• Subscribe
  • Contact Us
  • About LendIt Fintech News
  • Home
  • Menu Item
  • Menu Item
  • Menu Item
  • Menu Item

Lend Academy

LendIt Fintech News: Daily Coverage of Fintech & Online Lending


  • Editorial
  • Daily News
  • Podcast
  • Investor Forum
  • Events

IBM Watson Just Bought A Company That Will Transform Bank Back Offices Through Artificial Intelligence

Watson is going to help automate regulatory compliance for financial services firms but that is just the beginning.

February 2, 2017 By Todd Anderson 2 Comments

Views: 134

IBM_Watson_AI_Promontory Financial_Group

The running joke is that after Dodd-Frank banks have become compliance companies that happen to make loans. It is funny because it is true. Dodd-Frank has over 22,000 pages of compliance regulation. Who can possibly understand and navigate all of that regulation?

There is one company that is widely regarded as the ultimate Dodd-Frank expert. This company is based in Washington D.C. and is hired by every major bank to help navigate these complex regulations. This company is called Promontory Financial Group and it is comprised of the all of the heavy hitters in bank regulation. Check out their firm leadership page, it includes senior leaders from the Fed, Treasury, White House, World Bank, Fannie Mae, FDIC and the OCC. They even have the former Vice Chairman of Citigroup and a Senator that was on the Senate Banking Committee for over 18 years. This firm has the who’s who of bank regulation.

Ever since Dodd-Frank was passed, banks have spent big time on compliance. It is a bull market for Promontory, which has helped everyone figure out those 22,000 pages of compliance. In order to put it into perspective, check out this WSJ chart from May 2016:

“The six largest U.S. banks by assets in 2013 together spent at least $70.2 billion that year on regulatory compliance, up from $34.7 billion in 2007, according to the most recent study by policy-analysis firm Federal Financial Analytics Inc., which said costs have continued to mount since then.”

The smart people at IBM took note of this massive shift in spend and the enormous regulatory problem for banks, they have the perfect solution – Watson. What if you take that 22,000 page book and you let Watson read it and then give advice? Let the computer figure it out. That is exactly what IBM has in mind now that is has purchased Promontory.

“Promontory, combined with IBM’s deep industry expertise and Watson’s cognitive capabilities, will directly address the massive operational effort and manual cost of constantly changing regulation and risk management requirements. With the completion of the acquisition, Promontory will help accelerate IBM’s development of cognitive solutions for risk and compliance.” [Read more…]

Filed Under: Peer to Peer Lending Tagged With: artificial intelligence, dodd-frank, IBM, Promontory Financial Group, regulation, Watson

Views: 134

Investor Intelligence

Peter Renton's Returns

Investor Forum

Lending Club Review

Prosper Review

Investor Resources

Most Popular Editorials

The Pure Marketplace Lending Model is Dead, the Hybrid Takes its Place

The 2018 Lending Club and Prosper Tax Guide

My Returns at Lending Club and Prosper

Map of Available States for Lending Club and Prosper Investors

Banks and Marketplace Lending Platforms: Ideal Partners?

Subscribe to the Podcast

Subscribe to the Lend Academy Podcast on iTunes
Subscribe to the Lend Academy Podcast
List of Podcast Episodes

Archives

Follow @LendAcademy Follow @LendIt

ABOUT LENDIT FINTECH NEWS

LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

Recent Editorials

  • PitchIt Podcast Episode 2: Billie Simmons of Daylight
  • LendIt Fintech USA is Just Two Weeks Away
  • Top 10 Fintech News Stories for the Week Ending April 10, 2021
  • Podcast 293: Atif Siddiqi of Branch
  • Caring Consumer Collections Policies Gain Traction

Copyright © 2021 · Metro Pro Theme on Genesis Framework · WordPress · Log in