Applying advanced technologies and analytics
Transformation is happening
Technology is transforming the due-diligence and surveillance activities that are key to credit and compliance risk management. For example, artificial intelligence (AI), including natural language processing, can extract data efficiently from the volumes of documents with customer information.
In addition to AI, robotic process automation (RPA), or bots, can conduct pre-transaction due diligence about a customer or counterparty, especially where data-collection activities are repetitive, routine, manual tasks governed by pre-defined rules. Bots can obtain, verify, and process customer data for onboarding and during regular intervals from documents, public databases, government websites, and more. For example, they can retrieve data from regulatory and law-enforcement agencies, such as the SEC, FBI, and Interpol. RPA's benefits include faster and more efficient cycle times, increased accuracy, and freeing up personnel for more productive, revenue-generating, and satisfying work.
Finally, big-data techniques can be used to mine large amounts of data to detect suspicious activity and, increasingly, support predictive models that may flag future credit or compliance issues. In the case of AML, for example, these may be a part of advanced models that generate transaction alerts.