How a Regional German Bank Transformed Its Regulatory Screening in Just 2 Weeks

Background

A mid-sized German bank operating across several EU jurisdictions faced increasing pressure to stay ahead of regulatory updates, despite having a compact compliance team and limited resources. Their existing manual processes for monitoring updates from BaFin, the EBA, ECB, and other European regulators were time-consuming and prone to delays. They needed a solution that could be deployed quickly, deliver immediate value, and scale with their operational needs.

Challenge

• Limited team capacity  for tracking and analyzing regulatory publications across multiple sources,
  

• Fragmented update flow, resulting in missed or delayed insights and higher non-compliance risks,
  

• No central system  to track and document changes, team members relying on their own out-of-sync excel files and notes. 

Getting started with Kodex AI Screening Agent

The bank selected Kodex AI’s Screening Agent to streamline its regulatory monitoring process focused on German and EU-level compliance.

Seamless Integration

While the bank could use Kodex AI's Screening Agent instantly out-of-the-box, the personalization process was rolled out in just under two weeks. Within that period, the Kodex team fine-tuned the system by expanding the existing regulatory scope with two additional regulators required by the compliance team. The relevance algorithm, responsible for firing regulatory alerts , has also been optimized based on the bank's profile (e.g., product offering, geographical coverage, licenses, etc).

Learning in Real-Time

Kodex AI’s relevance algorithm is purposefully designed to minimize regulatory risk. In practice, this means the relevance algorithm is prioritizing the inclusion of potentially relevant updates rather than risking the exclusion of critical ones. This approach reduces the likelihood of false negatives and ensures that no important publication is ever overlooked.

To further enhance precision, the Screening Agent begins learning from user interaction after just a few days. By observing which updates are marked as relevant or dismissed, the system continuously fine-tunes its output, delivering increasingly accurate, context-aware results tailored to the compliance team’s specific needs.

Results

Immediate Time Savings: 

In the very first week of daily use, the compliance team returned a positive feedback, particularly impressed by the ease of use and convenience of having all regulatory info in a single dashboard.

This early impact was largely driven by centralized access to regulatory content, enriched with high-quality summaries and contextual insights tailored to the bank’s profile. The integrated AI assistant further streamlined daily workflows by enabling the team to ask follow-up questions and receive instant, source-linked answers.

As a result, by the third week, a joint analysis by the bank’s compliance team and the Kodex AI product team revealed that the team has saved an estimated 9 hours weekly on just reading through and analyzing the updates, reducing screening time by approximately 85% compared to the previous manual process. The Screening Agent was surfacing an average of 20 relevant publications per week, filtering away 42% of 'noise', irrelevant for the company profile. This enabled the team to focus immediately on what mattered, without sifting through unnecessary content.

Why It Worked

• Fast Deployment with Zero-Code Setup

Kodex AI is ready to use out of the box. The bank’s compliance team was able to onboard and begin seeing value within days, without needing to involve IT or modify existing infrastructure. The entire setup, including regulator selection and profile alignment, was completed in under two weeks.

• Real-Time Adaptation to User Feedback

The platform’s relevance engine learns continuously. By observing which updates users accept or dismiss, Kodex AI refines its filtering logic in real time. This allowed the system to become increasingly accurate and aligned with the team’s specific compliance needs, without requiring manual rule-setting or retraining.

• Focused Automation Without Requiring Process Overhaul

Rather than replacing existing workflows, Kodex AI integrated seamlessly into them. The Screening Agent automated the most time-consuming parts - monitoring, filtering, and summarizing publications - while preserving the team's control and decision-making processes.

• Built-In Understanding of the German and EU Regulatory Landscape
  

With native support for EU-level regulators (e.g., EBA, ESMA, ECB) and national authorities like BaFin, Kodex AI delivered results that were not only comprehensive but contextually appropriate. Its understanding of jurisdictional nuances ensured high relevance from day one - especially for a bank operating regionally within the EU. Moreover, Kodex's own AI model, KodeXv0.1, is specifically trained on real-world financial data, ensuring unmatched contextual accuracy when dealing with regulatory language.

Conclusion

Before adopting Kodex AI, the bank’s compliance team faced the common challenges of manual tracking, fragmented information sources, and the lack of a centralized, efficient way to monitor regulatory updates. These limitations not only consumed time but introduced risk by making it harder to catch relevant developments early.

With Kodex AI, those challenges were addressed head-on. The Screening Agent consolidated all regulatory publications into a single, accessible dashboard, eliminating fragmented workflows. Manual tracking was replaced with intelligent automation, offering real-time relevance filtering and high-quality summaries tailored to the bank’s profile.

The result: faster screening, reduced workload, and a more confident, proactive approach to compliance. With the platform in place, the bank now monitors a broader set of sources with greater precision and dramatically less effort—proving that small teams can scale their compliance operations without scaling headcount.