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Check interest rate change clauses in savings contracts with artificial intelligence

“Interest rate change clauses which grant the credit institution an unlimited power to change the interest rate in the case of long-term savings contracts are invalid.”

– Judgment from the German Federal Court of Justice of 17 February 2004 – XI ZR 140/03

The artificial intelligence semantha supports German banks in checking existing savings contracts for invalid interest rate change clauses in order to be able to calculate and form appropriate provisions.

Legal clarity made simple

With Germany’s Federal Court of Justice’s ruling on premium savings contracts, banks and customers gained legal certainty, but banks are now faced with an enormous additional workload. Heidelberger Volksbank would have had to check a large amount of contracts manually and within a very short period of time to avoid lawsuits.

The ruling described here and the associated case law currently only apply in Germany.

semantha helps precisely determine necessary provisions and thus realistically present the risk in the balance sheet. All this in a fraction of the time.

Determine provisions more precisely

Banks must set aside sufficient provisions to reflect the receivables risk in the balance sheet. Are your provisions sufficient or even too high?

Save time

So far contracts have to be checked manually, which involves enormous amounts of time and high costs.

“The previous time-consuming review of our contracts and their documentation required 20 working days. The AI-based solution completed the same work in 2 hours. This resulted in a 98.75% reduction in the resources required for this – sensational!”

Christian Murr, Divisional Manager of the Management Board of Heidelberger Volksbank

We can help here, too:

Legal and Compliance Checks

Regulations on banking contracts and guidelines are subject to change. Use semantha to identify all affected contracts and speed up your processes.

Optimize Retail Banking

The increasing number of work instructions leads to a situation in which bank advisors find important content only with great effort, as many instructions are not sufficiently structured. Finding topics in unstructured texts therefore offers the necessary added value to find & comply with the relevant specifications.

Corporate Intelligence

Comprehensive information analysis is becoming increasingly important to reduce risks and improve investment management.

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