The Benefits of A.I. Powered Risk and Compliance Automation for Banks

Artificial intelligence-powered solutions are promising to deliver next-gen features to banks. A.I. will allow us to automate and streamline risk and compliance processes. When we look at the benefits these solutions can provide, it becomes clear why banks are implementing risk and compliance technology at an increasingly faster pace.

Faster and better risks assessments

With artificial intelligence in banking automation, it is possible to make a much more comprehensive and detailed risk analysis for all types of risks. When we talk about credit risks, these solutions can consider aspects such as consumption habits, banking history, behavioral patterns, and much more. In short, the ability to add variables to analysis, and to process them more quickly improves exponentially.

We can expect an in-depth analysis of all types of risks. For example, risk management solutions can simultaneously analyze more variables in relation to the country’s political and financial scenario, news, and other market movements to perform predictive analytics that helps the bank to anticipate potential risks and preemptively mitigate them.

Efficiency in combating compliance violations

Machine learning, in conjunction with AI, analyses real-time transactions and information to detect violations and give alerts in suspicious situations, mainly by assessing patterns in the company’s database. Banks can instantly detect if an account opening officer did not collect all the required documentation. The audit trail created by these solutions also provides a great countermeasure to fraud and compliance-related issues. Every action taken by employees when working with risk and compliance documentation is logged into the system, allowing banks to quickly detect anomalies and discover the source of problems.

This helps with regulatory inspections as well. Instead of having to dedicate resources to create extensive reports that show that the bank is taking the right steps to improve its risk and compliance framework, banks can now automatically generate reports and streamline the flow of risk assessments. They can provide extensive and exhaustive audit trails to regulatory bodies, which can reduce the time required for regulatory examinations.

Cost reductions

Manual risk and compliance require extensive labor hours. Risk and compliance are both highly specialized fields that require highly qualified and experienced personnel. Banks often have to limit the risk and compliance capabilities of their organization because the cost to expand risk and compliance teams is not sustainable for the bank’s bottom line. A.I. powered solutions can augment a bank’s risk and compliance teams, allowing them to deliver exponentially more value to the organization.

In this regard, in addition to reducing risks, artificial intelligence greatly reduces the time required for risk and compliance processes, which reduces the costs of operations. In fact, these same professionals can dedicate more time to managerial and decisive activities, while technology takes care of the heavy work and menial tasks that would otherwise take most of their time. This means that banks can increase profitability by reducing cost while still improving the way they manage risk and compliance.

Benefits for customers

A.I. powered solutions also promise to deliver many benefits to the customers of banks. By empowering banks to deliver better and faster compliance, these solutions enable banks to provide better and faster services to customers. Many banking processes can take multiple because of the compliance and risk-related tasks that need to be performed. Banks need to ensure that every account they open and every transaction that goes through the bank is compliant with rules and regulations. This requires a lot of cross-checking and information collection, most of which are handled manually in smaller banks.

Automation will allow banks to speed up banking processes to ensure that banking customers do not have to wait for their transactions to go through. Users will also gain access to more digital services when risk and compliance management are automated. There are many payment platforms available right now which enable instant payments and customers often wonder why their banking applications do not deliver the same functionality. The simplest answer is that the born-digital payment app does not have to worry about the rules and regulations that a bank does. Technology can help close this service gap and enable banks to deliver the functionality that banking customers want.

Want to see how an artificial intelligence-powered solution can help your bank automate risk and compliance processes? Get in touch with our experts to see a demonstration of our artificial intelligence-powered solution that has been endorsed by the American Bankers Association.