated risk management solutions in the banking industry. Correspondent banking complexity starts with basic payment structures. A single international transfer typically flows through three to four different banks before reaching its destination. Each bank sees only its immediate partners in the transaction chain, creating natural blind spots that criminals exploit.
Banks operating in correspondent networks face three interconnected challenges that traditional controls struggle to address.
#1. Lack of transparency in transaction chains
#2. Cross-border complexity
#3. Third-party dependencies
Critically, traditional controls operate within institutional boundaries. Each bank monitors only its portion of the payment chain.
The newly launched Correspondent Banking Model utilizes advanced federated learning technology. This technology enables banks to collaborate on risk detection without sharing sensitive customer data. Machine learning models train across multiple institutions, learning from diverse transaction patterns while raw data remains within each bank’s secure environment.
Additional features of this model include enhanced due diligence capabilities and improved audit trails, which help banks meet the increasing demands of regulators for transparency and real-time monitoring. These advancements represent a breakthrough, allowing institutions to benefit from collective intelligence while maintaining strict control over sensitive customer information.
The benefits extend beyond individual institutions. By strengthening the integrity of correspondent banking networks, these approaches help maintain vital financial connections to manage correspondent banking relationships.
One of the remarkable aspects of Consilient’s product is its ability to operate within the existing technological frameworks of financial institutions. This plug-and-play functionality ensures that banks can adopt this advanced model without the need for substantial IT overhauls, leading to a smoother transition and quicker integration.
Copyright © 2025 RegTech Analyst
Copyright © 2018 RegTech Analyst
