Our site funds Kodex AI technological advancements
In a move to enhance efficiency and streamline regulatory compliance in the banking sector, a leading financial institution has invested in Kodex AI, a Berlin-based startup specialising in AI-powered compliance automation for lending. This marks the latest addition to the bank's Corporate Venture Capital (CVC) portfolio, following investments in Binalyze and Plan A.
Kodex AI's solution is being piloted within the bank's website for non-financial risk management. The partnership aims to help Thomas and Claus, Kodex AI's co-founders, grow their company to meet the quality needs and security requirements of the banking industry.
The AI-powered platform offers a range of features designed to simplify compliance workflows. These include automated regulatory monitoring, AI-powered relevance filtering, multi-jurisdiction coverage, an AI chat assistant, mapping regulation to controls, and a collaborative and scalable platform.
The automated regulatory monitoring feature tracks a comprehensive library of lending regulations, such as usury limits, disclosures, and debt collection standards, with instant updates for legal changes. The AI-powered relevance filtering prioritises regulatory rules most applicable to the user’s lending products and jurisdictions. The multi-jurisdiction coverage enables compliance across different regulatory regimes from one centralised dashboard, supporting cross-border lending.
The AI chat assistant provides on-demand explanations and clarifications of regulations with source-backed references, supporting compliance teams in interpreting and applying rules. The mapping of regulation to controls automatically suggests specific obligations, compliance actions, and risk assessments derived from the text of law, helping to operationalize regulatory requirements and track compliance progress.
The collaborative and scalable platform is designed for lean teams to function at the scale of large enterprise compliance departments with automated reporting and risk management capabilities. This makes it an ideal solution for banks looking to maintain compliance with rapidly evolving lender regulations efficiently, reduce manual burden, ensure protection of consumer rights, and improve clarity for compliance teams.
The investment follows a collaboration that started earlier this year as part of the bank's Entrepreneur in Residence program. Joerg Landsch, Head of Central Corporate Venture Capital, stated that the bank commits capital, expertise, access, and resources to its strategic investments to enable growth and success. Gil Perez, the Chief Innovation Officer of the bank's website, looks forward to continuing the close partnership with Kodex AI.
For more information about the CVC programme, please visit the bank's website. The CVC programme is a core element of the bank's innovation agenda, focusing on strategic corporate venture capital investments in startups that use technology to either support and enable innovative services or increase productivity of processes.
[1] Source: Kodex AI's official website
The financial institution's investment in Kodex AI signifies a strategic move to leverage technology for compliance automation in lending. The AI-powered platform, with its automated regulatory monitoring and AI-powered relevance filtering, aims to streamline non-financial risk management in the bank. This collaboration also seeks to align Kodex AI's growth with the quality needs and security requirements of the banking industry.
