Grasshopper Bank, a federally regulated bank catering to the innovation sector, faced the challenge of maintaining thorough due diligence amidst rapid client growth. To uphold their high compliance standards without compromising growth, they adopted Greenlite’s Diligence AI. This generative AI solution streamlined enhanced due diligence process (EDD) by automating in-depth reviews of business activities, customer documentation, and transaction histories.
The adoption of Diligence AI led to a 70% reduction in the time needed for enhanced due diligence, enabling the bank to scale its client intake without diluting due diligence quality. It bolstered compliance standards, ensuring Grasshopper Bank's adherence to regulatory requirements.
Chris Mastrangelo, Chief Compliance Officer of Grasshopper Bank, highlighted the AI's impact in allowing the compliance team to focus on nuanced risk assessments, significantly enhancing operational efficiency and compliance insight.
Challenge
Grasshopper Bank, a digital-first financial institution dedicated to serving the innovation and business economy, was experiencing rapid growth and an influx of new clients. This growth necessitated a scalable solution for conducting thorough due diligence on business customers, crucial for meeting regulatory requirements and mitigating risks. The challenge was particularly acute as the bank aimed to sustain its growth without sacrificing accuracy or its strong compliance standards.
Solution
To address this challenge, Grasshopper Bank turned to Greenlite’s Diligence AI, a generative AI platform that automates the labor-intensive parts of enhanced due diligence and customer due diligence. These include
- Online research into the business' activities, public profiles and media mentions
- Reviewing customer documentation for accuracy, key insights and notable individuals
- Aggregating data from corporate registries and public databases
- Analysing transaction history to understand financial activity, suspicious counterparties and account balances
Grasshopper Bank was able to customise, deploy and rollout Greenlite within a quarter - helping them meet their immediate business and compliance goals easily.
Greenlite’s pioneering AI-based automation will significantly bolster our capabilities in discerning client risk, offering our team accurate and comprehensive compliance insights. This will allow us to scale more efficiently and better serve our client base, all under the umbrella of top-tier compliance technology.
- Chris Mastrangelo, Chief Compliance Officer at Grasshopper Bank
Results
The implementation of Greenlite's Diligence AI led to remarkable outcomes:
- A 70% reduction in the time required to complete enhanced due diligence
- Increased confidence in scaling client intake without compromising on due diligence quality
- Enhanced compliance standards, ensuring Grasshopper Bank remained at the forefront of regulatory adherence
This partnership creates meaningful efficiencies around enhanced due diligence of our higher risk banking customers. It allows our analysts to focus on making risk informed decisions rather than losing time to manual tasks.
- Chris Mastrangelo, Chief Compliance Officer at Grasshopper Bank
