The Challenge

  • Due to frequent change in rules/regulations, compliance and risk professionals providing lending services are left to use inadequate or poorly-documented manual solutions like excel or home grown tools with inconsistent taxonomies resulting in inaccuracies and incompleteness.
  • Lack of integrated regulatory requirements into lending operation processes
  • No sophisticated way of mapping regulations to lending policies, procedures, lending documents and disclosures.
  • Typically lending firms having a complex organization with multiple branches, in multiple states and countries. They provide volumes of consumer loans, student loans and credit cards while lacking an integrated system that enables them to figure out which regulations apply to which branch office, which type of lending activity and which internal controls.
  • How to you make sure people are reading policies and converting the required into an action plan?

The Solution

  • Regulatory change management software based on Artificial Intelligence (AI) with Regulatory / Standards and Requirements Intelligence Library with common taxonomy and centralized for multiple departments.
  • Artificial intelligence automates mapping of consumer lending regulations, standards, and requirements to your policies, procedures, internal controls, risks and audits.
  • Big data approach to regulatory change management not only allows Integration of current regulatory requirements into lending processes, but enables you to make solid decisions with predictable outcomes.

Value

  • Automation of concept mapping policies and procedures with the regulations and sending out automated alerts and tasks when regulations or policies change, drives operational efficiency, reduces cost, increases quality and ensures happy employees. It also enables your lending institution to automatically figure out which regulations apply to which branch office, which type of lending activity and which internal controls.

A Case Study

Challenge: A large lending institution was using SharePoint for their policies & procedures, another system for their regulatory change management, docusign for e-signature and Archer for their task management system. They had to use Archer because other departments were using it. Their challenge was that they had three different systems and none of the systems talked to each other. They wanted a system that would automate selected users to be alerted and tasked when the lending regulations or policies changed. Solution: Since Predict360’s regulatory change management software, policies procedures mgmt. and internal controls library is a self-contained integrated tool and built-on artificial Intelligence technology, we were able to demonstrate how once upload a policy, into the document management system, it breaks down the sections within policies and maps them to the regulations or standards, send you alerts and automates the process of assigning tasks and action plans.

  • Policy, procedure and disclosure document is all integrated product with docu-sign for eSignature including a workflow to accept, review, version control, e-sign and maintains audit trail.
  • This automation of alerts and (CAPA) corrective and preventive action plan assignment process works in both scenarios – 1. If the lending regulations or standards change or if the policy and procedure changes.
  • As the lending policies are implemented and as activities are performed, they are concept mapped to other artifacts in the system: Regulations/Internal requirements -> polices -> procedures -> CIP /EDN -> Controls – > Tasks.
  • The below should explain how Predict360 uses artificial intelligence to concept mapping process to create relationships between disparate unstructured data; in this case a policy & procedure doc and a regulatory requirement.

How to Automate Tasks Through Your Policy and Procedure Management System

Step 1- Policy & Procedure document either in word or PDF is uploaded into Document Management System

Step 2- The PDF or word format policy or procedure then is converted to HTML and then chunked into sections.

Step 3- Looking at the “Document Sections” you can see how it broke up the document into logical sections. Each section is concept mapped. When this is done, relationships can be created manually (“Associate Requirements”) or they can be suggested based upon the concepts that the system derives from the content.

Step 4- Finally, you can see in Unified Change Management (the home for requirements) how the requirements have been Concept mapped too. It is these concepts the system uses to infer relationships between content. The system tem automatically generates tasks to specific user group.

If you would like a complimentary 60-minute consulting session on how to automate action plans when policy & regulation changes using artificial intelligence, please contact us.