First Electronic Bank (FEB) is an FDIC-insured, state-chartered industrial bank headquartered in Salt Lake City, Utah. FEB partners with dynamic technology and financial services providers to offer credit products across the credit spectrum: from “prime” to “subprime”, from small businesses to individual consumers, from general purpose credit cards to point-of-need installment loans. FEB has contracted Spring Labs to enhance their complaint handling capabilities with the power of Generative AI.

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Chapters

0:00 - Introduction

Armen Meyer welcomes everyone and introduces the panel for the AI Native Compliance Webinar.

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‍1:45 - Speaker Introductions

John Sun from Spring Labs and Derek Higginbotham from First Electronic Bank introduce themselves and share their background.

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‍7:20 - Genesis of ComplianceAssist Product

John and Derek discuss the initial conversation at Money 2020 that led to the development of ComplianceAssist for managing consumer complaints.

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‍13:45 - The Role of Generative AI in Compliance

John explains how generative AI helps analyze unstructured data like consumer complaints to extract useful insights.

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‍18:10 - AI's Impact on Complaint Management and Insights

Derek shares how generative AI has improved the bank’s ability to track patterns and identify potential issues faster.

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‍23:55 - Balancing Human and AI Insights

Discussion on how AI assists in generating insights while still relying on human judgment for final decisions.

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‍30:35 - Challenges in Compliance and Regulatory Conversations

Derek talks about the challenges of communicating with regulators about the use of AI in compliance processes.

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‍38:10 - Practical Uses of Generative AI and Small Language Models

John explains the differences between large and small language models and how they are applied in compliance workflows.

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‍44:00 - Importance of Data Security in AI Compliance Tools

John highlights how Spring Labs ensures data security in AI processes, especially when dealing with sensitive customer data.

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‍49:50 - Audience Q&A - AI Tool Selection Process

John responds to an audience question about how to choose the right AI tool for processing unstructured data in compliance.

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‍55:30 - Regulatory Perspectives and AI's Future Impact

Armen and Derek discuss how AI will shape future regulatory relationships and compliance strategies in the financial sector.

‍1:03:00 - AI as a Partner in Bank-Fintech Relationships

Derek explains how AI strengthens the relationship between banks and fintechs by improving issue identification and resolution.

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‍1:09:10 - Predictions for AI Adoption in Financial Services

The panel discusses where AI is heading next in financial services, including potential innovations in underwriting and customer service.

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1:17:15 - Closing Remarks and Conference PromoJeff Brogger wraps up the webinar and invites participants to a free demo and the upcoming AI Native Banking and FinTech Conference.

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Questions

"With the CFPB complaints example, I don’t understand the way you used genAI to process unstructured data.  What type of data processing did you perform on this? More generally, how do you determine what type of AI tool to analyze/clean unstructured data to gain the insights you want?"

Answer: 19:34

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‍"what does Spring Labs’ AI stack look like for this compliance problem? How are you guys different than any other vendors that are just another chatgpt wrapper?"

Answer: 38:10

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‍"Can you provide some examples of how the use of AI can strengthen and improve the efficiency of the sponsor bank's relationship with fintechs?"

Answer: 51:52

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Outline

Introduction and Housekeeping

Armen Meyer welcomes attendees to the webinar, providing an overview of logistics. Jeff Brogger from Spring Labs shares information about the recording, availability of slides, and introduces the QR code for a free demo and conference ticket.

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Speaker Introductions

John Sun, co-founder and CEO of Spring Labs, and Derek Higginbotham, CEO of First Electronic Bank, introduce themselves and provide an overview of their backgrounds in fintech, compliance, and AI.

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Genesis of the ComplianceAssist Product

The conversation starts with John and Derek recounting their meeting at Money 2020. Derek emphasizes the importance of focusing on complaint management rather than chatbots, which led to the development of the ComplianceAssist product.

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AI’s Role in Complaint Management and Compliance

The discussion explores how generative AI is used to analyze unstructured data, such as consumer complaints, to produce actionable insights, improve regulatory compliance, and enhance decision-making processes.

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Differences Between Traditional AI and Generative AI

John explains the limitations of traditional machine learning models and how generative AI offers new capabilities in semantic understanding and language processing. He also distinguishes Spring Labs from vendors using superficial GPT wrappers.

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Balancing AI and Human Expertise

Derek highlights the importance of using AI to enhance, not replace, human judgment. He discusses the synergy between AI and human agents for more precise and efficient issue resolution.

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Regulatory Challenges in Implementing AI

Derek shares insights into navigating regulatory conversations around AI adoption. He stresses the importance of maintaining transparency with regulators and ensuring AI tools are used as part of supervised processes.

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Security and Data Privacy in AI Solutions

John discusses Spring Labs’ commitment to data security, explaining how they limit the use of large language models for sensitive information and ensure compliance with security certifications like SOC 2.

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AI Strengthening Bank-Fintech Relationships

Derek provides examples of how AI improves the efficiency of sponsor bank and fintech relationships by minimizing false positives and ensuring more accurate issue identification.

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Predictions for AI Adoption in Financial Services

The panel discusses future AI applications, including underwriting, data aggregation, and process automation. They explore how AI will continue to impact compliance and customer interaction management.

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Key Metrics and Early Success Indicators

John shares data on the performance of ComplianceAssist, noting that AI models achieve a 91% accuracy rate, outperforming human agents. Derek confirms that the product has already provided meaningful insights for First Electronic Bank.

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Audience Q&A: Selecting the Right AI Tools

John answers a question about how Spring Labs chooses AI tools, explaining their tailored approach to using large and small language models, machine learning, and clustering techniques.

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The Future of AI in Banking and Compliance

Armen, John, and Derek discuss how AI will evolve to assist with risk management, compliance reporting, and identifying issues in real-time. They predict that AI will also help banks stay ahead of regulatory requirements.

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Conclusion

Jeff Brogger invites participants to book a free demo of Zanko and attend the AI-Native Banking & FinTech Conference in Salt Lake City. He highlights the opportunity to continue discussions with industry leaders at the event.

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