ELUTHRO

Intelligence from the Box – Regulatory Compliance

Intelligence from Documents / Natural Language Intelligence / The Corporate Brain

By Randy Friedman

August 23, 2019

The Financial Services industry is perhaps the most information intensive of all. They have no factories, no inventory, no materials—just smart people and information systems. And these smart people are expensive considering financial service workers earn more on average than nearly every other industry. One would suspect that they are among the most efficient users of information, but the facts are quite different. It’s not that they lack information. They have too much, and they have so many complex regulations with which they need to comply.

Knowledge and speed are the competitive drivers of success. So why are banks so slow to onboard a new corporate customer?

My team interacts with large financial service firms all the time, and they see many applications for Cognizer, the Corporate Brain. Compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) is just one of many regulatory Cognizer use cases they see relieving severe financial pain.

Let’s explore why: $500 million dollars per year. In a Recent Article, Thomson Reuters cited that most large financial institutions report spending up to $500 million each year on KYC and customer due diligence.

For personal accounts, information extracted from documents is needed to prove one’s identity. For business accounts, each officer and director needs to do the same. Periodic surveillance is required, which means updating those documents every year or two. Most folks have several banking relationships. Most corporations have dozens.

Worse than the cost is the time. New corporate client on-boarding routinely takes two or three months on average. Inefficient processes are causing customers to walk.

Security is also a major problem. The documents shared by customers with financial firms are highly sensitive, and that data is highly regulated. Most banks ask you to send those documents via email. Ahem, I said “email”

Along with our partner, Box.com, expediting KYC and AML compliance is just one of the many problems that Cognizer, the Corporate Brain, solves. The Corporate Brain extracts intelligence from documents stored in Box.com, email systems, file folders, etc.

Every piece of vital information, such as your Social Security or driver’s license number, is secure by Cognizer using the same access control settings that Box.com imposes on those documents. If you are not entitled to see a passport document in a bank customer’s shared Box.com folder, you cannot see the information Cognizer extracts from that document.

The idea is simple. The documents are not moving via email, they are secured in a Box.com shared folder. Cognizer works with Box.com to manage the workflows and compliance using AI. Simple to say, complex AI is required to make it work. That’s part of Cognizer’s value proposition. We deliver intelligence from documents without search.

You can save just 20% of the time it takes for a major financial services firm to comply with AML and KYC amounts to $100 million—per year. I repeat: $100 million. Now, imagine cutting even that amount of time in half.

Who has the time to search? That why we say “Stop Searching. Start Knowing.”

To explore how Cognizer works or how it can help your organization, Click Here.