The AI cloud solution for the bank’s anti-money laundering process

Summary:

The AI cloud solution for banking has automated modeling for the bank’s anti-money laundering (AML) team, resulting in a 22% reduction in false positives and a three points increase in alert escalation to cases.

Client: 

Founded in 1927, Valley Bank is a commercial bank with assets exceeding $61 billion. It operates over 200 consumer branches and commercial banking offices, serving communities throughout the United States.

Problem Statement: 

Valley Bank’s AML team aimed to streamline the process of uncovering money laundering activity within millions of transactions by reducing the amount of manual work required for predictive modeling.

Results: 

• False positives in anti-money laundering investigations decreased by 22%.
• New models were created or re-trained within days instead of weeks.
•  The percentage of alerts escalating to cases increased by three points. 

AI Solution Overview:

The DataRobot AI cloud streamlines the entire AI lifecycle, significantly reducing the number of false positives. Working alongside DataRobot data scientists, Valley Bank developed and validated over 100 models to more accurately identify suspected money laundering transactions. The technology tests and deploys these models with minimal effort required from Valley Bank staff.

References: 

1. 5 AI Case Studies in Banking. https://www.vktr.com/ai-disruption/5-ai-case-studies-in-banking/
2.  Valley Bank Reduces Anti-Money Laundering False Positive Alerts by 22%. https://www.datarobot.com/wp-content/uploads/2022/05/DataRobot-CustomerSuccessStory-Valley_Bank.pdf

Industry: Financial Services

Vendor: DataRobot

Client: Valley Bank

Publication Date: 2022