Transforming Compliance Workflows: The Diligent Way

How Did Diligent Come to Be?

Diligent was founded in 2023 in Berlin, Germany, by Edoardo Maschio and Ahmed Gaber. The company, which consists of a small but mighty team of two, is backed by Group Partner Jared Friedman. The founders, both seasoned professionals with extensive backgrounds in fintech, identified a glaring issue in the industry: the manual, labor-intensive processes associated with fraud detection and Anti-Money Laundering (AML) compliance. This problem inspired them to create a solution that would automate and enhance these crucial tasks using Generative AI (GenAI).

What Problem Is Diligent Addressing?

The fintech and banking industries face significant challenges in managing fraud and AML compliance. Despite advancements in technology, much of the work still relies on human analysts who perform repetitive tasks. These tasks, which include verifying the legitimacy of businesses, reviewing customer documents, and managing false positive alerts from AML systems, are not only time-consuming but also prone to errors. This manual workload diverts valuable human resources away from more critical investigations that require expertise and judgment.

How Does Diligent's Solution Work?

Diligent’s GenAI assistants are designed to automate routine customer due diligence tasks, thereby reducing costs, improving risk detection, and freeing up human capacity for more complex investigations. The AI assistants adhere to predefined workflow policies, integrate seamlessly with existing systems, and generate risk intelligence reports with clear audit trails.

Diligent offers three main AI assistant archetypes:

1. Risk Assistant: This assistant conducts comprehensive investigations into the risk and nature of a customer’s business. It verifies legal information, evaluates the company’s activities, examines the website and address for any signs of fraud, and assesses the online reputation through social media and reviews.
2. Screening Assistant: This assistant automates the process of managing alerts from screening systems, significantly reducing the time spent on remediating false positives related to sanctions, Politically Exposed Persons (PEP), and adverse media.
3. KYB Assistant: This assistant verifies business information and instantly validates customer-uploaded documents, such as registry extracts, proofs of address, and bank statements, according to custom acceptance policies. This automation eliminates back-office verification work and reduces customer friction during onboarding.

Who Are the Minds Behind Diligent?

Diligent was co-founded by Edoardo Maschio and Ahmed Gaber, both of whom bring a wealth of experience in fintech and technology.

• Edoardo Maschio: Before founding Diligent, Edoardo was an investment associate and chief of staff at Rocket Internet’s early-stage investment team. He played a crucial role in incubating and investing in multiple ventures with the fintech team. Edoardo also has experience as a junior associate at the Boston Consulting Group.
• Ahmed Gaber: Ahmed, the co-founder and CTO of Diligent, has over a decade of experience in the fintech industry. Prior to Diligent, he was the VP of engineering at Billie, Europe’s largest B2B Buy Now Pay Later (BNPL) provider, where he led multiple engineering teams across various domains, including business identification, fraud, credit, and AML risk. Ahmed also has experience as a technical PM and software engineer at Funding Circle.

What Impact Does Diligent Aim to Have on the Industry?

Diligent’s mission is to transform the way fintech and banking institutions handle risk and compliance operations. By automating routine tasks, Diligent aims to significantly reduce the cost-to-comply, enhance the accuracy and efficiency of risk detection, and allow human experts to focus on more critical, value-added activities. The ultimate goal is to create a more secure and efficient financial ecosystem where compliance does not come at the expense of innovation and growth.

How Do Fintechs and Banks Benefit from Diligent?

Fintech companies and banks face immense pressure to comply with regulatory requirements while managing operational costs. Diligent provides these institutions with AI-driven solutions that streamline compliance processes, improve risk management, and enhance operational efficiency. By adopting Diligent’s AI assistants, fintechs and banks can:

• Reduce Operational Costs: Automating routine tasks cuts down on the labor costs associated with manual compliance work.
• Improve Risk Detection: AI-driven analysis enhances the accuracy and speed of risk detection, reducing the likelihood of fraud and compliance breaches.
• Free Up Human Resources: By taking over repetitive tasks, Diligent allows human analysts to focus on more complex and strategic investigations.
• Enhance Customer Experience: Faster and more accurate compliance processes reduce friction for customers during onboarding and other interactions.

What Challenges Does Diligent Address in Manual Compliance Work?

Manual compliance work in fintech and banking is fraught with challenges. Human analysts are often bogged down by repetitive tasks such as verifying business legitimacy, reviewing documents, and managing false positives. These tasks are not only time-consuming but also susceptible to errors and inconsistencies. Furthermore, the reliance on manual processes limits the capacity for in-depth investigations and timely responses to potential risks. Diligent addresses these challenges by automating routine tasks, ensuring consistency and accuracy, and enabling faster and more effective compliance operations.

What Are the Key Features of Diligent’s AI Assistants?

Diligent’s AI assistants come equipped with several key features that make them invaluable to fintech and banking institutions:

• Automation of Routine Tasks: Diligent’s AI assistants automate the verification of business legitimacy, document review, and management of false positives, significantly reducing the workload on human analysts.
• Integration with Existing Systems: The AI assistants are designed to integrate seamlessly with existing compliance and risk management systems, ensuring a smooth transition and minimal disruption.
• Customizable Workflow Policies: Diligent’s AI assistants can be tailored to follow specific workflow policies, ensuring that they meet the unique requirements of each institution.
• Comprehensive Risk Analysis: The AI assistants conduct holistic risk assessments, taking into account various factors such as legal information, business activities, online presence, and reputation.
• Real-Time Alerts and Reporting: Diligent provides real-time alerts and detailed reports, allowing institutions to respond swiftly to potential risks and maintain a clear audit trail.

What Is the Future Vision for Diligent?

Looking ahead, Diligent aims to continue innovating and expanding its suite of AI-driven solutions to address the evolving needs of the fintech and banking industries. The founders envision a future where compliance and risk management are seamlessly integrated into the operational fabric of financial institutions, enabling them to operate more securely, efficiently, and profitably. By leveraging the power of Generative AI, Diligent is poised to lead the way in transforming compliance operations and setting new standards for risk management in the digital age.