New governance capabilities for financial crime and compliance management help banks boost the transparency and fairness of AI models to help address regulatory obligationsAustin, Texas—October 4, 2021
A recent World Economic Forum survey found that 85% of financial institutions have implemented AI, but some still have concerns about its use. To help financial institutions apply AI responsibly, Oracle has added new AI governance capabilities to its Oracle Financial Services Compliance Studio application. With a new visualization canvas that fosters more inclusive machine learning model creation, alerts for potentially sensitive issues, and new in-memory sandboxes to more easily create and refine models, banks can help weed out bias and uncertainty in applying the power of AI to fight money laundering and other financial crimes. These new model management and governance capabilities will also soon be implemented with PwC’s Model Edge solution.
Oracle Financial Services Compliance Studio is an advanced analytics application for financial institutions that supercharges anti-money laundering and anti-financial crime programs for more effective, efficient customer due diligence, transaction monitoring, and investigations. As part of the broader Oracle Financial Crime and Compliance Management suite, it offers built in AI, machine learning, graph analytics, and data management capabilities.
“There is clear consensus across financial institutions that AI and machine learning have tremendous potential to increase the effectiveness of anti-money laundering and other financial crime detection programs, and deliver higher efficiencies in the investigative process,” said John Edison, group vice president, software development, Oracle Financial Services. “However, there are hurdles to ensuring that AI is used responsibly and ethically in a way that is fair, transparent, and easily understood. The new capabilities in Oracle Financial Services Compliance Studio provide the right governance and controls required to meet these objectives.”
Current compliance processes for adopting AI within financial crime are often disconnected, error prone due to manual steps, and resource-intensive. With the new updates to Compliance Studio, banks can eliminate these obstacles to better address their governance and regulatory obligations. New features include:
“While many financial institutions are already using artificial intelligence to help detect money laundering and fraud, the management and governance of AI models tends to be manual and cumbersome, which leads to errors and inefficiency,” said Vikas Agarwal, Financial Crime Unit and Risk Products Leader at PwC. “Financial institutions need technology that helps make this ongoing process seamless and that provides a holistic, quantifiable picture of model risk through various dimensions. We look forward to working with Oracle and combining their model management and governance capabilities with our PwC product, Model Edge. Bringing this technology combination to the market will help ensure AI is used responsibly, documented well per model governance guidelines, and that any potential biases in models are identified and addressed.”
To learn more about Oracle Financial Crime and Compliance Management solutions visit our website at https://www.oracle.com/industries/financial-services/aml-and-financial-crime-compliance/.
 World Economic Forum and Cambridge Centre for Alternative Finance: Transforming Paradigms, A Global AI in Financial Services Survey – January 2020
Oracle Financial Services provides solutions for retail banking, corporate banking, payments, asset management, life insurance, annuities, and healthcare payers. With our comprehensive set of integrated digital and data platforms, banks and insurers are empowered to deliver next-generation financial services. We enable customer-centric transformation, support collaborative innovation, and drive efficiency. Our data and analytical platforms help financial institutions drive customer insight, integrate risk and finance, fight financial crime, and address their regulatory requirements. To learn more visit our website at www.oracle.com/industries/financial-services.
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