26 Jul

Reimagining Financial Services: Unlocking Innovation and Mitigating Millions in Penalties

Tom Jenkin

Our client is one of the world’s largest and most highly regulated financial services organisations, handling billions of sensitive financial transactions on a daily basis. As with any major financial house, keeping up with an evolving regulatory landscape to avoid multi-million pound fines is integral. In order to mitigate that risk, the global organisation needed to strengthen operational resilience and its ability to model risk when it comes to its complex technology estate.

Working with Mesh-AI it will:
  1. Reduce the risk of tens of millions in fines, by complying with new regulation and strengthening operational resilience as a result of data democratisation and accelerated accessibility. 
  2. Harness a digital twin to manipulate data without shutting down live business services and causing disruption for customers, to accurately model the impact of cyber security, supplier concentration, legacy technology, and disaster risks. 
  3. Be better able to meet frequent regulator requests, by reducing the time needed for regulatory reporting to a matter of minutes, which previously took months.

The Challenge: Keeping pace with dynamic regulatory change

Our client must meet countless operational resilience requirements imposed by every single global financial regulatory body, in order to avoid millions in monetary penalties. The organisation needed to address the following challenges:

  • Keeping pace with a rapidly shifting regulatory landscape, yet our client was stuck with legacy tools and processes. This meant funds were regularly directed to modernise tech and patch issues in order to meet regulations.
  • Rapidly increasing cost of compliance, due to a model of outsourcing work for continuously increasing volumes of regulatory requests.
  • Responsiveness to regulators, which was challenged by siloed data and outsourced third-party manual processes.

The Solution: Breaking down silos and unlocking insights

We identified a clear opportunity to improve its operational resilience approach and accelerate compliance with regulation. We solved these challenges by:

Step 01: Shifting away from a rigid structure of storing data across multiple spreadsheets and systems, all held in different locations and domains, to a more accessible way of mapping the complex attributes and relationships in the organisation’s data. 

Step 02: Building a ‘digital twin’ replica based on live data, exposing areas of non-compliance, risks and inefficiencies. This unleashed reporting dashboards with live and accurate insights, enabling at-a-glance understanding of multiple regulations in one place so teams could see the necessary steps to becoming compliant.

Step 03: For the first time, enabling sophisticated scenario testing of software without shutting down products and services. This meant the impact and associated costs could be accurately understood without having to impact customer experience or losing revenue.

The Value to the Business: Protected from multi-millions in fines

We have protected the client from upwards of tens of millions in unnecessary fines from regulators across multiple locations. We have significantly strengthened its operational resilience approach, helping them protect customers. We also enabled them to report on compliance requests immediately, rather than in months. Cutting out that third party has saved additional millions in costs.

The client is now able to scenario test operational and technology risks, without disrupting services and resulting in lost revenue or incomplete products going to market, where the impact of these risks could have run into billions of pounds for customers on the markets. 

With a greater understanding of the probability and impact of potential disruptions, the client has greatly mitigated the damage, improved the products and services it sells and, in turn, customer experience. Using the reporting capability the digital twin enables, it can also provide customer confidence in an increasingly competitive market. Thanks to this new capability, the leading organisation’s operational resilience tools and processes are as dynamic as the organisational threats it faces.

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If you're interested in learning how Mesh-AI can work with your organisation to drive business defining investments in AI and Machine Learning, get in touch at hello@mesh-ai.com

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