Automating document processing for regulatory reporting and compliance
Goldman Sachs is one of the world’s foremost investment banks that provides a wide range of financial services to a diversified client base. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial hubs around the world.
Company Overview
The Goldman Sachs Group, Inc is a market-leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial hubs around the world. Goldman is considered a systemically important financial institution by the Financial Stability Board, meaning that its regulatory reporting and compliance are of the highest importance to the global financial system.
Challenge
In 2015, as part of the Dodd-Frank Act, the US Treasury mandated that US financial institutions maintain detailed records about their qualified financial contracts (QFCs). The rules also required firms to be capable of providing this information to the relevant primary financial regulatory agency within 24 hours of receiving a request from the agency.
To meet these new requirements, Goldman Sachs wanted a solution that enabled them to efficiently analyze their QFC portfolio of 50+ agreement types on an ongoing basis. The scope included compiling the relevant information from their entire back book of several hundred thousand documents plus the straight-through processing of their flow book.
Additionally, Goldman Sach’s legal team wanted to extract information from their QFCs for other reporting and due diligence purposes such as SR 14-1 and BRRD and automatically upload the data into their separate document and data lakes.
Solution
The team at Goldman Sachs selected Eigen as their AI provider for QFCs after reviewing 8-10 different technology solutions. Eigen outperformed the alternative solutions in benchmarking exercises that measured the levels of automation, precision and speed achieved as well as the subject matter expertise and professionalism of the provider’s team. It was also clear that the flexible nature of the platform would enable Goldman Sach’s legal team to use it for other document and data needs, including BRRD adherence and LIBOR transition.
With the flexibility, speed and accuracy of the Eigen platform, the combined Eigen and Goldman Sach’s team was able to move quickly and meet the QFC deadline.
- During the onboarding process, Eigen quickly trained the Goldman Sach’s Documentation Group to use the platform. This enabled the bank to have full control over building its models, maintaining them and managing the process end-to-end.
- The Eigen team developed APIs that connected it to upstream document repositories and downstream data lakes and systems.
- The Eigen team has provided ongoing support throughout the implementation phase and on into production with new features, performance fixes and internal workflow tools to ensure the team at Goldman Sachs derives the maximum benefit.
“From the outset, we were impressed by the capabilities of the Eigen platform and its ability to rapidly and accurately extract and compile the data we needed for QFC reporting. We’ve also come to appreciate the professionalism, dedication and expertise of the Eigen team.
Thanks to the flexibility of the platform, we are now able to use it for the document analysis steps of our LIBOR transition effort, accelerating the project timescales drastically. We’re exceptionally pleased by the service we’re getting from Eigen.”
Impact
Using Eigen, Goldman Sachs has successfully met its goals to automate document processing for QFC recordkeeping purposes while maintaining high accuracy levels and achieving downstream efficiencies.
- Scale and flexibility: Eigen provided Goldman Sachs with the ability to scale and extract further data points from their QFC documents that were needed for Brexit, BRRD adherence, US Stay Rule compliance etc.
- AI capability: with the LIBOR cessation deadline looming, Eigen was able to subsequently support Goldman Sachs with the analysis of their documents for the transition. Eigen worked with Goldman Sachs alongside their consulting and legal staffing firms to deliver their LIBOR transition project.
- Deep partnership: subsequent to becoming a customer, Goldman Sachs became an investor in Eigen in 2018 leading its Series A funding round alongside Temasek and participated in Eigen’s Series B funding round in 2019-20
Additional Resources
eBook: A User’s Guide to Intelligent Document Processing Technology
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