About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Wolters Kluwer Pushes Forward AI Agenda With New Proof of Concept

Subscribe to our newsletter

In the latest step forward in the field of AI-driven regulatory reporting, Wolters Kluwer has completed a successful Proof of Concept (PoC) showing that a machine can learn how to take over any end-to-end regulatory reporting process for financial institutions and regulators, across every jurisdiction, by using historical source data and its corresponding regulatory submissions.

As global regulators impose ever more rigorous reporting obligations on financial institutions, regulatory reporting has become more onerous, with an increased risk of potential error. Emerging regulations require more prescriptive and highly granular data sets, reported in increasing frequencies. Financial institutions are therefore looking to new technologies, such as ML, to relieve these regulatory reporting burdens.

The latest PoC from Wolters Kluwer found that it is possible to build predictive models with high accuracy and flexibility that complement human judgement and oversight, making it likely that production reporting mechanisms will incorporate Machine Learning (ML) in the near future.

The PoC was trained on two separate end-to-end regulatory reporting processes: the Monetary Authority of Singapore’s MAS 610 and APRA’s Economic and Financial Statistics. After just a few minutes of training, a total of 250,000 records of previously unseen raw data (the ‘internal vocabulary’) containing 260 features (input) and 240 corresponding labels (output) were predicted with very high accuracy – in many cases, the corresponding regulatory reporting output was predicted with >99% accuracy.

“If humans are capable of designing processes which ultimately convert the financial institutions’ raw data into structured regulatory submissions, I see no reason why machines can’t learn to do the same. Our PoC shows that machines can indeed learn to take over any end-to-end regulatory reporting process for any financial institution and any regulator in any jurisdiction,” comments Wouter Delbaere, Director of APAC Regulatory Reporting for Wolters Kluwer FRR. “AI has the potential of disrupting today’s regulatory reporting landscape; rather than taking the traditional approach of explicitly creating deterministic logic, financial institutions can instead adopt machine learning to replace any existing regulatory reporting process with significantly reduced time and effort.”

Last year Wolters Kluwer FRR launched a software-as-a-service (SaaS) Regulatory Reporting solution, and also unveiled a major upgrade to its OneSumX Regulatory Engine.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Market Abuse Regulation: How to Detect and Analyse Abusive Market Transactions

Date: 28 March 2023 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Market abuse is a potential problem for many financial institutions. It typically covers insider dealing, unlawful disclosure of inside information, and market manipulation, and is often difficult to detect and report in line with regulations such as Market Abuse...

BLOG

Fenergo Perpetual KYC Service Offers Operational Efficiencies, Reduced Costs and Risk

Fenergo has joined early providers of perpetual KYC services with Smart Review, a solution designed to enable financial institutions to streamline periodic KYC review processes and reduce costs through automation. Smart Review automates the continuous monitoring of client profiles for KYC compliance by identifying all changes to relevant entity data, transactions and anti-money laundering (AML)...

EVENT

TradingTech Summit London

Now in its 12th year the TradingTech Summit London brings together the European trading technology capital markets industry, to explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...