The Challenge
- Inadequate or poorly-documented manual solutions using excel or home grown tools with inconsistent taxonomies causes inaccuracies and incompleteness within the lending process.
- Lack of integrated lending regulatory requirements into the lending operation processes
- No sophisticated way of mapping regulations to the lending policies, procedures, lending documents and disclosures.
- If your lending firm is a complex organization with multiple branches, in multiple states and countries, doing volumes of loans, typically organizations don’t have an integrated system that enables them to figure out which regulations apply to which branch office, loan and which internal controls.
- How do you make sure, your people are reading policies and converting the required into an action plan?
The Solution
- Regulatory change management software based on Artificial Intelligence (AI) with Regulatory / Standards and Requirements Intelligence Library with common taxonomy and centralized for lending multiple departments such as Reg AB, flood, CRA, HMDA etc
- Operational risk and compliance technology based on artificial intelligence automates mapping of lending regulations, standards, requirements to your policies, procedures, internal controls, risks and audi management software
- Big data approach to regulatory change management not only allows Integration of current regulatory requirements into lending processes, but enables you to make solid decisions with predictable outcomes
Value
- Automation of concept mapping policies and procedures with the regulations and sending out automated alerts and tasks when regulations or policies change, drives operational efficiency, reduce cost, increases quality and happy employees. This is highly valuable when you are processing volumes of loans
A Case Study
Challenge: A large mortgage lender company was using sharepoint for their policies & procedures, another system for their regulatory change management, Archer for their task management system and DocuSign for e-signature. They had to use Archer because other departments were using it. Their challenge was that they had three different systems and none of the systems talked to each other. They wanted a system that would automate selected users to be alerted and tasked when the lending regulations or policies changed.
Solution: Since Predict360’s regulatory change management software, policies procedures mgmt. and internal controls library is a self-contained integrated tool and built-on artificial Intelligence technology, we were able to demonstrate how once upload a policy, into the document management system, it breaks down the sections within policies and maps them to the regulations or standards, send you alerts and automates the process of assigning tasks and action plans.
- Policy, procedure and disclosure document is all integrated product with docu-sign for eSignature including a workflow to accept, review, version control, e-sign and maintains audit trail.
- This automation of alerts and (CAPA) corrective and preventive action plan assignment process works in both scenarios – 1. If the lending regulations or standards change or if the policy and procedure changes.
- As the lending policies are implemented and as activities are performed, they are concept mapped to other artifacts in the system: Regulations/Internal requirements -> polices -> procedures -> CIP /EDN -> Controls – > Tasks.
- The below should explain how Predict360 uses artificial intelligence to concept mapping process to create relationships between disparate unstructured data; in this case a policy & procedure doc and a regulatory requirement.
How to Automate Tasks through Your Policy and Procedure Management System
Step 1- Policy & Procedure document either in word or PDF is uploaded into Document Management System
Step 2- The PDF or word format policy or procedure then is converted to HTML and then chunked into sections.
Step 3- Looking at the “Document Sections” you can see how it broke up the document into logical sections. Each section is concept mapped. When this is done, relationships can be created manually (“Associate Requirements”) or they can be suggested based upon the concepts that the system derives from the content.
Step 4. Finally, you can see in Unified Change Management (the home for requirements) how the requirements have been Concept mapped too. It is these concepts the system uses to infer relationships between content. The system tem automatically generates tasks to specific user group
If you would like a complimentary 60-minute advice on Automating Regulatory Change Management or would like for us to do a proof of concept for you, please fill out the form and we will respond within 24 hours.
If you would like a complimentary 60-minute advice on Automating Regulatory Change Management or would like for us to do a proof of concept for,
please contact us
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