Food for Thought: Takeaways from Exiger’s NY AI & Banking Dinner

Thursday, November 8, 2018

"Food for Thought" is a series showcasing insights and best practices from Exiger's roundtables, where senior professionals and thought leaders come together to discuss the latest industry developments over a bite to eat.

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Financial institutions, facing mounting pressures of increased regulation coupled with rising costs, are looking to solve these new challenges. Banks have raced to both manage costs as well as simultaneously increase efficiency in the traditional KYC process.

How is Artificial Intelligence (AI) evolving the KYC process? With advancements in AI-powered technology compliance solutions, there have been substantial operational efficiency gains in the KYC process as well as compliance as a whole. Through natural language processing and machine learning, technology can be taught to think like a human but faster and more efficiently.

Senior compliance professionals at leading financial institutions recently attended a roundtable dinner co-hosted by Mark Kaplan, Chief Operating Officer and Senior Managing Director at Cantor Fitzgerald & Co. and Aaron Narva, Vice President and Global Head of Exiger 3PM. The attendees shared the following perspectives on important topics related to their compliance efforts and the integration of AI:

The application of AI in KYC, operations, and compliance

Through AI and its natural language processing and machine learning, it is possible to improve and enhance existing compliance processes in financial institutions. AI enables compliance professionals to scour available data in a more meaningful and effective way, while reducing the time spent wading through false positives and irrelevant information. Retrieving authoritative documents, such as U.S. Securities and Exchange Commission filings or corporate registrations, frees up time to focus on higher-value decisions.

How technology is providing consistent and auditable reviews

We all know that a researcher conducting reviews is more effective Tuesday morning than Friday afternoon, when going through those last 500 Factiva articles might not seem necessary. AI provides the consistency required along with the auditability to help demonstrate to regulators that you are compliant with KYC procedures and are conducting reviews that go past the 9th page of Google search results. This is a significant contrast with other more antiquated audit processes, such as printing out Google search results and physically stamping them.

New standards set by industry peers and what is accepted by regulators

When considering the application of a new tool as part of compliance program, it is important to consider what competitor and peer financial institutions are doing. As the most innovative and forward-thinking banks look to AI to solve mounting compliance challenges, this sets the standard for others. Additionally, as regulators recognize these technologies as viable methods of conducting reviews, it is becoming clearer that AI is a sustainable answer to these compliance challenges.

Financial institutions’ compliance and legal professionals have realized the issues faced with increasing regulations and simultaneously increasing costs can provide substantive hurdles for staying compliant. Evident red flags can be identified quicker and easier with technology-enabled solutions – allowing your team to focus on analysis and making critical decisions regarding risks that may not necessarily be straightforward.

We’re here to help

Exiger is a global authority on the application of AI in compliance programs and has worked with financial institutions across the world to provide best-in-class AI-enabled compliance solutions.

Benchmark your use of AI in your compliance program:

By attending our next AI and Banking roundtable.

Request an invitation to future events.

DDIQ, AI-enabled compliance solution:

Find out more at www.kycperfected.com

 
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