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AI/ML for Regulatory Compliance in Banks: Refining Reporting

Transform regulatory reporting with AI/ML for simplified and secure compliance processes

Since the 2008 global crisis, regulators have tightened frameworks and regulations to refine and improvise the working and risk supervision of Financial Institutions (FIs). To pick up the pace, the RBI has suggested AI/ML inclusions for regulatory reporting to simplify and secure the process.


The increasing complexities in regulatory reporting have given rise to such demanding technologies. AI powered by big data and machine learning has the potential to revolutionize regulatory reporting.


Its application offers better productivity for companies. Machine learning can only work if it fits into the organization's workflow but holds the potential to enhance the decision-making for compliance teams.


Benefits of AI/ML in Regulatory Compliance


AI/ML-based regulatory reporting offers banks and financial institutions enhanced accuracy, efficiency, and automation in meeting regulatory requirements, reducing manual effort, and ensuring compliance.


Cost cutting: Compliance is costly and ML results in cost cutting with phenomenally better analysis of credit risk.

Coherent Processes: Real-time risk detection and automation of redundant tasks can be handled by AI/ML easily.


Lowers Fraud Risk: AI/ML undertakes 24/7 monitoring for credit channels most vulnerable to fraud and losses.


Information de-duplication: Duplicate or unimportant content is reduced and therefore saves time in reviewing.


Unlocking the Value of Report Content: Regular updates in regulatory reporting content unlocks its true value.

Use Cases of AI/ML in Regulatory Compliance


AI/ML technologies provide banks and financial institutions with advanced capabilities for regulatory compliance. It detects fraud, monitors transactions, and analyzes vast amounts of data for regulatory compliance, enabling timely identification of potential risks and enhanced compliance management.


Here’s how.


Mapping of Changes in Regulatory Reports


AI/ML helps institutions in interpreting and analyzing the regular updates in regulatory reporting by leveraging Natural Language Processing (NLP) for computing proactively and scanning huge amounts of unstructured data that is scattered over hundreds of channels.


Such AI/ML solutions also extract metadata and map new data.


Regulatory Compliance Assurance


Through AI/ML, institutions can ensure deep analytic insights into high-risk aversions and enable digitized compliance.

  • Identify and red flag compliance data errors

  • Match and interprets inconsistent data

  • Examine and ascertain compliance gaps

  • Bring on a comprehensive gaps analysis report

  • Give rectification recommendation


KYC Management


FIs can profit from AI/ ML results in multitudinous KYC aspects, like identity & background pre-checks for remote KYC, client onboarding, real-time sale-grounded KYC anomaly discovery, and KYC workflow automation.


For real-time KYC anomaly discovery, the result would conduct holistic deals analysis by automatically deep-diving into the client’s sale, sale history, behavioral profile, and other unshaped data sources result would work its NLP, ML, generative modeling, and sophisticated analysis.


With D2k Technologies' AI and ML solutions, you can build compliance alert systems modeled on compliance officers' own data.


In today's data-driven compliance environment, AI/ML technology can improve the efficiency and productivity of compliance operations while lowering expenses.


Get in touch with D2K Banking Fintech Experts.

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