By: Jack Thomas
ThetaRay, a company specializing in AI-powered transaction monitoring, is expanding its operations in the United States as part of its broader effort to support more secure, seamless financial transactions worldwide. The company, known for its “cognitive AI” technology, suggests the move could strengthen its position as a valuable tool for both financial inclusion and security, potentially helping institutions detect sophisticated financial crimes while allowing legitimate transactions to proceed more smoothly.
ThetaRay’s platform uses machine learning aimed at mimicking human intuition in detecting anomalies in real-time. Unlike traditional rule-based systems, the cognitive AI technology is designed to help financial institutions identify complex threats such as money laundering, terrorist financing, and human trafficking – particularly when these are hidden within large volumes of transactional data. The system aims to distinguish “good” behavior from “bad,” potentially helping banks and fintechs serve legitimate customers with greater confidence while mitigating illicit actors.
ThetaRay has deployed its technology across a range of global markets. In Africa, it partnered with Onafriq (formerly MFS Africa), the continent’s largest digital payments network. The integration of ThetaRay’s SONAR solution reportedly enabled Onafriq to detect 83% of sender alerts and 94% of receiver alerts for cross-border payments – significantly increasing efficiency and reducing false positives. The company notes that the collaboration appears to have supported secure scaling across over 40 African countries, advancing financial inclusion; potentially a significant development on the continent for everyday business dealings.
In Europe, leading banks and fintechs have used ThetaRay’s solution to help meet stringent anti-money laundering (AML) regulations while reducing compliance costs. One European bank reported an 80% reduction in investigation time after moving away from legacy systems. In Latin America, ThetaRay supports fintechs handling remittances and digital payments, aiding them in navigating complex regulatory environments while expanding services to underbanked populations. In the Middle East, banks have adopted the platform to help maintain correspondent banking relationships – a critical challenge in politically sensitive regions. The company indicates its AI has contributed to preventing “de-risking” by giving regulators and partners increased confidence in the institution’s transaction monitoring capabilities.
Building on this global momentum, ThetaRay has expanded into the U.S. market, most recently partnering with IDB Bank, a New York-based commercial and private bank. IDB Bank is using ThetaRay’s platform to enhance its ability to detect financial crime and ensure stronger compliance in an evolving regulatory landscape.
“We are delighted to add IDB Bank in New York to the growing list of global banks using our solution. The U.S. is a key market we are expanding into, and we believe there is a clear need for financial institutions to continue focusing on their ability to detect financial crime,” said Peter Reynolds, CEO of ThetaRay, in a statement announcing the partnership. “Our Cognitive AI solution aims to distinguish between legitimate business and honest customers looking to make safe transactions, and the bad actors of this world. ThetaRay seeks to provide solutions that empower our clients to better serve both new and existing customers.”
Ziv Biron, President & CEO of IDB Bank, added, “We are confident that our partnership with ThetaRay will help strategically enhance our operational fortitude and core competencies to serve our clients in an increasingly nuanced financial services environment.”
In addition to its U.S. expansion, ThetaRay recently launched the GenAI Financial Crime Detection Suite in collaboration with American company Microsoft, using Azure OpenAI Service. The suite is designed to enhance risk scoring, streamline compliance processes, and improve operational efficiency for financial institutions. “We are excited to continue strengthening our collaboration with Microsoft, using their Azure OpenAI Service to advance our vision of enabling trusted transactions across the financial ecosystem,” added Reynolds.
Published by Jeremy S.
