REGULATORY COMPLIANCE

PROCESS & DATA
OPTIMIZATION

BUSINESS
TRANSFORMATION

Regulatory Compliance

A significant number of financial institutions lack the foundation required to adapt to forthcoming regulations rapidly and consistently across regional jurisdictions. With Sapiens DECISION, financial institutions will be able to build the full logic governance, accountability and traceability required to address the unprecedented levels of regulatory change and scrutiny that the industry is facing. With every implemented change, the business reason, owner and timing are documented.
Use case: Qualified Mortgage
Produce and identify Qualified Mortgages with confidence and complete transparency
Implement all underwriting guidelines and rules in record time lowering loan origination costs
Customer
National Mortgage Lender
Problem
Needed a manageable process with full visibility to integrate qualified mortgage conditions with existing LOS and compliance rules by a strict deadline.
Solution
Extracted legacy business logic and auto transformed logic enforcing integrity, completeness, accuracy and re-use to drive complete understanding, validation and governance of with loan application data validation, borrower disclosures and pricing.
Results
Lowered the ongoing cost to maintain the rules by 40%, met aggressive compliance implementation deadline.
Use case: Customer Due Diligence
Alleviate regulatory fines by ensuring customer due diligence (CDD) compliance
Easily implement a fully auditable framework for onboarding and remediation
Customer
Top Global Bank
Problem
Needed to capture and implement business rules across the organization for both personal, private, business and corporate banking customers with full visibility and traceability to ensure regulatory compliance and save on multi-million dollar fines.
Solution
Captured business logic that drove consistency, completeness, and automatically executed into existing and new processes. Built a fully featured test suite allowing the business to test and gain confidence in the logic before going live.
Results
Saved 35% on internal resources, enhanced levels of due diligence and monitoring preventing potential multi-million dollar fines, and provided the ability to analyze the account holder’s information accurately and consistently allowing for better internal controls and establish and gaps in data.
Use case: Repayment Planning
Reduce complaints and increase customer satisfaction in dealing with debt conforming with regulations
Provide the account holder with all the available options for debt recovery in a clear and consistent manner
Customer
Top Global Bank
Problem
Client needed to present account holders in financial difficulty with all options available to chose the best course of action for repayment. An inconsistent and inaccurate manual approach caused errors, compensation payouts, complaints and, in the worst cases, regulatory fines.
Solution
Captured client knowledge in a clear and consistent form to allow for the automated determination of available debt treatment plans. This also included a means for capturing the reasons plans were available and all unavailable plans for account holder clarity and regulatory requirements.
Results
35% reduction in complaints, resulting in £1M saved from compensation pay outs in the first year with continued expected savings over time
Use case: Client Onboarding
Implement regulations with 100% compliance
Fulfill Client On Boarding and Know Your Customer regulations with speed, consistency and traceability
Customer
Top 5 Investment Bank
Problem
Client needed to align the interpretation and automate Client Onboarding and Know Your Customer regulations consistently across eight business units, to quickly bring on new clients, eliminate compliance risks and lower escalating costs.
Solution
Quickly created business logic models from regulations with full clarity and alignment across multiple business units. Automated test cases, generated code and executed in Drools, allowing for higher quality and full traceability, as well as reducing operational variances.
Results
Over $10M saved in ongoing operating costs, change management and compliance risks.
Use case: Basel III – LCR
Achieve Basel III compliance with complex requirements, across multiple lines of business
Customer
Top Global Bank
Problem
Meet Basel III compliance implementation schedule under tight budget constraints while addressing global complexity and multiple business and services structures delivering conflicting and ambiguous requirements.
Solution
Created and validated models of regulation logic and conducted challenger scenarios to maximize capital allocation against prevailing business conditions.
Results
Deployed the solution in record time, saved requirement capturing and sign-off time by 40%, reduced User Acceptance Testing (UAT) by 55% and reduced deployment of ongoing operation changes by 55%.
“It only took [us] 17 business days to write, test, and deploy the 100+ rule changes… That is about 90 percent less time than [similar past circumstances].”
Exec Director App Dev, Institutional Retirement Technology – US Retirement Services Company

Process & Data Optimization

Core business processes are often outdated and unwieldy. By placing the business logic that drives operational decisions into an independent Decision Model that is controlled by the business, Sapiens DECISION enables financial institutions to easily re-engineer and optimize these processes. As new processes and business logic are established, Sapiens DECISION automatically generates code that can be used in any execution environment, ensuring consistency between the business policies and their implementation in core systems.
Use case: Lender Investor Eligibility
Maximize percent of loans automatically eligible for sale to investors and eliminate loan repurchases
Implement ongoing investor guideline changes with speed, accuracy and traceability
Customer
Top 5 mortgage bank
Problem
Needed to identify and implement new rules technology for efficient loan classification with full visibility, to reduce repurchase risk, post purchase corrections, and manual workarounds.
Solution
Extracted legacy business logic and auto transformed logic to decision models enforcing integrity, completeness, accuracy and re-use to drive complete understanding, validation and governance of all changes in conjunction with investor and risk management requirements.
Results
20% increase in closed loans eligible for sale to investors, 80% decrease in loan repurchases
Use case: Mortgage Loan Servicing – Loss Mitigation
Improve loss mitigation timelines and eliminate backlog
Automatically align to investor servicing standards to reduce loss
Customer
Top 5 Mortgage Institution
Problem
Lenders servicing standards and policies, CFPB, Freddie Mac, Fannie Mae and now even the Mortgage Bankers Association, have all issued guidelines on how to determine an alternative to foreclosure. Understanding and aligning to these requirements, much less blending them appropriately and fully automating, is a long and arduous undertaking.
Solution
Quickly created collections, workout, and alternatives to foreclosure for all regulations, investor guidelines, and servicer overlays specific to channel, geography, and product.
Results
Improved default resolution timelines by 50% and eliminate backlog entirely, reduced exceptions by 60%.
Use case: Mortgage Loan Origination
Decrease loan production exceptions and errors and improve speed to market
Produce loans across channels with full automation, digital interfaces and processes, testing and auditing capabilities
Customer
National Mortgage Lender
Problem
Needed to originate mortgages at lower costs while maximizing investor sales with higher automation and without repercussion and mitigate all compliance risk.
Solution
Auto transformed and extracted legacy business logic to decision models enforcing integrity, completeness, accuracy and re-use to drive complete understanding, validation and governance with loan application data validation, borrower disclosures and pricing.
Results
Improved speed to market by 60% with a 40% drop in cost of change and eliminate loan quality discrepancies at closing.
Use case: Contribution Limits Monitoring
Modernize retirement services through improved defined contribution plan monitoring
Improve speed of change and processing time with full confidence
Customer
Top 10 Retirement Services Company
Problem
Client needed to lower financial exposure and risks due to applying limits and deferrals incorrectly related to the contribution limits monitoring retirement planning process. Needed a flexible and efficient way to manage change for 402(g), 457(b), 403, 401(k), 417 contribution limits and to eliminate confusion between business and IT for implementation of changes.
Solution
Created rigorous business logic models with enforced integrity, completeness, accuracy, consistency and re-use. Validated and tested the logic models assuring accurate interpretation of regulation and business fit – before deployment to IT with executable Java code. Utilized strong governance of all changes and created a knowledge base to impact, assess and model all new needs.
Results
Reduced 6 hours of processing to 3 minutes with 100% confidence, decreased a 21-day change process to less than 1 hour with 99% less exception resolution resources.
Use case: Mortgage Industry Data Standards
Prevent loan repurchases and increase investor confidence by implementing mandated data standards
Ensure 100% adherence with speed, consistency and traceability
Customer
Top 5 Mortgage Company
Problem
Required to implement newly mandated data standards while at the same time significantly increasing the number of data elements required to verify loan quality and compliance.  Failure of the mortgage company to implement successfully and on time would result in unacceptable costs, compliance and reputation risk.
Solution
Quickly established mortgage purchase and securitization decision-aware processes utilizing new data standards and created executable decision models mapped to the new data model.
Results
Reduced costs by 15% in average technology spend per employee, backed by 40% less time required to implement 66% more scope.
Use case: Bank Deposit Account Management
Reduce costs and time-to-market when revolutionizing core banking operating system
Transform legacy banking platform with speed, consistency and traceability
Customer
Top 5 Global Bank
Problem
Client needed to re-platform their core banking system (deposit account opening, maintenance, closing), supporting 10M+ transactions per day, which required recovering business logic from legacy systems rules with transparency and clarity, after discovery, documentation and validation of the business logic was proving impossible on a tight deadline.
Solution
Quickly established decision-aware account management processes and transformed existing rules to decision models mapped to the processes.  Normalized the models, completed, tested and deployed as Drools code, resolving all gaps and inconsistencies. Established messaging for operations customer support and management oversight.
Results
40% reduction in requirements and analysis effort, 70% reduction in testing errors, and 80% reduction in coding and integration effort. Completed the development of the project 30% faster and on schedule.
Use case: Manual Process Automation
Automate critical decisions in government-related case management activities
Global Business Process Outsourcer (BPO), Serco, improves federal government services
Customer
Serco – A premier provider of public services for governments and private clients in over 30 countries
Problem
Needed to automate manual processes to alleviate gaps coming from different roles and interpretations, and create policy artifacts in a format that other roles could understand with full validation.
Solution
Implemented government policy logic through decision models at different decision points throughout the manual processes, helping Serco to build a fully automated set of web-based applications.
Results
Serco was able to provide effective public services on behalf of government agencies using their policies, with full transparency and consistency to the way they are implemented. Serco delivered applications faster and more efficiently, and can change those applications quickly to meet regulatory or operational demand..
Use case: Card Dispute Management
Reduce costs and time-to-market when revolutionizing core banking operating system
Transform legacy banking platform with speed, consistency and traceability
Customer
Top Global Bank
Problem
Client needed a solution that enabled them to quickly adapt to changing fraud profiles and regulatory demands to process card disputes and decide if a disputed charge needed to be considered for a chargeback. With a focus on customer satisfaction, the bank needed full automation in order for their fraud experts to analyze and manage fraud profiles and implement updates to the operational platforms.
Solution
Extracted fraud profile and handling knowledge business logic from the operators into decision models validating the ratio of different outcomes, identifying cases that didn’t perform as expected, and providing business clarity of the operation. The decision models enabled accurate and complete understanding of the decisions being made, determined impact and correctness of change prior to implementation, and provided quick deployment to all operational platforms.
Results
Increased adoption of new fraud profiles by 4x, saved 70% of time and resources due to fully automated processes.
“By externalizing and managing the key decision logic using Sapiens DECISION, Serco can deliver applications faster and more efficiently, and change those applications quickly to meet regulatory or operational demand.”
Jason Adolf, Director, Business Process Management – Serco

Business Transformation

Change management can be frustrating, especially when irregularities are discovered towards the end of the process. Business change execution is transformed into a manageable, fully-governed, business-oriented process by Sapiens DECISION. Our technology platform enables financial institutions to consolidate business logic; separate it from operational processes and applications; and maintain it in a single, cross-organizational repository. Sapiens DECISION empowers the change management function to validate and test changes at the design stage, providing clear and unambiguous input into the technical development function via automatically generated test cases.
Use case: Microservices
Reduce coding and proof of compliance efforts by deploying microservices
Enable DevOps collaboration between development, operations and testing to reduce cost and assure conformity
Customer
Top 5 Global Bank
Problem
Need to assure compliance with Telephone Consumer protection Act (TCPA) across all consumer facing applications within the bank to prevent violations by bank employees and have appropriate audit trail to prove conformity.
Solution
Externalized business logic and generated code for a microservices called by customer facing applications as part of a service- oriented architecture (SOA) re-engineering project. Established central audit trail to prove compliance. Tested integrity and completeness of business logic prior to generating code. Eliminated the need to rewrite code in all of the customer facing applications separately to increase productivity.
Results
Reduced coding and maintenance efforts by more than 90%, produced fully transparent audit trail of compliance efforts.
“If I could say anything to a company thinking about using Sapiens DECISION – It’s the absolute best investment you can make to position yourself and your company and your client.”
Monique Ewing, Manager, Business Rules – Serco