© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - IBM Announces Planned Acquisition of Promontory to Transform Regulatory Compliance with Watson
Posted 30th September 2016

IBM Announces Planned Acquisition of Promontory to Transform Regulatory Compliance with Watson

IBM today announced plans to acquire Promontory Financial Group, a global market-leading risk management and regulatory compliance consulting firm.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

IBM Announces Planned Acquisition of Promontory to Transform Regulatory Compliance with Watson
Image

IBM today announced plans to acquire Promontory Financial Group, a global market-leading risk management and regulatory compliance consulting firm.  Upon close, the capabilities of Promontory combined with IBM’s deep industry expertise and Watson’s cognitive capabilities will directly address the massive operational effort and manual cost of escalating regulation and risk management requirements.

Promontory’s 600 professionals are based in North America, Europe, the Middle East and Asia Pacific – many of them have deep and varied expertise amassed over decades as senior leaders of regulatory bodies, financial institutions and Fortune 100 corporations.  Promontory is widely regarded as the firm financial institutions turned to for guidance coming out of the 2008 financial crisis. The firm’s expertise and offerings directly address the standards for compliance implemented to ensure the integrity of the financial system, protect consumers and build trust through transparency.

More than 20,000 new regulatory requirements were created last year alone, and the complete catalog of regulations is projected to exceed 300 million pages by 20201, rapidly outstripping the capacity of humans to keep up. Today, the cost of managing the regulatory environment represents more than 10 percent of all operational spending of major banks, for a total of$270 billion per year2.

This is a workload ideally suited for Watson’s cognitive capabilities intended to allow financial institutions to absorb the regulatory changes, understand their obligations, and close gaps in systems and practices to address compliance requirements more quickly and efficiently.

Upon close, Promontory’s professionals will train Watson, which will learn by continuously ingesting regulatory information as it is created and through interaction in real-world applications.

“What Watson is doing to transform oncology by working with the world’s leading oncologists, we will now do for regulation, risk and compliance,” said Bridget van Kralingen, senior vice president, IBM Industry Platforms. “Promontory’s experts are unsurpassed in this field. They will teach Watson and Watson, in turn, will extend and enhance their expertise. This initial offering of Watson Financial Services is emblematic of the transformative cloud-based solutions that IBM Industry Platforms will bring to clients.”

Promontory will begin to accelerate IBM’s development and machine training of cognitive solutions for risk and compliance. This includes solutions for tracking constantly changing regulatory obligations, expectations and control requirements, as well as solutions that address specific compliance needs, such as financial risk modeling, surveillance, anti-money laundering (AML) and Know Your Customer (KYC). In addition, Promontory professionals will extend IBM’s consulting and services offerings to help clients dramatically reduce the cost of regulatory compliance.

“We believe the future of business and regulation will be driven by the need for advanced technology alongside deep subject-matter expertise,” said Eugene Ludwig, Promontory’s founder and CEO. “Combining Promontory’s expertise with IBM’s extraordinary technological capabilities such as Watson will permit us to directly address our clients’ greatest challenges in innovative and powerful ways. It will enhance our mutual commitment to risk management and regulatory compliance excellence, and our results will benefit customers and the overall financial system.”

Promontory will operate as a wholly owned subsidiary of IBM.  The planned acquisition represents the first example of new capability from IBM’s Industry Platforms business, launched in August. The new business was formed to build open vertical platforms – the first comprehensive “as a service” offerings designed from the ground up for individual industries. These platforms will integrate IBM Cloud, Watson and capabilities from across digital ecosystems of specialized providers, and serve multiple clients in an industry – delivering dramatically reduced costs for outcomes spanning speed, quality, audit-ability, security and transparency.

Promontory is headquartered in Washington, D.C. and has 19 offices in North America, Europe, Asia, Australia, and the Middle East. The planned acquisition is expected to close in late 2016 and is subject to applicable regulatory review and customary closing conditions. Financial details were not disclosed.

Categories: M&A


You Might Also Like
Read Full PostRead - Eye Icon
What to Do if You Can’t Make Your Business Loan
News
02/12/2021What to Do if You Can’t Make Your Business Loan

What To Do If You Can’t Make Your Business Loan There are a lot of moving parts to make a loan from your business. You have to meet all of these requirements and you need to do it fast. But not every company manages to obtain a business loan, even if the

Read Full PostRead - Eye Icon
Enhanced Contact Center Integration: The Fuel for Stellar Customer Experience
Corporate Social Responsibility
07/06/2023Enhanced Contact Center Integration: The Fuel for Stellar Customer Experience

In the digital era, contact centers are more than just call hubs. They have transformed into multi-channel, multi-tool powerhouses, serving as the core of a company's customer engagement strategy. The success of such a strategy depends largely on how effective

Read Full PostRead - Eye Icon
Japan Post Acquisition of Toll Holdings
M&A
Read Full PostRead - Eye Icon
Seven Ways Geo-Economics Is Changing the Global Economy
Finance
27/02/2015Seven Ways Geo-Economics Is Changing the Global Economy

Report from the World Economic Forum's Global Agenda Council on Geo-economics identifies seven geo-economic trends that could decelerate or even reverse globalization.

Read Full PostRead - Eye Icon
Hungary: A Soaring Economy, Beating the Odds
Legal
03/03/2016Hungary: A Soaring Economy, Beating the Odds

Barkassy Grünfeld is a “new-wave law firm” which breaks the traditional approach of counselling and introduces new progressive concepts in pricing and legal services.

Read Full PostRead - Eye Icon
How To Protect Your Business from Modern Threats
Innovation
25/11/2022How To Protect Your Business from Modern Threats

The dangers facing businesses are ever evolving and becoming more and more deadly as times goes on. As many blessings has technology has brought, it has brought with it an element of malice for those intending to use it for the wrong purpose.

Read Full PostRead - Eye Icon
Winners’ Directory
Finance
01/11/2016Winners’ Directory

Winners’ Directory

Read Full PostRead - Eye Icon
The Future of Cyber Security Law
Legal
26/10/2021The Future of Cyber Security Law

Here we take a deeper look into the e-commerce and IT industries, what Cabinet de Maître Anne-Katel Martineau does, and how the award-winning firm is stays up to date in an ever-fluctuating industry.

Read Full PostRead - Eye Icon
Thornton’s Takeover: Ferrero Buys Majority
Finance
23/06/2015Thornton’s Takeover: Ferrero Buys Majority

Ferrero International have successfully completed a takeover bid for the UK-based confectionery store chain.



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow