Sydney-originated AI learning technology could become a major influencer of global bank culture, compliance and cognitive coaching, following Australian regtech outfit Red Marker’s worldwide integration.
When the professional education firm formally acquired founder Matt Symon’s start-up last month, Kaplan Professional and Red Marker had already been collaborating on the “Artemis” solution for almost three years.
According to Symons, Artemis - which allows financial advisers to create and share compliant digital content - can adapt to identify and rectify risk across financial products and services in development.
The regulatory technology will now provide a globally distributed solution combining real-time risk detection with just-in-time learning.
“Regtech is a terrific opportunity for Australian financial services firms and for Australia as a whole,” Symons told AB+F. “Let’s face it, risk and compliance professionals within financial services firms haven’t historically been overwhelmed by exciting new technology solutions.
"But recent advances in the fields of machine learning and AI are proving that cognitive computing can really help compliance teams in useful ways by, for instance, identifying risk far more effectively than the traditional, laborious manual approaches."
According to Symons, Red Marker has been a “quiet but committed” Australian pioneer in applying artificial cognition to financial services, in a sector where regulation is evolving as quickly as the technology that interprets it.
He added that the application of machine learning and artificial intelligence to the world of regulatory compliance is already allowing banks to algorithmically and proactively identify and pursue risk.
The Artemis machine learning models improve over time and hence the importance of Red Markers partnership with Australian financial services firms (like Westpac and ANZ) to continue to develop the Artemis automated, real-time risk detection system.
Symons, who began the company with wife Mandy Symons and software developer, Julian Broudou, told AB+F that Red Marker’s artificial intelligence would complement current risk mitigation approaches by helping advisers understand risk as they were preparing client emails, Statements of Advice or marketing materials.
“This is an exciting new world for risk and compliance execs who can use technologies like Artemis to free-up time currently spent searching for risks across their firm and allow them to allocate more time to working with the business (e.g. building risk management processes and coaching staff)," he said.
According to Kaplan Professional’s chief executive, Brian Knight, machine learning-based compliance solutions were already vital in Australia’s churning financial services sector.
“This is a game changer,” Knight said of the Artemis solution. “It goes beyond AI and machine learning and combines micro-training to enable advisers to remediate problems as they arise in real time, ultimately leading to a true culture of compliance,” he added.
With Kaplan is looking to roll out Red Marker's Artemis system to a scattering of major global banks, over a million users across 30 countries as well as more than 50,000 workers in Australia's financial services sector.
The deal aims to ensure an Australian-accented artificial intelligence-based regtech will be a major voice in the push to raise and respond to bank compliance globally.