ComplianceCiti to digitize its trade compliance process using AI

Citi to digitize its trade compliance process using AI

Using AI, Citi will further digitize its trade compliance process with EY’s experience in the financial services sector and SAS’ analytics platform

Citi announced today a next generational project, with EY and SAS, using artificial intelligence (AI) to develop an advanced risk analytics scoring engine. EY’s risk and technology consulting experience, along with SAS Institute’s analytics platform, will help Citi’s Treasury and Trade Solutions (TTS) digitise its trade compliance processes.

The next generation project is being created to streamline the time-consuming, highly manual processes associated with reviewing high volumes of global trade transactions while ensuring regulatory compliance.

More context and usable data

The AI-based risk analytics scoring engine will provide more context and usable data for aiding decision makers in reviewing trade transactions.

The project will analyse global trade transactions in depth and can be scaled to deal with high volumes of daily transactions. Advanced analytics and natural language processing will be used to understand networks of related parties, unstructured data and customer activity better. The platform from SAS automates the process that combines analytics and bank policies to escalate transactions that may need further investigation.

John Ahearn, Global Head of Trade for Citi’s TTS said: “By leveraging innovation, we continue our strategic journey to drive digitization throughout our worldwide operations. We process 9 million transactions annually, and this project will help us optimize our processes from the back office to the front, by expanding the use of digitization, automation and advanced analytics.”

Valeria Sica, Global Head of Trade Services for Citi’s Treasury and Trade Solutions added: “This real-time solution will help us to be able to more efficiently detect transactions with potential compliance concerns up front.

“This solution assists in managing and comparing a large number of data points across current and prior transactions, which will provide more context and usable data to aid the decision maker in reviewing global trade transactions, which has traditionally been a very manual process across the industry.”

Effective and efficient monitoring

Stu Bradley, Vice President of Fraud and Security Intelligence at SAS commented: “Banks face almost overwhelming scale and complexity in the trade-finance sector and in compliance activities. SAS’ sophisticated analytics platform will help Citi drive more effective and efficient monitoring of trade transactions.

“The resulting performance and enhanced risk insights should lead to a better risk posture, improved response times for monitoring, and reduced operational costs.”

Jake Jacobson, EY US Managed Services CIO explained the criticality of going paper-less: “Trade compliance is a key focus for global regulators, and this drives increasing expectations about the scope and sophistication of a bank’s controls. Many banks still rely on manual, paper-based processes, driving up operational costs and impacting the customer experience. Innovative technology helps change the game entirely.”

Foster innovation and drive growth through AI

Citi digital strategy has included using optional character recognition (OCR) to digitise over 25MM trade-related pages annually and now, using AI to automate manual processes. NextGen project will deploy advanced analytics and natural language processing to sift through this trove of data to better understand networks of related parties, unstructured data and customer activity over time.

The ongoing shift to cloud computing, the explosion of big data, and the widespread deployment of artificial intelligence/machine learning have transformed the way companies of all sizes build and buy technology, while opening up a range of new partnership models and opportunities.

Thanks to continuous developments, AI is slowly being integrated into a wider range of financial processes and presents the financial domain with incredible opportunities moving forward. Over the past few years, the use of advanced artificial intelligence in corporate banking has been accelerating. This progress enables in envisioning what a cognitive corporate bank could look like.

Last month, IT heavyweight IBM and mass media firm Thomson Reuters joined forces to help banks tackle perennial regulatory compliance changes by combining artificial intelligence (AI) with real-time regulatory insights.

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