Case Study

Leading financial institution harnesses machine learning to cut costs by 75%

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Client: A global financial institution

Challenge: To handle the growing needs of the business, the firm needed to transition from a manual financial spreading process, reduce costs, and better manage the volume and quality of their spreading process

Solution: Genpact LiveSpread, a scalable and flexible solution, based on the Genpact Cora platform, embedded machine intelligence into the client's financial spreading process, enhanced automation and institutionalized standards and credit policies

Impact: Over a 75% reduction in costs associated with spreading and 80% of financial statements now being processed instantly, reducing process turnaround time

Business challenge

In businesses with rapid growth, the success or failure of the organization is often a function of the scalability of its internal processes, and their ability to keep up with the changing demands of local regulations. The predicament confronting this financial institution (FI) was no different. With operations in multiple countries, the firm faced several challenges:

  • Analyzing and processing data from multiple and constantly changing sources was a high-volume operation depending on manual effort, which exposed the firm to greater risk and increased overheads
  • High variability of formats, accounting systems, and languages in a global environment increased process complexity
  • Incumbent technology did not allow for rapid extraction, interpretation, normalization, and spreading of multi-format, multi-source financial data
  • Access to the internal IT organization and the lead time for IT to build, test, and deploy an interface to internal and external systems was unreasonably long
  • Institutionalizing credit policy throughout the processes was an ongoing challenge as the spreading teams continued to expand and change from employee turnover

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To handle the growing needs of the business, the firm needed to move away from a manual, resource-driven mode of scaling, towards an automated system that could minimize manual interventions and ensure timely compliance, while also being fully automated, scalable, and self-learning.

Genpact solution

Rapid implementation, patented technology to extract financial information from any source, scalability, and the ability to service enterprise-scale operations were all critical to the client. The Genpact LiveSpread solution enabled the client to meet all the stated objectives, by automating their financial spreading process.

The solution harnessed machine learning and artificial intelligence in two areas: extraction of information from the documents, and normalization of the extracted data to the desired template.

During the extraction phase, the native-processing algorithms helped process documents during upload in a completely traceable way while managing the variations in input. This allowed granular control over document processing while handling the complexities of varied document types, sources of information, and the nature of filings.

In the normalization phase, machine learning helped categorize source data into a set of normalized items based on the desired template by applying domain-specific analysis models as a pre-processing step in its learning and processing tasks.

Starting with an out-of-the-box client portal, Genpact enabled the client to go-live with an enterprise-grade financial spreading solution in less than two months (including configuration and integration stages). Some features of the solution include:

  • Location and form-type agnostic
  • Ability to process information from non-standard data types (e.g., images) and sources (e.g., footnotes)
  • Step-wise traceability to ensure compliance at every stage
  • Configuration to handle private company filings which are non-standard in nature, and not bound by reporting compliance requirements of publicly held companies
  • The ability to upload results from the analysis to the firm's internal spreading and credit scoring systems

Following the implementation, the volume of financial statement processing has steadily increased, with over 100,000 financial statements from 45,000 companies in 35 countries being processed annually through this solution.

Business impact

The solution, enabled by the Genpact Cora platform, has dramatically improved timeliness and quality of insight, in addition to increasing business agility, and growth.

Other benefits include:

  • More than 75% reduction in costs associated with spreading
  • 80% of financial statements are being instantly processed, reducing turnaround time significantly
  • Institutionalized standards and credit policies
  • The freedom to operate independent of resourcing limitations has allowed a more stable operating model
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