Hybrid intelligence is the future of compliance operations

Hybrid intelligence is the future of compliance operations

Posted by: Donald Gillies

At PassFort, we share a powerful vision to enable businesses & individuals to establish trust online. We provide tools to regulated businesses to enable them to automate and digitalise their compliance processes - across onboarding, verification and management of their customer relationships. (You can read more here).

But we’re different to our competitors.

Early on, we recognised that humans possess an awful lot of tacit knowledge that's hard to capture and automate. In the words of one of our investors, Matt Clifford, startups and business models need to 'aim to co-opt and empower, rather than simply replace, workers'.

Over the past three years of working with companies building digital compliance processes, one technology alone has proven highly correlated with best-in-class results; hybrid intelligence. We use this term to describe software that can interchange with, augment the actions of and learn from the specialists that use it.

The role of People in complex decision making

We have spent thousands of hours with the compliance professionals, developers and product managers responsible for building and operationalising compliance policies for the digital economy.

People in these roles are often obsessed by the latest marketing terms such as machine learning, artificial intelligence and automation (In a society trying to understand the role of robots in the future of work, it’s hard not to). When technology offers improved results for lower costs who doesn’t get curious?

But human intelligence, not artificial intelligence, is still superior in complex and subjective decision-making processes. People, such as compliance professionals, are fantastically self-aware and experienced in ways software cannot yet be.

This matters to companies.

It means they need to rethink their compliance strategy regarding technology and its role in skilled work. How do I augment my most skilled people rather than replace them?

Treading this path is an intuitive no-brainer for many CEOs. Yet many companies do not equip their people properly and projects to automate compliance work waste vast amounts of resource - leaving existing employees frustrated, with less budget and sceptical of salespeople.

Why Should Companies Adopt Hybrid Intelligence?

Previous attempts to streamline compliance processes have amounted to API integrations with specialised data sources or automated workflow engines. These technologies are not effective solutions when dealing with real-world complexity.

For example - if data is not available or there’s an unforeseen scenario these solutions will fail. There’s also no integrated tools for software to learn from the resulting behaviour of the compliance professionals.

At PassFort, we believe in combining the best of human and artificial intelligence using hybrid intelligence. Hybrid Intelligence combines data sources unique to the compliance industry, manual decision-making data generated by human compliance teams & software to solve strategically important compliance problems.

Our platform solves problems no other technology can solve

PassFort’s Smart Policy technology enables companies to utilise Hybrid Intelligence tailored for compliance operations. Our Smart Policies act as a human-software hybrid system to build & operationalise existing compliance policies. We use task-specific building blocks to form Smart Policies, inspired by the hundreds of policy documents we have read over the years.

Smart Policies empower companies to solve three problems that no other technology can solve:

1. Compliance Policies Are Human Readable Only

Today, compliance policies are optimised to be read by lawyers. They contain ideas more complex than “If A, then do B…” regarding how employees should behave in any given scenario.

Compliance policies are therefore very difficult to operationalise.

Workflow engines don’t solve this problem. We know. We built one.

For example, a workflow engine might allow you to call out to multiple data providers to pull in beneficial ownership data for a corporate client. But what if the data needed is not available? Perhaps the entity is a trust or is incorporated as a Delaware Corp.?

For a compliance professional with human intelligence the next steps can be obvious; such as collecting a shareholders agreement or building an organisation chart...

Today teams not using Smart Policies do not have the tools to collect such information from customers and structure the resulting data in a way that software can understand.

With Smart Policies we aim to provide those task specific tools and structure the resulting data to teach software based on human actions all the while increasing the degree of automation.

2. Inconsistent & Opaque Decision-making Outcomes

Due to compliance policies being difficult to operationalise, compliance professionals today can reach very different decisions given the same policy, training, tools and data.

The reason is simple; if the tools teams have at their disposal are not sufficient to action a case end to end, then there's no way for compliance leaders to enforce policy compliance. People will develop their own nuances, preferences and discriminatory practices - its the downside of human intelligence.

Following on the example above, if that shareholders agreement is collected as a PDF email attachment or that organisation chart is built out in Microsoft Office Powerpoint then you have a problem. How do you ensure that quality standards are met; that documentation is secure & consistent?

Here again is an opportunity for Hybrid Intelligence to reign supreme.

Smart Policies solve such problems by structuring all manual actions teams may need to take in order to complete specific tasks. For beneficial ownership you could email customers from directly within PassFort (or via our API) to collect documentation via a secure link. Or perhaps your team might prefer to build out that organisation chart within PassFort - nice and structured for all future team members to update or search with credit for their work in the audit trail.

3. No Global Compliance Data Model

This is one of the biggest issues blocking a brighter compliance future.

Compliance data today is localised (across both clients & vendors), unstructured, non-digital & therefore expensive to access & audit.

The average compliance professional also has no hope of being an expert in all of the technologies and types of data coming to market.

Developers have grown sceptical of the need for yet another compliance data integration.

But it needn’t be this way. Hybrid Intelligence offers a better model. Our Smart Policy technology embraces such complexity - mapping disparate sources to one global data structure unifying third-party and human generated data.

One integration, one source of truth, one marketplace to access a global ecosystem of individual & corporate compliance data.

Compliance Professional, Product Manager or Engineer at a Regulated Business?

If you believe that your organisation could benefit from improved compliance operations, get in touch to arrange a demo here. We are rapidly expanding the number of customers participating in our monthly customer feedback programme. Tell our team of industry leading product managers, designers & engineers how they can make your life easier - week in week out we’re solving your problems by releasing new features.

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