Human-in-the-Loop Compliance Platforms for Financial Product Disclosure Review

  • Authors

    • Abhiram Potharaju Senior Software Engineer, Wells Fargo–Trust & Wealth Technology, USA. Author

    DOI:

    https://doi.org/10.67228/30713315/IJAIDT-2023PI1A53

    Published 06-15-2023

  • Human-In-The-Loop, Compliance Review, Exception Workflow, False-Positive Reduction, Analyst Validation, Disclosure Review, Governance, Auditability

    Issue

    Vol. 6 No. 1 (2023)

    Section

    Articles

    How to Cite

    [1]
    A. Potharaju, “Human-in-the-Loop Compliance Platforms for Financial Product Disclosure Review”, IJAIDT, vol. 6, no. 1, pp. 01–29, Jun. 2023, doi: 10.67228/30713315/IJAIDT-2023PI1A53.

  • Abstract

    With the growth of digital financial services, there are significant friction points in financial product disclosure reviews: manual analyst reviews are slow, expensive and not scalable, while fully automated compliance systems have issues with context, explainability and high false positive rates. To bridge this gap, this paper proposes a Human-in-the-Loop (HITL) compliance platform for the review of financial product disclosures that unites automated intelligence with expert human verification. The proposed architecture, based on Design Science Research (DSR) methodology, governs a comprehensive review life cycle, including automated document ingestion, rule-based screening, AI risk classification, exception workflows, analyst decision controls, and immutable audit logging. The platform greatly reduces analyst workload by offloading the repetitive pattern-matching to machines, reducing false positives with the selective application of complex contextual judgment to human experts, and speeding up review turnaround times. The evaluation results show that this collaborative RegTech framework provides better decision accuracy, audit readiness and governance maturity as compared to purely manual or fully automated alternatives, and serves as a scalable blueprint for modern regulatory compliance.

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