Accelerating compliance to generate value

One of our largest banking clients in Portugal was facing significant challenges in the field of compliance, due to ineffective, largely manual processes that were dependent on specialist teams. With tougher regulatory demands and the need for a more agile and accurate response to national and international standards, optimising these processes became a critical priority. The aim was to achieve improved operational efficiency, reduce human error and boost the capacity to detect and mitigate financial risks, in particular those of criminal activity, such as money laundering and terrorist financing.

KPMG conducted an in-depth review and advanced calibration of the client’s financial crime prevention and detection systems. This involved designing and implementing a solution based on artificial intelligence (“AI”) and machine learning (“ML”), which enabled:

• Automation of critical processes, reducing human intervention in repetitive low-value added tasks.
• Improved operational efficiency, through use of predictive models able to detect suspicious patterns in large volumes of data.
• Integration with existing systems, ensuring a smooth transition and greater adaptability to the demands of the sector.
• Reduction of false positives, so that resources could be better allocated to more relevant investigations.
• Empowerment of internal teams, ensuring knowledge transfer and effective adoption of new technologies.

• By implementing this solution, the client achieved significant gains at both operational and strategic levels:
• Dramatic time savings in analysis and backlog processing, enabling a faster and more effective response.
• More effective identification of suspicious situations, through use of machine learning models which are constantly learning and improving.
• Reduction in the teams’ manual workload, enabling them to focus on more strategic and higher-value tasks.
• Stricter compliance with regulatory requirements, lowering risks of non-compliance and potential penalties.
• Improved customer experience, thanks to optimised information request processes and monitoring of suspicious activities.
• Increased transparency and traceability in processes, making audits more agile and effective.

With this approach, KPMG not only modernised the client’s processes, but also provided a sustainable strategy, ready to be scaled up for future regulatory needs and challenges in the financial sector.