by  Elena Matova

Eliminate costly errors that risk non-compliance

clock-icon-white  5 min read

On the heels of a year when the SEC issued a record $6.4 billion in fines, regulators are intensifying their search for non-compliance. Troubles in the financial sector such as the failure of Silicon Valley Bank have brought greater scrutiny to financial services providers. You already deal with rigid regulatory guidelines, but they’re about to get even stricter.

In the face of evolving regulation, careless data entry and other easily avoidable errors put you at increased risk of falling out of compliance. However, faulty data is avoidable when you transform outdated manual methods of extracting and analyzing data.

Tech-enabled internal controls such as Intelligent document processing (IDP) improve data governance and are your key to maintaining regulatory compliance. IDP uses machine learning, optical character recognition (OCR), and natural language processing (NLP) to automate the process of extracting, compiling, and analyzing data from documents you use for onboarding clients, originating loans, and managing assets.

Ensure accurate data by removing human error

A common cause of non-compliance is an error in financial reporting caused by incomplete or inaccurate data. If your data is manually retrieved from application forms and proof of identification, it’s subject to human error.

It’s human nature to grow careless as you get tired or are rushing through a task. Important details in reports, applications, and conversions can be easily overlooked or incorrectly transcribed by fatigued or distracted workers. Simple mistakes that occur include:

Duplicated Data
Omitted Data
Data Discrepancies

Typos and inaccurate transcription

Duplicated data

Omitted data

Data discrepancies

Finding and correcting inaccurate data is a laborious process that slows down tasks such as customer onboarding and loan origination. However, correcting erroneous entries is essential to avoiding regulatory fines. You save time, effort, and money by avoiding simple mistakes from the start.

IDP eliminates the possibility of human error and ensures that your data is accurate and complete. It establishes its own QA and improves internal controls over data reporting. Improved data quality leads to greater efficiency in your document processing and promotes compliance.

Easily identify instances of non-compliance

Simple data entry errors are just one concern you have when processing financial documents. Failure to comply with KYC/AML regulations not only yields massive fines but tarnishes your reputation and could lead to sanctions or criminal charges.

Automation facilitates the identification of compliance issues and suspicious activity to keep you on the right side of regulatory guidelines. You can quickly process substantial amounts of data and check it against other databases to quickly ensure its authenticity.

IDP can be trained to flag documents that are not in compliance or contracts that don’t meet legal requirements. You will be alerted to:

Suspicious Transfers
Duplicate Invoices
Non-compliant Data

Suspicious transfers

Duplicate invoices

Inconsistent tax information

Non-compliant vendor data

Machine learning allows IDP to improve its ability to identify aberrant behavior and gain new insights when comparing data. When flags are raised about documents or accounts, your employees can step in for a detailed analysis to check for compliance. In addition to improving your ability to maintain compliance, IDP lets your employees move on from tedious data entry to higher level tasks such as investigating the cause of suspicious behavior.

Protect your reputation and your bottom line

You understand the importance of complying with regulations. As audits grow more robust, you need every tool available to mitigate the risk of running afoul of regulators. IDP optimizes compliance, you just need the right digital partner to tailor the solution to the rigorous guidelines of your sector.

With a team of financial services experts, SoftServe is your digital partner for automation and machine learning. We implement end-to-end solutions and customize models and processing tasks to adhere to your specific regulatory guidelines.

Let’s talk about how SoftServe’s financial services experts can automate regulatory compliance so you can avoid costly errors and streamline processes.