Banks have to report hundreds of thousands of transactions each day to various regulators. Inaccurate or missed reporting could lead to huge fines. Transaction Reporting BAU function requires daily exception management of reporting errors and rejections back from regulators.
Regulatory requirements for Suitability have become increasingly stringent, and it is seen as an important control for safeguarding the interests of investors. Financial Planners and Investments managers spend a significant amount of time conducting suitability assessments. There is an opportunity for RPA to automate the more mundane aspects of data gathering and rules-based checks.
AI and automation solutions can reduce the Analyst time spent on creating Equity research and can make the offering to clients more attractive given the cost pressures introduced post MiFID II. Certainly for ‘less intelligent and standard tasks’, automation is expected to be a game changer in this area. These tasks include producing standard quarterly earnings reports, sourcing and processing publically available data, predictive modelling, performance calculation and attribution of buy/sell lists.
RCloud is currently engaged by the Credit Risk Management team of a Tier 1 Bank to review the existing laborious and Error-prone process to clear OTC derivatives through Central Counterparty Clearing Houses (CCPs). Manual human effort required on a daily basis in collating the data from over 50 CCPs and then validating it.
RCloud and its Risk technology partner can help provide an integrated solution to provide industry standard risk models and analytics on the cloud. From producing PnL attribution, Greeks, scenario analysis we can provide more customised reports to support adhoc analysis. Data is available at the most granular level (trade-risk factor) and can be aggregated out of the box by any pre-defined hierarchy book, trader, portfolio, division.
RCloud is working on a use case to monitor the external facing payment interfaces of a financial institution using data mining and artificial intelligence to zoom in on ‘red flag’ payments. We are working with existing technology vendors in this space to put together an end to end solution for Financial Institutions to track 95% of Money Laundering and Fraud payments with minimal human effort.
The average financial firm spends US $60 million on KYC, customer on-boarding and customer due-diligence. Many of the currently manual tasks can be either fully or semi-automated to reduce human cost and improve accuracy. Some of these tasks include sourcing customer documentation, validating customer information, customer screening, regulatory monitoring, risk assessment and processing account closure.
If you have a banking license and are looking to set up a challenger bank then there are some exciting products available on the market which provide out of the box software modules required to run Retail Bank. From internet banking, mobile banking to Account Opening and Customer Contact centre service you can buy these as white box modules and overlay the branding of your firm with customisation possible to your needs.