Solving financial regulatory compliance through crowd computing
•Download as PPTX, PDF•
1 like•1,847 views
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.
Recommended
Recommended
More Related Content
What's hot
What's hot (17)
Viewers also liked
Viewers also liked (11)
Similar to Solving financial regulatory compliance through crowd computing
Similar to Solving financial regulatory compliance through crowd computing (20)
Recently uploaded
Recently uploaded (20)
Solving financial regulatory compliance through crowd computing
- 1. 1. What is crowd computing? 2. Why is it the right approach for compliance? 3. How does it work?
- 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. Compliance sucks time from work that generates $$$ and competitive advantage. AIFMD, EMIR, FATCA, LEI, MiFID, Solvency II, etc. Data Operations
- 4. Build vs. buy isn’t much of a debate these days. BUILD BUY Hiring is expensive and inflexible. Outsourcing is expensive and inflexible. vs.
- 5. 0 10 20 30 40 50 60 70 2012 2013 2014 2015 2016 2017 2018 2019 2020 300% increase MM 16.9mm The Internet changed how people do their jobs. Now it's fueling a generation of freelancers.“ ” FREELANCEWORKERS 65mm Crowdsourced and freelance workers provide a new world of capacity. SOURCES: “The state of independence in America, 2012,” <http://www.mbopartners.com/state-of- independence/docs/2012-MBO_Partners_State_of_Independence_Report.pdf; “Freelancers Get Jobs Via Web Services,” Wall Street Journal, May 29, 2013
- 6. VOLUME COMPEXITY JUDGMENT WORK REPETITIVE TASKS HIGH VALUE Crowd computing pairs these online workers with automation and SMEs. Employee experts (SMEs) Crowdsourcing Automation
- 7. “It’s adds scale without adding headcount or data licensing costs.” – WorkFusion customer BENEFITS: Increase coverage and quality Respond to regulations faster Respond to volume bursts Remove cost Crowd computing solves capacity, quality, speed, and $$$ problems.
- 9. LEI mapping sort of looks like this. Which is tedious. MULTI-SOURCE SINGLE SOURCE
- 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. Microtasking and data obfuscation ensure IP and data security. METHOD OF WORK Crowd computing platform
- 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. 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
- 15. info@workfusion.com +1-888-688-1324 Thanks for reading, and free to reach out to us with questions or ideas or to learn more.
Editor's Notes
- This was my favorite quote from a panelist at the FIMA event this past March. We’ll get back to competing with each other, but right now we’re competing with regulations.” There’s an awful lot of horsepower going into cracking and resourcing regulations, and there are still a lot of questions about how that’s going to happen.
- One thing that’s certain is that compliance isn’t going to make any business wildly rich. Compliance just requires institutions to communicate more data more frequently, and that’s a huge burden on businesses. It draws valuable resources away from profit generating work.
- There was a time when build vs buy was a thoughtful discussion, but when you really get down to it they both have the same disadvantages.
- There’s a third option to building or buying. You could kind of call it borrowing. HR firm MBO partners estimates that half of the US workforce will be freelance by 2020, and web access has changed the rules of work. Crowd and freelance workers presents a huge new capacity for business, particularly with work that’s highly process and data oriented like compliance.
- But crowdsourcing is only half of the story. The other half is automation and machine learning, and the combination of these resources and technology is what defines crowd computing. Crowd computing pairs machine learning with crowdsourced workers as a means not only of getting knowledge work done at massive scale but also as a means of creating the large data sets needed to teach machine algorithms to automate tasks. SMEs are included in the mix for higher value tasks that require true domain knowledge.
- As a method of work, crowd computing solves the problems inherent in compliance and provides better levels of coverage and accuracy, faster processing of work to meet regulatory due dates, elastic capacity to scale up to match spikes in activity, and it reduces the cost of compliance. One of our customers said it best when he said that crowd computing provides scale without adding headcount.
- The LEI has gotten a lot of attention the past few months, so I thought it’d be good to zero in on a case that’s relevant and interesting for both data providers and end users. The legal entity identifier.
- The typical LEI process kind of looks like a tree tipped on it’s side. You basically have to go from many many sources and information about a business and its operations and involvements into one source of truth, and that’s a lot of work.
- Crowd computing knocks that work off of the plate of SMEs by breaking the process into small tasks, automating those that are immediately repetitive, crowdsourcing exceptions, and using the crowdsourced data to train machine algorithms as a means of ultimately automating more work. What you see here is the step by step process that WorkFusion uses to reach a single source, that single source of truth. We have customers using a variation of this process for almost every market, but Canada seemed like a good one to look at mostly because I got to type Newfoundland on a powerpoint slide, which I’ve never done before.
- Crowd computing is actually a more secure way of getting work done than outsourcing in that it “shreds” a business process into its smallest tasks and distributes them to online workers after ensuring that any sensitive data have been obfuscated.
- WorkFusion’s SQC technology ensures the accurate output of crowdsourced workers during the sourcing, training, and management of each worker.
- WorkFusion also tracks and controls where workers source data, providing a complete audit trail of the work and all sources.
- Crowd computing as a method of work is vastly superior to all other forms of legacy workforce solutions, including direct crowdsourcing, managed crowdsourcing, and business process outsourcing (BPO).