Technology Category
- Analytics & Modeling - Machine Learning
- Sensors - Liquid Detection Sensors
Applicable Industries
- Education
- Finance & Insurance
Applicable Functions
- Quality Assurance
Use Cases
- Time Sensitive Networking
- Virtual Training
Services
- System Integration
- Training
About The Customer
The customer in this case study is a global custodial bank. As a financial institution, it is obligated by government policies to carry out customer due diligence as part of customer onboarding. This includes identifying and verifying the identity of beneficial owners of legal entity customers to comply with Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) laws and regulations. The bank processes over 10,000 documents each year as part of its KYC process, with hundreds of analysts spending significant amounts of time reviewing and transcribing 10-Ks. The bank was looking for a solution that could automate this process, save time, and ensure compliance with changing regulations.
The Challenge
A global custodial bank was facing a significant challenge in its Know Your Customer (KYC) process. Analysts and investment managers were spending over 10,000 hours annually reviewing and transcribing 10-Ks, which are critical for verifying a company’s identity, establishing a risk profile, and informing multiple business processes. The bank was processing over 10,000 documents each year, with each document taking 30-90 minutes to review. The process was further complicated by the fact that 10-Ks come in various formats, and if any information was missing or incorrect, analysts had to spend additional time hunting it down. This not only lengthened the customer onboarding process but also gave competitors an opportunity to swoop in. The bank had tried to solve the problem using a rule-based system, but it proved to be rigid and could only identify a narrow scope of information for certain document formats/layouts. The system also required frequent updates due to constant changes in regulations across several regions, which took months to implement.
The Solution
The bank turned to Snorkel Flow to build a data-centric AI application that could automate the KYC process. The bank’s data scientists, data engineers, machine learning engineers, and subject matter experts (SMEs) collaborated to build an AI-based solution that saved the team over 10,000 hours and hundreds of thousands of dollars in costs associated with hand-labeling data. The team achieved an +86 F1 macro score for risk profile with just 25 hours of SME time. In a few weeks, they created an AI application that takes PDFs of 10-Ks and extracts 50+ different attributes such as nature of business, location, key senior managers, and more from tables, raw text, and multi-page PDF documents. The application also classified extracted entities and carried out document-level aggregation before outputting all data to a structured tabular format for advanced analytics downstream. The team was able to ensure adaptability with rapid code edits to labeling functions, scale their ability to label complex, domain-specific text as training data, and improve collaboration between domain experts and data scientists across labeling, troubleshooting, and iteration.
Operational Impact
Quantitative Benefit
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