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:
Risk
·
Capital Walk forward
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.”
