IBM Watson Financial Services is a suite of cognitive solutions designed to assist financial institution professionals in managing their regulatory, fiduciary, and risk management responsibilities. Here’s an overview of what the product does and its key features:
Purpose and Scope
IBM Watson Financial Services leverages IBM’s artificial intelligence (AI) and cognitive computing platform, Watson, to address the complex and ever-evolving regulatory landscape in the financial services sector. This suite of solutions is aimed at helping financial institutions understand and comply with regulatory requirements, detect and manage financial crimes, and optimize financial risk management.
Key Features and Functionality
Regulatory Compliance
- Watson Regulatory Compliance uses natural language processing (NLP) to understand and analyze regulatory requirements from over 200 different sources. This feature provides compliance professionals with a customized and searchable library of regulatory requirements, allowing them to identify and track obligations specific to their business. It enables filtering by geography, line of business, product, process, and compliance area, and allows subscriptions to relevant parts of the regulation.
Financial Crimes Insight
- IBM Financial Crimes Insight with Watson applies cognitive computing, intelligent robotic process automation, identity resolution, network analysis, and machine learning to enhance due diligence activities. It helps organizations manage Anti-Money Laundering (AML) alerts more effectively, reduce false positives, and speed up case investigations. This solution integrates with Promontory Financial Group’s expertise to improve customer verification and adverse news collection for Know Your Customer (KYC) requirements.
Financial Risk Management
- The solution integrates big data technology with core risk data management applications, such as Algo One, to enable financial firms to examine risk more quickly and intuitively. It utilizes both structured and unstructured data to encourage decision-makers to ask more complex questions and obtain better answers faster when developing new business strategies. Initial solutions focus on liquidity, application lifecycle management, and market risk.
Advanced Analytics and Automation
- IBM Watson Financial Services includes automated predictive analytics, accessible advanced analytics, and one-click analysis. These features allow for quick data analysis, automated model building, and the ability to connect to data without complex preparation. The platform also supports smart data discovery, enabling users to gain deep insights into their data through conversational interactions and automated insights.
Integration and Deployment
- The solutions are available on the IBM Cloud, allowing financial institutions to deploy them without significant investment in in-house computing hardware. This cloud environment enables businesses to start small and pay for what they use, making it a scalable and cost-effective option.
Machine Learning and Natural Language Processing
- Watson’s machine learning algorithms and NLP capabilities are central to its functionality. These enable the analysis of various data sources to detect potential signs of fraud or other financial risks, create accurate financial forecasts by analyzing market trends, and build sophisticated chatbots for enhanced customer service.
In summary, IBM Watson Financial Services is a powerful tool that leverages AI, cognitive computing, and advanced analytics to help financial institutions navigate regulatory complexities, manage financial crimes, and optimize risk management. Its key features include regulatory compliance tools, financial crimes insight, financial risk management solutions, and advanced analytics capabilities, all integrated within a scalable cloud environment.