Adiante Recebíveis gains agility, flexibility and efficiency in risk decisioning with Provenir’s AI Solution
Adiante Recebíveis gains agility, flexibility and efficiency in risk decisioning with Provenir’s AI Solution
to loans.
According to a 2023 survey by MuleSoft and Deloitte, large enterprises now use an average of more than a thousand applications across their organization.
So what exactly is tech bloat, and how can you slim down your stack? Read on to find out more.
Referring to the excessive accumulation of outdated, redundant, or highly complex tech systems that weigh down an organization, tech bloat in financial services is becoming increasingly common. This phenomenon stems from a variety of causes, but the biggest tends to be an abundance of legacy systems that have been patched and repurposed over the years. Of course many financial services providers require very specific needs to be addressed (including everything from core banking systems and risk assessment models, to cybersecurity software, workflow automation, customer relationship management, financial planning and forecasting, data sources, fraud and identity management, loan origination software, and payment processing). As the list of needs (and related tech) grows with your organization, so does the bloat.
But many of the software solutions you have will overlap in functionality, leading to inefficiencies in both operation and cost. A survey by Freshworks shared that “54% of IT professionals say their organization pays for software” that never gets used. And often these systems are not integrated with each other very well, creating numerous silos of information, complicating workflows, and making data access tricky. Not to mention the fact that extensive customizations and add-ons over the years, while useful at first, can quickly turn into burdens, limiting flexibility and making maintenance and updates difficult. And of course those updates are critical, because with constant regulatory shifts, financial institutions do regularly need to update their systems, which can result in a quickly tangled web of temporary fixes that, you guessed it, add more bloat (not to mention leave you more vulnerable to everything from data breaches to lapses in compliance).
According to Freshworks, “the cost of trying to use unhelpful technology amounts to more than $84B annually in wasted time in the US alone, or $10M every hour of every day.”
Any of these consequences should be enough to address your tech bloat problem, but put them all together and you can see it’s not just about security or reducing operational costs – it’s fundamental to unlocking your potential for sustained innovation and sustainable growth. Streamlining your tech infrastructure allows you to overcome these challenges and position yourself for future success and customer loyalty.
Consider the case of Provenir customer NewDay. Some of their existing systems were proving costly in terms of release times and updates, and were due for decommissioning. By implementing more holistic risk decisioning software, they were able to significantly reduce processing time and improve quote response times.
second decisioning processing time
SLA for availability
improvement in speed of change
faster quote response
| 1. Conduct a Technology Audit: |
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| 2. Streamline and Consolidate: |
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| 3. Invest in Modern, Integrated Solutions: |
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| 4. Enhance Data Management and Governance: |
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| 5. Foster a Culture of Continuous Improvement: |
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| 6. Partner with the Right Tech Providers: |
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Part of fighting the bloat battle is selecting the right technology partner – one that can enable flexibility, scalability, and an end-to-end decisioning platform that you can build and grow your business on. Provenir’s AI-Powered Decisioning Platform brings together the key capabilities you need to turn decisioning into a differentiator, allowing you to deploy accurate, fully automated risk decisioning across the lifecycle, while also gaining actionable insights to optimize strategies and enhance performance across the entire organization. Featuring solutions for data, decisioning, case management, and decision intelligence, across onboarding, fraud & identity management, customer management and collections, Provenir’s platform is a one-stop solution that eliminates silos, brings teams together, and enables sustainable, customer-centric growth.
The connected vehicle payments market could reach $600 billion by 2030.
As we’re already witnessing, Generative AI will continue to have a massive impact. It is certainly making life easier in many ways (chat bots, personalized email and marketing campaigns, dynamic customer management, etc.), but it will also mean greater ease in testing products and models as new data sets are generated (which used to take an incredible amount of time when done manually). Generative AI could also help test different use cases for products and UAT testing (which is traditionally very difficult and time consuming). We can also use Generative AI to translate videos and documents in real-time, or even do live translations in meetings, increasing the serviceable markets of financial services providers who may have previously been limited by language or region.
AI in Banking market was worth $6794.27 million USD in 2023, and is expected to reach $36765.29 million USD by 2023 (CAGR of 32.5%)
Quantum computing promises to fundamentally change the capacity to process information by performing calculations at speeds unattainable by traditional computers, enabling the ability to execute complex risk simulations and fraud decisioning and detection algorithms. This speed enables quicker, and more informed risk decisoning for financial services providers. Quantum algorithms could simulate market reactions to economic events or stress test financial portfolios under a variety of conditions, providing insights at a speed and scale that just isn’t possible with today’s computation methods.
Globally, the financial services industry’s spending on quantum computing capabilities is expected to grow 233x from just US$80 million in 2022 to US$19 billion in 2032, growing at a 10-year CAGR of 72%
Offering a decentralized and secure platform that can transform traditional banking infrastructure, credit approvals, and monitoring systems, blockchain technology can make big waves in risk decisioning, with advancements in peer-to-peer lending, smart contracts, and fraud screening measures. With transparent and fixed record-keeping, the technology can streamline processes and reduce operational costs, automating credit decisioning and other transactional processes. And with blockhain’s inherent transparency, the reliability of financial data is improved, greatly enhancing fraud and identity management. When it comes to the increasingly important aspect of identity verification, blockchain can also be useful – enabling Self-Soverign Identity (SSI) and Decentralized Identifiers (DIDs). SSIs allow individuals to own and control their own digital identities, stored on a blockchain for maximum privacy and security, while DIDs use unique, blockchain-based identifiers that can be verified across different platforms without exposing personal data.
There is around $52 billion of value locked in DeFI, and global blockchain spending is expected to hit $19 billion this year
134 countries and currency unions, representing 98% of global GDP, are exploring a CBDC
The integration of the Internet of Things (IoT) in banking could provide continuous data streams to credit risk models, offering real-time insights into a potential borrower’s financial activities and habits, and ensuring more dynamic (and accurate) credit risk decisioning and lower default rates. For instance, data from smart home devices could inform lenders about a customer’s energy consumption patterns, which might correlate with financial stability or risk levels. This level of integration can lead to even more personalized risk assessments, potentially improving credit access and inclusion while mitigating risks for lenders.
IoT In Banking And Financial Services Market size is projected to reach USD $30925 Million by 2030, growing at a CAGR of 50.10% from 2023 to 2030.
Financial institutions are the second most impacted sector based on the number of reported data breaches; ransomware attacks on financial services increased from 55% in 2022 to 64% in 2023.
Global sustainable finance product issuance totalled $717 billion in the first half of 2023.
By the end of 2024, Gartner predicts 75% of the global population will have its personal data protected by modern privacy regulations.
Western Europe and Asia Pacific will potentially account for 50% of digital ID verification spend by 2028.
Technology has always had the power to drive significant change in all aspects of society, and future tech advancements will continue to alter how financial institutions operate and interact with their customers. A common theme running through all of these innovations is the ability to personalize products and offerings, highlighting the extreme importance of the customer experience. A prime example of this is dynamic, responsive onboarding – where financial services providers are tailoring the onboarding experience to individual customers by matching data checks (including identity verification, AML, KYC, and more) to the event risk and the responses of the customer. Depending on the consumer’s answers in an application, the actual application itself will change dynamically – populating additional responses required or minimizing friction with fewer questions if lower risk is determined.
Today’s consumers will no longer stand for long wait times, inadequate customer service, and mass-marketed products. Instead, a competitive edge requires rapid response times, omnichannel offerings, customized products, and frictionless experiences – all enabled by automated, real-time decisioning.
But the concept of ‘decisioning’ itself will also evolve. Currently financial services providers utilize specific triggers that result in a decision being made, whether that’s from the end-consumer applying for a product, or from a provider proactively analyzing data and making a decision to offer a new product. But with the increased availability of data, extremely fast processing speeds, and the enhanced use of AI to analyze data and behaviors, decisioning will become much more fluid. Rather than trigger points causing a decision, are we in for a future where decisions around customers and products/services are just continuous? Seamless? Always happening? This too will result in more hyper-personalization and a customer-centric approach in all aspects of financial services.
Done well, personalization at scale for banking customers can lead to annual revenue uplifts of 10%
As these technologies develop, Provenir continues to lead the charge, offering an advanced decision intelligence platform that is adaptable, efficient, and strategically forward-thinking. Discover why choosing Provenir is the best decision for managing risk in a technologically evolving landscape.
Unleash the power of Equifax alternative data and AI-powered credit risk decisioning from Provenir
There’s a lot of pressure for today’s financial services providers, as consumer debt (and delinquency rates) continue to rise. So how can you ensure easier access to credit for your creditworthy customers? In this blog from our Data Marketplace partner Equifax, they highlight how to boost operational efficiency with the one-two punch of Equifax data and Provenir’s AI-powered decisioning platform.
NEWS
The European Parliament has finalised a provisional agreement on groundbreaking artificial intelligence regulations paving the way for the world’s first legislation on AI, pending a vote by the legislative assembly in April.
Known as the AI Act, these new regulations aim to establish boundaries for a technology widely used across various industries, including banking, automotive, electronics, aviation, as well as for security and law enforcement purposes. Our own David Mirfield, VP of Product Management, shared his perspective on the impact the Act will have and the challenges organizations will still face.
What is a decision engine and how does it help your business processes?
NEWS
The European Union (EU) passed landmark artificial intelligence (AI) legislation setting the tone for future regulations across the Western world. The law makes the EU the second major bloc after China to legislate for mitigating the impacts of AI’s rapid development.
The law, when passed, will require “high-risk” AIs (including generative AI products like Open AI’s ChatGPT and Dall.E and Google‘s Gemini) to pass tests over bias, accuracy and transparency, as well as impose a myriad of regulations for smaller and less sensitive AIs.
The Verdict tapped industry experts, including our own David Mirfield, Vice President of Product Management, for their perspectives on the implications of the legislation on the future of AI development.
What is a decision engine and how does it help your business processes?
GUEST POST
Chris Green, CEO, Xapien
The role of compliance is to prevent actions that could break regulations or lead to any financial, reputational, or other risks that sit outside an organisation’s risk threshold. This entails having a comprehensive understanding of an organisation’s counterparts — clients, suppliers, and investors — to spot inconsistencies and potential red flags that point to regulatory or reputational risks. Only then can organisations make strategic decisions.
The work of compliance professionals hinges on the information accessible to them. Initially, this was confined to official state registries and government records like passports and incorporation documents. Over time, Politically Exposed Persons, sanctioned entities, and other risks surfaced, so databases were created to check against these risks.
However, in today’s digital landscape, the surge in publicly available information demands that compliance professionals extend their search to billions of internet pages for a comprehensive understanding of their counterparts.
This explosion of data has made the role hugely challenging and time consuming, with many compliance teams simply unable to afford deep due diligence across the entire indexed internet. Instead, they rely on traditional databases which limits what an organisation can know, and a few cursory internet searches. This exposes organisations to massive risk.
Whether harnessing internet data, or sticking to databases, the compliance process is time-consuming. Teams must review lengthy PDF reports, sift through numerous false positives, and read multiple pages to determine the relevance of data to the subject. The result? A slow compliance process that often takes place at the end of sales conversations, causing tension in relationships with business teams awaiting a decision.
Now, imagine if compliance professionals had the tools to reveal comprehensive insights about potential clients. What possibilities could this unlock for the entire business? These insights could be seamlessly shared across the organisation, enhancing sales conversations and transforming compliance from a business prevention department into a business enabler.
Due diligence could become the initial step rather than the final one in a sales process. Sales teams would depend on compliance to provide essential insights about potential clients before committing substantial time and effort to prospect conversations.
AI makes this possible. By connecting traditional data sources with the vast online information about third parties, compliance professionals who use Xapien’s AI tool can gain deep understanding of their counterparts in minutes, not days.
Our AI tool efficiently searches trillions of web pages, blending compliance data with open-source information for a nuanced understanding of third parties that goes beyond databases and watchlists. Using machine learning techniques, Xapien reads and extracts key insights from web pages. It does the grunt work that slows compliance teams, such as reading and reviewing to ensure the information gathered is directly related to the subject.
The next job of the compliance team is usually to write the report. Again, Xapien already does this. It writes concise summaries that are fully-sourced down to sentence level based on the information it finds. Huge time savings mean that Xapien reports can be run as the first, and not the last step in any sales or client onboarding process.
Running third parties through Xapien at the beginning of the compliance process helps identify early red flags. This proactive approach allows compliance teams to catch risks early in the process, preventing teams from investing resources in a deal that might not go ahead, but also unlocking useful insights about clients that the sales team can use in their conversations.
Eliminating multi-page PDFs and false positives enables compliance teams to focus on strategic thinking based on the information already analysed by Xapien. Having these sharable reports facilitates quicker decision-making with the business team on how to proceed.
One Xapien customer, a compliance team in a private equity firm, used a tool that added two hours for each new screening. Now, it takes an additional 10 minutes. This streamlined process ensures no delays in deals, enabling the business team to proceed more efficiently.
Partnering with Provenir has strengthened Xapien’s foothold in the AML-regulated sector and helped more businesses access fully-automated enhanced due diligence (EDD) reports on individuals and organisations. By automating manual research, it helps compliance teams scale their operations and, most importantly, catalyse revenue growth. If you’d like to learn more about how Xapien could help your organisation, get in touch with our team of experts here.
NEWS
Use of risk decisioning platforms often focuses on onboarding and loan origination, however investment in the beginning of the customer journey is only the start. A financial institution’s growth depends not only on attracting new customers, but also on maximizing the value of its existing customer base.
In this Financial IT feature, Kathy Stares, EVP, North America for Provenir, outlines the tools financial institutions can use to enable more accurate, faster decisions across the customer lifecycle to provide a superior experience and retain loyal customers (pages 32-33).
What is a decision engine and how does it help your business processes?