Ireland-based Fenergo has launched AI-powered client lifecycle management (CLM) to enable efficiency gains amid intensifying regulation and cost challenges. The introduction of AI to Fenergo’s CLM, powered by Amazon Bedrock, will enable companies to accurately identify and mitigate financial crime risk and meet regulatory obligations for KYC, AML, and sanctions measures.

Consequently, firms will be able to safely deliver more efficient, frictionless onboarding and lifecycle management journeys while accelerating time to revenue. Fenergo’s AI launch comes amid a period of increased regulatory flux and financial crime sophistication. This, combined with pinched resources and inadequate legacy systems for financial crime, creates a challenging environment for financial institutions, energy firms, and corporates mandated to address financial crime.

According to data from Fenergo, penalties for failing to comply with AML, KYC, ESG, sanctions, and CDD regulations totalled USD 6.6 billion in 2023 – up considerably from USD 4.2 billion in 2022. Fenergo’s new offering encompasses three separate AI functionalities - scheduled for release between the time of this announcement and Q4 of 2024 – which include Intelligent Document Processing (IDP), Advanced Reporting, and AI Assistant. These new capabilities will automate labour-intensive and time-consuming tasks related to client onboarding, due diligence, and regulatory reporting.

Intelligent Document Processing Fenergo’s IDP feature can reduce manual document handling by 72% for a typical corporate onboarding case encompassing the collection and analysis of 100 documents for 150 data fields. A recent survey by Fenergo found that nearly half (48%) of banks globally admitted they have lost clients due to slow or inefficient onboarding, 45% of which claim to be a result of poor document and data management. Fenergo’s IDP automates complex and labour-intensive document management tasks including data and metadata extraction, classification, document auto-linking, data absorption, and auto-task completion.

The AI transforms end-user experiences by removing friction from client interactions while delivering process efficiency gains and cost savings through eliminated human error and increased productivity. No-Code Advanced Reporting The advanced reporting module augments compliance professionals with no-code AI-driven advanced reporting. This enables analysts to create new reporting queries (relating to client information and onboarding journey statuses) regardless of their coding proficiency, boosting efficiency and accessibility for employees performing regulatory reporting.

Leveraging native Amazon Web Services (AWS) AI capabilities, Fenergo advanced reporting also encompasses features that enable users to create AI-generated advanced analytics visualisations. This enables users to glean actionable insights for faster decision making. AI Assistant Scheduled for release in late 2024, Fenergo’s AI assistant leverages generative AI and natural language processing (NLP) to enable firms to achieve considerable time and cost savings, alleviate workloads and more efficiently manage risk.

Officials from Fenergo said that tegulators 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. 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 AI 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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