Learn how financial institutions automate their audit operations with Arkham

Partner

Top Financial Institution managing thousands of credit facilities across LATAM

Challenge

A critical operation for our customer is the routine audit of credit facilities. This historically involved manually verifying loan files (e.g. contracts, invoices, insurance documents) against loan tapes to ensure compliance with credit covenants. This manual process, requiring more than 20 auditors, was costly, time-consuming, and lacked traceability.

Auditing 100 files used to take an auditor ~3 days, creating a growth bottleneck for our customer’s operations.

Solution and impact

In 10 weeks, our customer automated 80% of its audit operation by leveraging Arkham’s unstructured data management, process orchestration, and Generative AI capabilities. With our platform, 100 files can now be audited in 3 hours, effectively increasing the capacity of the audit team threefold.

Deployment process

As illustrated in the figure above, the process of automating an audit operation with Arkham comprises three steps: 1) Integrating the documents to be audited into our data platform and extracting their text with Textract/OCR, 2) Formulating specific prompts for a Large Language Model to identify and extract key fields, and 3) Implementing a distance-based model to perform the auditing process.

Let's delve into the implementation details of each step:

Next steps

Following the successful automation of 80% of their audit operations, our customer is planning to deploy Arkham’s automation capabilities to several other use cases such as compliance monitoring.