In 2018, the Finance Conduct Authority (FCA) imposed fines totaling more than £60m for compliance breaches including failing to exercise due diligence in protecting account holders from cyber-attacks and oversight related to client assets. As we head into the second half of 2019, compliance concerns continue to consume vital resources. Holistic AI strategies, however, are proving to create cost-saving opportunities across key regulatory use cases allowing banks to address risk and prevent financial loss from regulatory actions. According to a recent report from Business Insider Intelligence, “The aggregate potential cost savings for banks from AI applications is estimated at $447 billion by 2023, with the front and middle office accounting for $416 billion of that total.” The potential for savings has resulted in a convergence of discussions and media coverage around AI use in banking. A recent survey commissioned by PwC found that financial services executives expect their AI efforts to result in increased revenue and profits, better customer experiences, and innovative new products. To that end, financial services leaders are embracing AI at an increasing rate and implementing AI-powered strategies to improve business efficiency.
At Seal, our dedicated Financial Services team is committed to helping the world’s leading banks and financial institutions address the risk, obligations, and opportunities tied up in their contracts. Led by Stuart Brock, Director of Financial Services & Procurement Solutions and Lynn Sumlin, Director of Financial Services Solutions, the team’s industry expertise in the application of AI puts them in a unique position to help guide financial services professionals in the mitigation of risk and identification of cost saving opportunities embedded in their contract corpuses. Both Stuart and Lynn have extensive practical experience within the banking industry and have contributed to market-leading discussions around the use of AI and contract analysis for financial services.
Given the criticality of contracts within the financial services sector, contact analysis poses a huge opportunity to solve regulatory problems and deliver significant value. Leveraging Seal’s AI-powered technology equips compliance and financial services teams with extensive insight into their contract portfolios, allowing them to have data-driven conversations and increase business visibility. In a webinar earlier this year, Lynn and Stuart shared real-world insights on how to use data extracted from contracts to drive the digital transformation of procurement processes not automated by ERP/P2P systems and contract lifecycle management tools. The discussion continued on with a look into 2019’s regulatory landscape including a continued focus on LIBOR transition, increased scrutiny of credit risk and ongoing changes to reporting requirements.
Seal Software’s market leader status in contract discovery and analytics combined with our robust and customizable set of Financial Services offerings make us an integral part of AI’s use within banking. When it comes to the analysis of contracts, our Financial Services Suite addresses pain points across a wide range of use cases including (but not limited to):
- Procurement and third-party risk
- ISDAs and similar trading and derivatives agreements
- Data privacy
- Complex NDA negotiation
As AI tools continue to empower users to manage their businesses more effectively across front, middle and back office channels, organizations are seeing the value-add. For more advice on how financial services and compliance professionals can operationalize the data within their contracts listen to the on-demand webinar.
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