New suite of accelerators will afford financial institutions greater control over regulatory and risk processes while optimizing related processes
Synechron, Inc, the global financial services consulting and technology services provider, has today announced the launch of its RegTech Accelerator program. Synechron’s RegTech Accelerators are focused on financial services applications to increase efficiency in processes relating to regulatory compliance. By leveraging Synechron’s unique combination of expertise in business consulting, technology, and digital experience, its RegTech Accelerators were created to give financial organizations the benefit of increased control through technology, which will allow for greater transparency, more efficiency, better data quality, and better overall management of risk and regulatory compliance.
Taking into consideration the vast number of regulations impacting global firms recently and those that are scheduled through the next few years, and the estimation that financial institutions will spend up to 10% of their total revenue on compliance by 2022, each of Synechron’s six RegTech Accelerators has been designed to address specific regulatory challenges, including solutions for the following regulations: Anti-Money Laundering (AML), Know Your Customer (KYC), Basel III, International Financial Reporting Standards (IFRS) 9, the Generally Accepted Accounting Principles (GAAP) and the Fundamental Review of the Trading Book (FRTB). While creating more control over processes for financial institutions, the Accelerators may also benefit users by reducing compliance costs and making regulatory compliance and risk management quicker, simpler, and more efficient as firms adjust to the evolving global regulatory landscape. Synechron’s Accelerator program is supported by best-in-class partnerships, including with data lineage solution provider Solidatus.
The overarching trend which the Accelerators have been designed to address key themes within regulatory obligations and concerns. Each accelerator has been categorized in the corresponding regulatory theme as follows:
- Capital Walkforward Accelerator: With a combination of Machine Learning and Natural Language Generation (NLG), this Accelerator automates the variance calculation process, as well as identifies influencing factors, and generates required commentary for manual validation and distribution. This assists firms in Basel requirements for Capital Numbers reports and improves efficiency as it is quicker and less error-prone than human processing.
- Fundamental Review of the Trading Book (FRTB) Accelerator: This Accelerator automates FRTB calculations requiring the Standard Approach to modelling risk using a Spark-based data analytics platform, addressing the key areas – Sensitivity Based Approach, Default Risk Charge, and Residual Risk Add-on, offering a greater degree of control against using internal risk models.
Client Lifecycle Management (CLM)
- KYC Remediation Accelerator: The KYC accelerator uses Optical Character Recognition (OCR) to scan documents and Natural Language Processing (NLP) to analyze the data, eliminating manual processes and ensuring companies are controlling and managing their KYC exposures.
Legal & Compliance
- Information Governance and Records Management Accelerator: This Accelerator addresses the inconsistencies in record keeping due to the high level of unstructured records banks are producing today, which are unsupported by the current manual processes used for traditional paper records, by applying automation to analysis, classification, and retention of unstructured documents for varying records management requirements using OCR and NLP to populate forms from the records data and create full audit trails.
- Intelligent Controls Testing Accelerator: The intelligent Controls Testing Accelerator delivers an intelligent analytics platform boasting Data Science and Predictive Analytics to automate the current manual and tedious testing processes. This allows firms to trial its enterprise risk management systems, rather than rely on manual tests on the first line of defense (1LOD).
Finance & Treasury
- Accounting Standard Normalizer: Synechron’s Accelerator for Accounting Standards delivers a data analytics framework with a microservices architecture to input proprietary credit risk models and use real-time data to run calculations for global Expected Credit Loss (ECL) calculations. The Accelerator addresses the challenges global banks face with varying global accounting reporting standards, like the US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) 9.
“Demand for smart solutions to regulatory challenges remains at an all-time high across the sector, and our Accelerator program is designed to help banks and insurers ramp up these efforts more quickly and efficiently as they move past a ‘check-the-box’ mentality regarding regulations, and look to innovative technologies to find creative solutions to addressing new and changing regulatory obligations.” Faisal Husain, Synechron Co-founder & CEO, said. “We continue to see huge demand for RegTech solutions from clients seeking more control over their activities and risks. The focus on the total cost of compliance is high-priority for financial institutions, and technology is the best enabler to address this challenge.”