Saifr, a regulatory technology firm operating under Fidelity Investment’s innovation incubator, Fidelity Labs, is making significant strides in the intersection of artificial intelligence (AI) and regulatory compliance. Co-founder and CEO Vall Herard provided insights into the company's offerings and ambitions in an interview with Pulse 2.0.
Saifr was conceptualised in 2020, with its roots stemming from an impactful compliance conference where Herard posed a question to industry professionals about their interest in using AI for compliance challenges. The immediate affirmation of interest highlighted a pressing need within the sector. However, attendees expressed concerns regarding the lack of sufficient data to effectively train AI models, signalling a gap that Saifr sought to fill using the extensive resources of Fidelity.
“We use cutting-edge AI technology to help our clients tackle complex regulatory and compliance challenges such as marketing content review and adverse media screening and monitoring,” Herard explained. He noted that Saifr aims to streamline processes for marketing, legal, and compliance teams in the financial services sector, significantly saving time, cutting costs, and enhancing accuracy while providing protection against regulatory risks.
Since officially launching in January 2022, Saifr has developed two main products: SaifrReview and SaifrScan. These tools leverage AI to scrutinise marketing content across multiple formats, achieving a detection rate of around 90% for potential risks that human reviewers would identify. SaifrReview offers clients a workflow solution, while SaifrScan is designed as an integration tool that incorporates seamlessly with existing systems.
Additionally, recent developments have seen the introduction of SaifrScreen, an innovative offering focused on Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance. Launched in May, SaifrScreen distinguishes itself by analysing unstructured data from varied sources, unlike traditional tools that rely predominantly on structured data. This capability enables a broader and more nuanced risk assessment, utilising advanced entity recognition techniques.
Herard highlighted the ongoing challenges faced in the fast-evolving AI landscape. “The rapid advancement of AI presents both opportunities and challenges in the financial services industry. Opinions vary widely—some view it as a perfect solution, while others see it as potentially dangerous,” he stated. Saifr's approach involves integrating human oversight throughout its operations, ensuring that while AI boosts efficiency, it does not replace critical human decision-making.
The technology behind Saifr has also evolved, employing a combination of machine learning, deep learning, and generative AI. The incorporation of synthetic data into training has enhanced the efficiency of their models, with custom, fine-tuned large language models (LLMs) driving specific applications.
Significant milestones for Saifr include consistent achievement of internal Annual Recurring Revenue (ARR) targets and the notable acquisition of capabilities from Giant Oak, which has since been rebranded as SaifrScreen. Recognition from the FinTech community, such as placements on FinTech Global’s 2024 AIFinTech100 List and various awards for its AI solutions, has underscored the company’s rapid ascent within regulatory technology.
Saifr differentiates itself from competitors through its sophisticated use of proprietary data, which supports its suite of compliance tools. This unique resource base enables faster market-ready compliant content and an advanced AML/KYC solution that combines multiple layers of AI for more precise risk assessments.
Looking ahead, Herard articulated ambitious goals, including an expansion into additional industries and geographies. Saifr is focused on evolving its technologies to address complex, multi-step financial compliance challenges, moving beyond single-step tasks that are the focus of many current AI applications.
As the firm continues to develop AI solutions aimed at regulatory compliance, it maintains its commitment to harnessing advanced technology while ensuring essential human oversight. This balanced strategy is intended to enhance accuracy, effectiveness, and efficiency in risk management, ultimately supporting clients in navigating the complexities of the evolving regulatory landscape.
Source: Noah Wire Services