FINANCIAL SPREADING

Spreading one financial document currently takes about 45 minutes of manual work. Besides this huge manual effort, our experience shows that the accuracy of humans is only slightly over 90%, due to the many judgment calls made inconsistently by individual analysts.

Using a complex workflow of Artificial Intelligence technologies we have automated the entire workflow. We have achieved about 70% accuracy to date for totally unknown documents. Shortly, we are going to roll out our new model, retrained with more data and expecting to be nearly as accurate as humans.

THE AUTOMATED SPREADING PROCESS

1

TABLE DETECTION

Interpreting information presented graphically requires use of a Convolutional Neural Network is essential. Valuable information is contained in merged cells and indentation is necessary to reach human levels of accuracy.

2

OPTICAL CHARACTER RECOGNITION (OCR)

After graphical interpretation, we transform images to text using an LSTM model of tesseract, enhanced by domain-specific training data. Tesseract has good accuracy out of the box but by enhancing with a financial library we have increased the accuracy considerably.

3

NATURAL LANGUAGE PROCESSING (NLP) / NATURAL LANGUAGE UNDERSTANDING (NLU)

Understanding the text in the financial statements including the notes, made possible through a proprietary Word Embedding Model and context model, is critical for precision. Using terabytes of data, we have trained a proprietary Word Embedding Model for the financial world. Additionally, we have developed a context model dedicated to financial spreading.

4

MAPPING TO MODEL

All the inputs extracted in previous steps are fed into a deep neural network, which learns with every spread. Through the use of deep learning, we can support custom spreading templates with minimal to no software engineering effort.

A combination of these models, each custom built and trained, deliver unparalleled results. We are continually fine tuning and retraining the models with the goal to beat humans in accuracy latest in Q3 2019. Following our mission to build artificially intelligent machines to process the world's financial data without any human interaction, we have made a first bold step in that direction with our spreading solution.

THE MOODY'S ANALYTICS ADVANTAGE

This artificially intelligent model is packaged in QUIQspread, Moody's Analytics' financial spreading tool that will accelerate your spreading process.

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