Aptus.AI’s machine readable regulations get to Fintech Milano Hub


Aptus.AI’s technology selected by BankIT to support the Regulators 

As recently announced, Aptus.AI's technology has been selected among the first projects admitted to support the Fintech Milano Hub. In this context, we will have the opportunity to cooperate with national the Bank of Italy, thus taking into account the specific needs of the AI analysis on financial regulations starting from the drafting stage. And so to work in the direction of publishing the latter in a standard machine readable format, an issue that represents the core of the project presented to the Commission of the 2021 Call for Proposals.

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An innovative approach to create a holistic and multilingual RegTech as a Service

The idea behind this project is strictly related to the very essence of Aptus.AI, that is to enhance the information accessibility and therefore to empower humans in their understanding possibilities. In hyper-regulated contexts such as banking, finance and insurance, the accessibility of data, and in particular of regulations, is crucial to ensure both the efficiency and the sustainability of these sectors. The ability to write and publish regulations in machine readable format, exploiting Document AI tools (object of this post), will enhance Artificial Intelligence applied to the automatic analysis of regulations’ content. This will enable a model that can be defined RegTech as a Service (RaaS), which will considerably increase the effectiveness of the processes of understanding and analyzing regulations. In fact, the platform performs both a holistic regulatory analysis (AI engines support any regulatory area by design) and multilingual analysis (with more than 26 manageable languages), offering on-demand services to meet the needs of different categories of users, both with respect to regulatory and geographical areas. This solution therefore offers a quicker, more precise and exhaustive regulatory consultation, in a cross-regulatory and cross-country context, also helping reduce costs for the implementation of regulatory updates.

Different features to support all parties: regulators, companies, citizens and the environment

To briefly resume the main features of this project, we can tell that the service offers the possibility to:

  • browse regulations in a digital format and in an interactive way, including advanced search and regulatory references (internal and external)
  • activate an RSS feed and/or regulatory alerting to automatically receive updates on the regulatory areas of interest
  • access custom regulatory subsets by selecting specific parameters
  • use tools for extracting and mapping customized obligations with respect to the internal structure and organizational processes of single users.

The large-scale dissemination of these features will facilitate the interaction between regulators, law, citizens and organizations, generating a virtuous circle between the regulatory expression and the implementation of the related regulatory obligations. A virtuous circle which, at its best, will also allow to increase mutual trust between all members of society. The adoption of this technology will therefore bring benefits:

  • to regulatory bodies, thanks to greater effectiveness in communicating new regulations
  • to professionals and organizations in the sector, by facilitating consultation and compliance to regulatory updates, as well as access to advanced services for a better understanding of regulatory risks and opportunities
  • to citizens, guaranteeing them greater accessibility to the law, therefore greater awareness of their rights and duties.

A more sustainable finance built on machine readable regulations

Furthermore, the possibility of combining both the regulatory drafting and the consultation in a machine readable format, combined with the use of Artificial Intelligence for its analysis, will also give positive effects on the ESG (Environmental, Social and Governance) macro areas, which are already at the center of the debate in the financial sector. This technological innovations based on machine readable regulations will have beneficial effects:

  • on an environmental level, given that regulatory digitization will allow a considerable saving of paper and the reduction of electricity consumption (reducing processing recycles)
  • at a social level, thanks to the delivery in a shorter time and in a greater number of products and services that comply with the law, thus facilitating the achievement of the public goals pursued by the law itself, such as financial inclusion and consumer protection
  • in terms of governance, as the real-time visualization of the main regulatory trends will allow the elaboration of strategic objectives more quickly in line with the provisions in force.

Finally, the digitization of the ESG regulations in a machine readable format, therefore the possibility of automatically analyzing them through AI, will also make the application of the laws more effective and would support all the banking, financial and insurance actors in achieving their ESG objectives. We will keep you updated on our channels about our journey in the Fintech Milano Hub, but we hope to have expressed the great possibilities that this technology will offer the financial sector and, more generally, the regulatory one.