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Solving financial regulatory compliance through crowd computing


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Financial regulations will ultimately reduce systemic risk in the financial services sector, but compliance is expensive, time-consuming, and complex for financial institutions. Crowd computing - the combination of machine learning and crowdsourcing - is a solution. The presentation was shown during a WatersTechnology Inside Reference Data webcast sponsored by WorkFusion to help viewers understand the potential that crowd computing offers financial businesses struggling with LEI, FATCA, EMIR, Solvency II, BSBS 239, and other data-intensive regulations.

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Solving financial regulatory compliance through crowd computing

  1. 1. 1. What is crowd computing? 2. Why is it the right approach for compliance? 3. How does it work?
  2. 2. “We’ll get back to competing with each other, but right now we’re competing with regulations.” Global Information Architect Very Big Bank (VBB) @ FIMA 2014 -
  3. 3. Compliance sucks time from work that generates $$$ and competitive advantage. AIFMD, EMIR, FATCA, LEI, MiFID, Solvency II, etc. Data Operations
  4. 4. Build vs. buy isn’t much of a debate these days. BUILD BUY Hiring is expensive and inflexible. Outsourcing is expensive and inflexible. vs.
  5. 5. 0 10 20 30 40 50 60 70 2012 2013 2014 2015 2016 2017 2018 2019 2020 300% increase MM 16.9mm The Internet changed how people do their jobs. Now it's fueling a generation of freelancers.“ ” FREELANCEWORKERS 65mm Crowdsourced and freelance workers provide a new world of capacity. SOURCES: “The state of independence in America, 2012,” < independence/docs/2012-MBO_Partners_State_of_Independence_Report.pdf; “Freelancers Get Jobs Via Web Services,” Wall Street Journal, May 29, 2013
  6. 6. VOLUME COMPEXITY JUDGMENT WORK REPETITIVE TASKS HIGH VALUE Crowd computing pairs these online workers with automation and SMEs. Employee experts (SMEs) Crowdsourcing Automation
  7. 7. “It’s adds scale without adding headcount or data licensing costs.” – WorkFusion customer BENEFITS:  Increase coverage and quality  Respond to regulations faster  Respond to volume bursts  Remove cost Crowd computing solves capacity, quality, speed, and $$$ problems.
  8. 8. Compliance case: LEI
  9. 9. LEI mapping sort of looks like this. Which is tedious. MULTI-SOURCE SINGLE SOURCE
  10. 10. UUID Generator START Canada lookup Multi- to Single source Nova Scotia lookup Quebec lookup Newfoundland lookup Manual lookup Not found? Active learning Fields Clean-up Address normalization Fields replacement FINISH Each regional lookup task includes: 1.Name lookup 2.Profile scraping 3.Reg info databasing Crowd computing automates and crowdsources the tedium.
  11. 11. Microtasking and data obfuscation ensure IP and data security. METHOD OF WORK Crowd computing platform
  12. 12. Statistical quality control (SQC) ensures accuracy S T A R T F I N I S H SOURCE TRAIN MANAGE Selects the best workers based on historical performance Administer training sets to achieve task proficiency Integrate existing QA methods and monitor 60+ signals from workers
  13. 13. The software provides an audit trail to ensure data is built from approved sources. S T A R T F I N I S H ALLOWED ALLOWED FORBIDDEN ALLOWED FORBIDDEN
  14. 14. +1-888-688-1324 Thanks for reading, and free to reach out to us with questions or ideas or to learn more.