New solution significantly strengthens and simplifies “Know Your Customer” processes

Intellect Design Arena Limited’s iGTB division, the world’s first comprehensive global transaction banking solution, announced today its partnership with OutsideIQ, the cognitive computing technology company, to deliver DDIQ: the most advanced due diligence screening tool for compliance.

“OutsideIQ’s DDIQ system has been designed to simultaneously strengthen and simplify the otherwise expensive, time-consuming and labour-intensive process of due diligence,” said Dan Adamson, CEO of OutsideIQ. “Capable of producing complete profiles of corporations and individual subjects in mere minutes, the solution combines the speed and efficiency of automated data discovery with the data interpretation skills of a human researcher.”

DDIQ:

• Incorporates cognitive computing and natural-language processing to create an adverse media search that is contextual and subject aware

• Addresses the challenge of false positives while simultaneously reducing the cost and time burdens associated with manually searched information

• Conducts the most comprehensive search available, with underlying sources ranging from regulatory databases and watch-lists to sanctions lists, politically-exposed person (PEP) lists, legal databases, the open web and premium structured content

• Flags potential high-risk suspects with discovered adverse media before that person or entity appears on official watch-lists

• Prepares auditable reports that can be re-run on a periodic basis without the need to re-assess previously reported data

• Significantly enhances KYC and due-diligence capabilities while allowing compliance professionals to focus their time elsewhere

“DDIQ’s ability to combine automation with humanlike interpretation is a godsend for banks, and in turn the security and stability of the underlying economy. Due diligence can no longer be restricted to conventional watch-lists, and must include unstructured sources, such as open and deep web searches, to accurately identify high-risk clients,” said Manish Maakan, CEO, iGTB. “This presents banks with a huge challenge, as the manpower required to understand and assess such information is truly enormous, yet the punishment for not doing so is even more significant. This partnership between Intellect and OutsideIQ will help solve this challenge.”

With the cost of breaking sanctions estimated at US$12 billion, financial institutions have been caught between the physical impossibility of manually tracking adverse-media results, and the limitations, false positives and out-of-context “noise” of automated due diligence.

In 2014, one large bank spent nearly US$1 billion on managing regulatory requirements, while another has added 5,000 people to its compliance team over the last three years, in the wake of a US$1.9 billion fine for not following AML reporting and prevention regulations. Intellect has a rich portfolio of risk management solutions, which includes Client Onboarding, Origination, Enterprise Limits, AML Transaction Monitoring and Exception Management. DDIQ technology can be integrated with Intellect’s solutions to deliver an enhanced transaction banking experience. iGTB, the global transaction banking arm of Intellect, will leverage its expertise in Liquidity, Supply Chain & Trade, Payments & Cash Management and Commercial Risk to deliver an advanced screening solution in collaboration with OutsideIQ.