The integration of large language models (LLMs) like GPT-4 in regulatory technology (RegTech) and payment systems marks a new era in the financial sector. With their advanced language processing capabilities, these models have already generated a lot of
buzz.
They are set to revolutionise how financial institutions manage compliance, risk, customer interactions, and transaction processing. However, when it comes to the transformative potential of LLMs in these domains, there is still a question about how we balance
the promise they hold against the challenges they pose.
Refining Compliance and Risk Management
LLMs can offer highly efficient tools to navigate the ever-growing maze of financial regulations. They can offer interpretation of complex regulatory texts and real-time compliance guidance. This capability extends to monitoring regulatory changes globally,
ensuring financial institutions adapt swiftly to new requirements.
Risk management also can benefit from the use of LLMs. By analysing extensive datasets, including unstructured data like emails or social media posts, LLMs can reveal hidden risk patterns and potential compliance breaches. This proactive approach is vital
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