SMARTTECH – ARTIFICIAL INTELLEGENCE IN THE BANKING SECTOR SMARTTECH – ARTIFICIAL INTELLEGENCE IN THE BANKING SECTOR

Artificial intelligence and banks

Today many realms of everyday life are already permeated with artificial intelligence (AI). We encounter AI in the form of advanced driver assistance systems, speech and character recognition systems, facial recognition systems, the classification of websites according to search relevance and when using streaming services and online trading platforms, to name just a few.

But how can banks leverage the opportunities and advantages of artificial intelligence? To understand the potential uses this technology can provide added value for banks we first need a clearer picture of the status quo in banks and baking processes.

Increasing demands, manual processes

While the number of regulations and requirements for financial institutions continues to balloon, they’re also becoming increasingly complex and interrelated. That’s resulted in an ever-increasing burden in terms of manual processes. For example, there is already an overload in many areas; the (MaRisk) compliance areas in particular have been severely impacted. The high degree of subjective decision making means these processes are increasingly susceptible to errors. This has made certain employees a sort of intellectual monopoly – they have amassed particular technical knowledge that’s generally difficult to access. These circumstances have sometimes led to serious problems.

High costs, misallocation of resources, lack of transparency

The following problems stem from the current situation:

Cost inefficency

Responding to the increasing demands by hiring more personnel promotes inefficiencies and misjudges the development of automated solutions.

Time Lag

There’s no way to guarantee that changes to parameters can be identified early on and implemented them appropriately and holistically.

Insufficient transparency and interconnectedness

Control relevant KPIs can only be determined inadequately. The evaluation of the criticality of unstructured information (e.g. standards) to processes, organization, controls, risks and systems is insufficient as a result.

Quantitative and qualitative effects

Non-compliance leads to sanctions, including personal liability as well as the payment of penalties, capital add-ons as well as damage to your reputation.

Employee satisfaction and productivity

Long-term misallocation of personnel resources for repetitive tasks and projects leads to higher fluctuation and lower productivity.

Overdependence on employees

There is a long-term dependence on individual employees that results when intellectual monopolies form.

Since it is unlikely that the regulatory environment will become easier to navigate in the near term – indeed the trend towards stricter regulation of the financial sector is set to continue for the foreseeable future – -banks will have to find new answers to cope with these challenges. Let AI can be the key to your continued success.

Big Data… now what?

With the huge amount of data and unstructured information banks gather, it's virtually impossible to evaluate them by hand. AI enables an effective and efficient way to structure, analyze and evaluate this information and make decisions about the actions that should be taken. Coupled with Robotic Process Automation (RPA) and Predictive Analytics, entire sub-processes can be automated, which are then only subjected to quality assurance. Your advantage: when errors in QA are detected, AI learns from the errors and recalibrates its own decision-making parameters.

SmartTech – AI in banking processes

SmartTech is the AI application developed by SKS for automatically evaluating unstructured information. SmartTech to link to various areas, systems, processes, products, contracts, etc., in ways that make sense, meaning it has a broad range of applications for a variety of areas and processes.

MaRisk Compliance

Relevance assessment of new or amended standards and assignment to areas, processes or products.

Information Technology

Effects of changed parameters to existing systems and IT processes.

Risk

Fraud Detection, changed conditions in contracts, prepayment modeling, internal rating models

Internal revision

Identification of relevant standards as part of audit preparation, comparison of work instructions, organizational assignment

Loan department / Legal

Effects of changed parameters to existing contracts

Finance

Comparison of standards with organisational guidelines of the area (e.g. taxes, accounting)

The modular concept means SmartTech is customizable.

Looking for more ideas on how you can use AI in your financial institution?
Feel free to contact us!

Contact Strategic Advisory

Save resources, improve quality

We’re here with professional advice and technical support to help you optimize your business processes. We aim to improve both efficiency and user-friendliness in ways that align seamlessly with all regulatory requirements.

Example Regulatory-Compliance

Countless standards and regulations must ultimately be integrated into the bank's processes. Many banks are therefore already using standardized services such as RADAR to tackle the flood of information. However, these must then be read, evaluated and assigned by various departments (the specialist department and regulatory compliance respectively). Measures must then be taken to implement these standards.

SmartTech provides an efficient, secure and elegant solution.

Starting with the automated search of regulatory sources and accessing standards and laws, our AI checks their relevance for your particular institution. That means multiple employees working tediously to check each individual standard manually is now a thing of the past.

The key element that SmartTech such an elegant solution is the fully automated assignment of relevant standards and other unstructured information to business areas, written orders, products, processes, contracts and/or systems – all that within in a matter of seconds. This saves an enormous amount of time and money, helps you unlock the power of new innovation and drastically reduces error rates.

Other functions make your noticeably streamline your processes, including how SmartTech summarizes of complex standards and laws in just a few keywords and displays results in ways that are structured and intuitive for users.

SmartTech in use

SmartTech has already been tried and tested in a range of application contexts by both banks and other service providers in the financial sector. For example, SmartTech can be used to access standards from various sources, assess their relevance for a specific institute, and assign standards and work instructions to organizational units. The continuous improvements we've continued making based on prior experience has enabled us to bring you a market-ready, intelligent tool for processing unstructured information fully automatically.

SmartTech – Be one Step ahead!

The version that works for you!

Our offer for your customized AI-powered SmartTech solution.
Select the optimal model for your institution!

All in One
SmartTech as an integrated module in interexa’s RWC.

Reap the benefits of all of SmartTech's functionalities, from standards screening and creating a customized regulatory portfolio to assigning and tracking measures, responsibilities and implementation.

Your advantage:
A holistic solution for Regulatory Compliance!

SmartTech only
Use SmartTech as a stand-alone solution and integrate it into your existing processes.

Take advantage of the variety of uses our AI offers.

Your advantage:
AI-supported relevance assessment and assignment to areas, sfO and products on your own!

AI-Service
Take advantage of SmartTech without the need for additional implementation.

SKS offers the relevance assessment and assignment as a service within a defined turn-around time.

Your advantage:
AI-supported relevance assessment and assignment to areas, organisational guidelines and if desired to products on your own as an external service!

Why SKS?

Unbeatable expertise
We have a well-oiled team of specialists and mathematicians that has been working intensively for years to unlock the potential of machine learning and put it to good use.

On the cutting edge of science
We immerse ourselves continuously in the leading research and literature and maintain close contact with scientists working in the field of machine learning. That means we’re always only a few clicks away from accessing state-of-the-art innovations we put to work for you.

Expertise in the banking sector
We’ve been a preferred provider for consulting services in the financial industry for over 20 years. Having developed, maintained and optimized RADAR, we have extensive experience in evaluating norms.

Versatility
We integrate a wide range of knowledge into our projects in order to examine individual problems from different perspectives and to find the optimal solution.

Act now!

We've got your back – from planning to successfully implementing your project within your organization. Whether you're interested in knowing more about what SmartTech can do for your bank or if you'd like a proof of concept and feasibility analysis done for your organization, contact us today!