--- title: "Elucidate launches industry-first product for pricing financial crime risk – Elucidate" description: "Elucidate worked alongside Standard Chartered Bank to build this framework, which uses machine learning technology coupled with a bank’s own data to create a numerical financial crime risk score." url: https://elucidate.co/press-release/elucidate-launches-industry-first-product-for-pricing-financial-crime-risk-2 --- # Elucidate launches industry-first product for pricing financial crime risk Press Release Elucidate launches industry-first product for pricing financial crime risk Elucidate worked alongside Standard Chartered Bank to build this framework, which uses machine learning technology coupled with a bank’s own data to create a numerical financial crime risk score. Elucidate, the financial crime risk scoring company, has launched a standardised, transparent product for pricing financial crime risk, which it says will provide fairness and comparability within the market. Transactions between financial institutions are currently priced by volume, with the associated financial crime risk not bearing any influence on the price of the transactions. Originators of high-risk transactions are therefore not incentivised to improve their financial crime controls, leaving intermediaries to bear the costs of the potential risk. Elucidate’s product, which was launched this week at the BAFT Europe Bank to Bank Forum (18 to 19 January 2022), aims to reduce financial crime by creating a standardised algorithm that the entire market can adopt, improving transparency between banks and their clients. At the same time, the product creates a shared framework to assess and monitor for improvements to reduce exposure to financial crime. The framework also ensures transactions that pose higher financial crime risks will be subject to higher fees. Elucidate worked alongside Standard Chartered Bank to build this framework, which uses machine learning technology coupled with a bank’s own data to create a numerical financial crime risk score. The scores are then applied into a pricing algorithm to determine the price, which is then made clear to both parties in the transaction. A clear standardisation of financial crime risk provides the financial industry with far greater accuracy in risk decision making, eliminates market inefficiencies, creates more fairness in counterparty interactions, and effectively aligns risk and return. Founded in 2018, Elucidate has been working to improve financial crime risk transparency. It has created the industry’s only authorised financial crime benchmark, the _Elucidate FinCrime Index (EFI),_ which is regulated by the BaFin (Germany’s Federal Financial Supervisory Authority) and ESMA (European Securities and Markets Authority). Shane Riedel, CEO and Founder of Elucidate, said: “We know that banks are spending, on average, around 3% of revenue on managing financial risk. Some banks have even told us that 10% of staff are employed in compliance alone. That’s not sustainable. “This product will provide financial institutions with a simple way of calculating risk scores, which will be made visible to all parties in a transaction, ultimately providing greater transparency across the market. Crucially, though, it will also allow banks to move away from manual and bespoke assessment of financial crime, which is often time and cost intensive. "We have several thousand years of market experience showing us that the best way to manage risk is to price it correctly. This applies across the board. The closer we come to allocating the cost of financial crime risk to the point of its origin, the less risk there will be." Francesco Miccoli, Head of Europe-Americas Correspondent Banking & Head of UK Fintech at SCB, said: “In our view, financial crime risk, like credit risk, should be accurately priced. If a financial institution carries more financial crime risk, the pricing should reflect that. “We see financial crime risk pricing as a tool to change the commercial calculations within correspondent banking. By deploying data analysis at scale for preliminary and ongoing risk analysis, we can lower respondent acquisition and maintenance costs to a point that more commercial relationships are commercially feasible.” **\_\_\_\_** **About Elucidate:** Elucidate ([https://www.elucidate.co](https://elucidate.co/)) is a financial crime risk quantification platform, regulated by the BaFin and ESMA, providing the market’s only authorised financial crime benchmark.  From its base in Siliconallee, one of Berlin’s most diverse teams works with financial institutions and regulators with the goal of identifying, minimising, and pricing their financial crime risk exposure. **About Standard Chartered Bank:** Standard Chartered Bank plc ([https://www.sc.com/en/](https://www.sc.com/en/)) is a British multinational banking and financial services company headquartered in London, England. It operates a network of more than 1,200 branches and outlets across more than 70 countries and employs around 87,000 people Updates Press releases Every new update from us, from new product launches to new partnerships, can be found here. [PRESS](https://elucidate.co/press-release/benchmark-administrator-press) [The Elucidate FinCrime Index becomes the market’s first regulated financial crime risk benchmark](https://elucidate.co/press-release/benchmark-administrator-press) A critical step taken in establishing the standard for measuring and analysing financial crime risk Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/board-announcement) [As it joins the plug and play accelerator programme, Elucidate introduces its Advisory Board](https://elucidate.co/press-release/board-announcement) Elucidate would like to welcome its new Advisory Board members, and is pleased to announce its selection for Plug and Play’s prestigious FinTech accelerator Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/elucidate-expands-global-presence-with-miami-office-to-bring-financial-crime-benchmark-to-us-market) [Elucidate expands global presence with Miami office to bring financial crime benchmark to US market](https://elucidate.co/press-release/elucidate-expands-global-presence-with-miami-office-to-bring-financial-crime-benchmark-to-us-market) Former HSBC Head of Financial Crime Compliance, Ben Arber, will head up US business development. Elucidate employs more than 35 people across Europe and has raised €5.7M in funding to date Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/elucidate-joins-berlin-groups-openfinance-advisory-group-board) [Elucidate joins Berlin Group’s openFinance Advisory Group & Board](https://elucidate.co/press-release/elucidate-joins-berlin-groups-openfinance-advisory-group-board) Elucidate, the financial crime risk management platform, has joined the Berlin Group’s openFinance Advisory Group & Board, an initiative set up to standardise and shape the evolution of openFinance adoption. Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/elucidate-launches-open-database-of-financial-crime-risk-scores-in-the-banking-industry) [Elucidate launches open database of financial crime risk scores in the banking industry](https://elucidate.co/press-release/elucidate-launches-open-database-of-financial-crime-risk-scores-in-the-banking-industry) The Elucidate FinCrime Risk Monitor (EFRM) is an open database for scoring the financial crime risk vulnerability of financial institutions Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/elucidate-named-to-inclusive-fintech-50-cohort-for-2021) [Elucidate named to 'Inclusive Fintech 50' cohort for 2021](https://elucidate.co/press-release/elucidate-named-to-inclusive-fintech-50-cohort-for-2021) The Inclusive Fintech 50 recognises fintechs driving innovation in underserved segments and is sponsored by Visa, MetLife Foundation, Jersey Overseas Aid and Comic Relief Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/elucidate-raises-8-million-to-help-banks-counter-surging-financial-crim) [Elucidate raises $8 million to help banks counter surging financial crime](https://elucidate.co/press-release/elucidate-raises-8-million-to-help-banks-counter-surging-financial-crim) The funding comes at a critical time for the financial sector currently facing a dramatic increase in financial crime caused by the pandemic and exacerbated by growing instability in Eastern Europe. Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/elucidate-raises-eu2-5m-financing-round-to-build-the-moodys-of-financial-crime-risk) [Elucidate raises €2.5m financing round to build the Moody’s of financial crime risk](https://elucidate.co/press-release/elucidate-raises-eu2-5m-financing-round-to-build-the-moodys-of-financial-crime-risk) Elucidate’s regulated benchmark enables industry leading financial institutions and regulators to score, manage and price FinCrime risk Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/elucidate-schliesst-eu2-5-millionen-finanzierungsrunde-ab-um-das-moodys-der-risikobewertung-von-finanzkriminalitat-zu-werden) [Elucidate schließt €2.5 Millionen Finanzierungsrunde ab, um das Moodys der Risikobewertung von Finanzkriminalität zu werden](https://elucidate.co/press-release/elucidate-schliesst-eu2-5-millionen-finanzierungsrunde-ab-um-das-moodys-der-risikobewertung-von-finanzkriminalitat-zu-werden) Finanzierungsrunde angeführt von Frontline Ventures zusammen mit SeedX Liechtenstein, APEX Ventures und Big Start Ventures Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/financial-crime-expert-david-lewis-joins-the-board-at-elucidate-2) [Financial crime expert David Lewis joins the board at Elucidate](https://elucidate.co/press-release/financial-crime-expert-david-lewis-joins-the-board-at-elucidate-2) Lewis is a leading advocate for more effective action at a global level to tackle money laundering and has spoken widely about the importance of and pressing need for reform Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/financial-crime-risk-scoring-platform-elucidate-earns-iso-27001-security-certification) [Financial crime risk scoring platform Elucidate earns ISO 27001 Security Certification](https://elucidate.co/press-release/financial-crime-risk-scoring-platform-elucidate-earns-iso-27001-security-certification) The certification was granted after meeting the requirements for establishing, implementing, and maintaining an information security management system (ISMS) as required by the International Organization for Standardization (ISO) Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/fraugster-and-elucidate-announce-partnership-to-tackle-financial-crime) [Fraugster and Elucidate announce partnership to tackle Financial Crime](https://elucidate.co/press-release/fraugster-and-elucidate-announce-partnership-to-tackle-financial-crime) Integration will provide customers with access to global sanction lists Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/ing-group-commerzbank-and-nordea-lead-financial-crime-risk-global-ranking) [ING Group, Commerzbank, and Nordea lead financial crime risk global ranking](https://elucidate.co/press-release/ing-group-commerzbank-and-nordea-lead-financial-crime-risk-global-ranking) Elucidate's FinCrime Risk Monitor (EFRM) ranking is based on the company's open database for scoring the financial crime risk vulnerability of financial institutions Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/investment-announcement) [Elucidate raises €2.5 million to further develop its Financial Crime Index](https://elucidate.co/press-release/investment-announcement) Silicon Valley-based 11.2 Capital leads seed funding into the expansion of the Index’s quantification and prediction capabilities Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/micheal-mcvicker-announcement) [Elucidate welcomes Michael McVicker as Head of Business Development for the Americas](https://elucidate.co/press-release/micheal-mcvicker-announcement) Former Leading Banker at HSBC and Standard Chartered Bank takes charge of Elucidate’s market coverage for the Americas Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/raiffeisen-bank-international-partners-with-elucidate-to-deploy-standardised-financial-crime-benchmarking) [Raiffeisen Bank International partners with Elucidate to deploy standardised financial crime benchmarking](https://elucidate.co/press-release/raiffeisen-bank-international-partners-with-elucidate-to-deploy-standardised-financial-crime-benchmarking) RBI deploys Elucidate’s financial crime risk quantification technology using automation and machine learning to remain ahead of financial crime Nov 9, 2024  · Nov 9, 2024  min read [PRESS](https://elucidate.co/press-release/tenurex-and-elucidate-partner-to-increase-financial-inclusion-worldwide) [TenureX and Elucidate partner to increase financial inclusion worldwide](https://elucidate.co/press-release/tenurex-and-elucidate-partner-to-increase-financial-inclusion-worldwide) Both companies share the vision that everyone in emerging markets deserves the right to participate in global financial markets and have united to tackle the outdated framework in corresponding banking Nov 9, 2024  · Nov 9, 2024  min read [Read all Press Releases](https://elucidate.co/press-list) Journalist? Join our Press list Want to hear more from us? Sign up to our press list to make sure you don’t miss any new announcements. Download our press kit If you are a member of the press and need more information, please contact our Communications Team at press@elucidate.co. To download our press kit, which includes brand assets, logos and guidelines, click below. [Download press kit](https://elucidate.co/portfolio-assessment-tool)