How Leading Banks Boost Risk Awareness with Content Intelligence

By Torey Hunt | March 9, 2021

The risk of failing to meet regulatory change is top of mind for all banks and financial institutions. The fines are steep and the damage to a brand can be long-lasting. Yet, the volume and complexity of documents living in multiple siloed systems makes it difficult to determine what is relevant. To make matters more challenging, these companies must also adhere to rules imposed by a number of governing bodies.

Between increasing compliance costs and the time and effort to manually comb through vast amounts of unstructured data, it’s no wonder banks feel vulnerable when it comes to managing risk. Increasing regulations and consumer demand for privacy make it more important than ever to properly manage PII compliance.

Here are a handful of use cases that demonstrate how a robust Content Intelligence solution can help banks evaluate and manage risk:

LIBOR is Still at Play 

As banks transition away from LIBOR to an alternate rate, there is an implied impact to P&L impacting either the client or the bank. A comprehensive solution will extract critical information efficiently and effectively from complex documents, so banks can strategically plan LIBOR transition and reduce risk while they’re at it.

The Impact of Covid-19 on Force Majeure 

If force majeure clauses exist within a contract, they allow clients to re-open negotiations with financial institutions on the terms and rates of a loan. Being able to identify those exposures ahead of time will enable banks to plan ahead and mitigate risk to cashflow and repayment.

Stay Two Steps Ahead of IFRS 17

Staying compliant with ongoing regulatory changes like IFRS 17 requires deep access to data hidden in contracts and complex documents. The key is to be able to find, clean, report, and act on long-dated contracts associated with IFRS.

Reach M&A ROI Faster

Combining companies will only be as successful as the contract analysis done before, during, and after a merger or acquisition. Automation and AI can surface previously inaccessible information that will help banks identify potential risk and uncover new business lines.

The Final Verdict

Banks don’t need to invest in more than one software solution to satisfy the vast and growing number of regulations coming at them. They just need to adopt a proactive approach to finding out what kind of intelligent data they are sitting on and how it can alleviate their burdens and reveal new opportunities. Once complex document data is routinely leveraged through a Content Intelligence platform, banks will be in charge of the inherent risk they carry. This will allow them to focus higher-value efforts on creating a rich customer experience to remain as competitive as possible.

 

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