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Fortune 50 Commercial Bank Solves Credit Risk and Improves Operational Efficiency

SUMMARY

By removing hundreds of hours spent manually reviewing entity data by internal teams, one of the world's largest commercial banks reduced its regulatory requirements and lowered its operational risk. 

THE STORY CustomerSuccess

Executives at one of the largest banking and capital market firms were wrestling with how to manage credit risk while decreasing operational risk. The company used an internal team to manually review entity data outsourced from a content provider. The data was insufficient and the teams were unable to provide corrections in a timely manner to keep up with industry standards and have confidence in remaining compliant. 
 
The firm needed a way to accurately classify industries with the entities they cared about. They needed to answer, "What is the classification of the industry for the company I am providing a loan facility for," for example. The original output resulted in about 120 important industry classifications among 120,000 entities at the time. 
 
During this time, the company was required to create an internal team to correct the information provided by the content vendor which resulted in an increase in operational risk. 
 
To reduce their exposure to operational risk, the firm searched for an alternative. This time around, executives played a role in reviewing the information before moving forward with a vendor, reviewing every single record from a POC consisting of 2,000 entities. The POC showed how they could accurately automate the gathering and sharing of necessary data for consumption by their subject matter experts. 
 
Using the Kingland Platform, the firm discovered they could accurately classify entities with truncated names and incomplete information and integrate the company's logic and interpretation with the platform to increase accuracy and value to the business. What started out as a POC covering about 2,000 entities has now become a reliable business solution that monitors and updates about 2 million records under management. 
 
The company has continued to increase the scale of its operation through the years and yet maintain the quality needed to lower their total cost of compliance. 
 

RESULTS:

  • Reduced time and effort to manually review entity data
  • Improved regulatory compliance
  • Decreased total cost of compliance
  • Reduced operational risk
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