Fenergo, the leading provider of digital solutions for KYC, CLM and transaction monitoring, has launched AI Powered CLM.
This new set of AI capabilities aims to boost operational efficiencies, accelerate onboarding, and improve end-user experiences while reducing costs associated with KYC and AML compliance.
The introduction of AI to Fenergo’s CLM is driven by the need for firms to more accurately identify and mitigate financial crime risk while seamlessly meeting regulatory obligations for KYC, AML, and sanctions measures. This AI-powered offering is designed to empower firms to deliver more efficient, frictionless onboarding and lifecycle management journeys, ultimately accelerating time to revenue.
Fenergo’s AI launch comes at a time of increased regulatory flux and sophisticated financial crime activities. This challenging environment is compounded by limited resources and outdated legacy systems, making it difficult for financial institutions, energy firms, and corporates to address financial crime effectively. According to recent figures, penalties for failing to comply with AML, KYC, ESG, sanctions, and CDD regulations reached $6.6bn in 2023, up from $4.2bn in 2022.
Fenergo’s new offering includes three AI functionalities, scheduled for release between now and Q4: Intelligent Document Processing (IDP), Advanced Reporting, and AI Assistant. These capabilities aim to automate labour-intensive tasks related to client onboarding, due diligence, and regulatory reporting.
Fenergo’s IDP feature, available today, can reduce manual document handling by 72% for a typical corporate onboarding case, which involves the collection and analysis of 100 documents for 150 data fields. A recent survey by Fenergo revealed that nearly half (48%) of banks globally have lost clients due to slow or inefficient onboarding, with 45% attributing this to poor document and data management. The IDP automates complex document management tasks, enhancing end-user experiences by eliminating friction from client interactions and delivering significant efficiency gains and cost savings.
The advanced reporting module, also available now, empowers compliance professionals with no-code AI-driven advanced reporting. This enables analysts to create new reporting queries, regardless of their coding proficiency, thereby boosting efficiency and accessibility for regulatory reporting tasks. Leveraging native Amazon Web Services (AWS) AI capabilities, Fenergo’s advanced reporting features allow users to generate AI-driven analytics visualisations for actionable insights and faster decision-making.
Scheduled for release later this year, Fenergo’s AI assistant uses generative AI and natural language processing (NLP) to help firms achieve significant time and cost savings, alleviate workloads, and manage risk more efficiently.
“Regulators across the globe are tightening their grip on financial crime prevention, enforcing tougher penalties for compliance failures and launching new initiatives like the EU’s Anti-Money Laundering Authority,” said Fenergo chief strategy officer Stella Clarke. “Against this backdrop, it is crucial banks look to bolster their capabilities with regards to client onboarding, due diligence, and regulatory reporting – especially considering the growing shortage of compliance professionals globally. Harnessing the power of artificial intelligence and machine learning to deliver greater efficiencies can no longer be seen as a bonus in the context – it must be an integral element of their strategy.”
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