Less cost, greater efficiency
Within the next three to five years, asset managers using sophisticated analytics, data integration, intelligent automation, NLP, AI, and other emerging technologies will not only be able to reduce the cost of compliance processes, but also make them more efficient and accurate. They will be able to simplify processes for investors and, at the same time, lessen the risk of expensive compliance failures.
Using emerging technologies to automate processes, compliance professionals can respond more effectively to changing regulatory and investor demands and focus on higher-value activities, such as deep diving into potential breaches at an earlier stage. Essentially, firms can be more proactive than reactive in managing risk.
With this in mind, the EY organization has been building a number of investment compliance accelerators. SARGE is the latest EY cloud-based AI solution for wealth and asset management firms. It is an ML and NLP-based tool that has been developed to read and extract investment guideline language from governing contracts, map it to current compliance rules and identify uncaptured language that exposes a liability.
At their core, tools such as SARGE can analyze, extract and categorize valuable information, while offering human-in-the-loop workflow capabilities for ongoing ML. The estimated end-to-end time savings using tools such as SARGE can be up to about 75% in the compliance space; its potential to drive improvements across the value chain within wealth and asset management extends beyond compliance, and into client onboarding; fees and billing; environmental, social and governance verifications; institutional requests for proposals (RFPs) and more.
In an industry that is evolving and innovating, with frequent changes to trading systems, regulations and product suites, tools such as SARGE facilitate a platform of continuous risk assessment.