Shiboleth Introduction

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Shiboleth is an AI-powered platform that automates consumer lending compliance by auditing customer interactions to detect and mitigate regulatory violations.
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Profile of Shiboleth
Overview
Analytics
Features of Shiboleth & Use Cases
How to use Shiboleth & FAQs

What is Shiboleth

Shiboleth is an automated compliance solution for financial institutions, particularly in the consumer lending sector. Developed by Bivu Dhungana and Esty Scheiner in 2023, Shiboleth leverages artificial intelligence to streamline the complex and often ambiguous regulatory compliance process. The platform is designed to help banks and lending institutions efficiently manage their compliance obligations under regulations imposed by agencies such as the CFPB, FDIC, and OCC, with a current focus on UDAAP (Unfair, Deceptive, or Abusive Acts or Practices) and FDCPA (Fair Debt Collection Practices Act) compliance.

How does Shiboleth work?

Shiboleth uses advanced natural language processing (NLP) and large language models (LLMs) to analyze customer interactions, including calls and communications. The system automatically flags potential compliance violations by comparing the content against a comprehensive database of regulatory requirements, public complaints, and enforcement actions. It can process vast amounts of data quickly, allowing for the auditing of all customer calls rather than just a sample. When a violation is detected, Shiboleth raises appropriate mitigation actions promptly. The platform also employs trend analysis by comparing internal data with public complaint information, enabling institutions to identify and address emerging compliance issues proactively.

Benefits of Shiboleth

By using Shiboleth, financial institutions can significantly reduce the cost and manpower required for compliance auditing, with claims of automating 90% of backoffice compliance workflow at just 10% of the traditional cost. The platform's AI-driven approach allows for comprehensive auditing of customer interactions, far surpassing the capabilities of manual teams in both speed and coverage. This comprehensive analysis helps institutions catch violations that might otherwise go unnoticed, reducing regulatory risk. The system's ability to quickly draft compliance reports and provide rapid response to detected violations enhances overall compliance efficiency. Additionally, Shiboleth's continuous learning from public data sources ensures that the compliance checks remain up-to-date with the latest regulatory focus areas and enforcement trends.