Claira’s specialized AI solutions for financial contracts significantly reduces time spent analyzing documents and enables trade and finance professionals to make better decisions faster
Claira LLC the document intelligence fintech, announced the company has received strategic investment from Citi Spread Products Investment Technologies (SPRINT), the strategic investing arm of the bank’s Global Spread Products division.
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The new capital will support Claira’s product development and go-to-market strategy to accelerate digital transformation through the adoption of the company’s AI-powered technology to transform the document analysis process for finance and trading professionals.
“We’re excited about Claira and the new document intelligence solutions the team is bringing to the market. CLO professionals can spend more than 20 minutes analyzing a single structured credit document. Through Claira’s technology, the document analysis process is vastly reduced, cutting to mere minutes the time it takes to extract relevant sections, perform initial analysis, and interpret results to deliver actionable insights on pricing,” said Vitaliy Kozak, Global Co-Head of Secondary CLO, ABS and CDO Trading at Citi.
Citi will collaborate with Claira to reinvent document intelligence and develop next-generation data analysis solutions to support its business, starting with municipal prospectuses and collateralized loan obligations (CLO).
“Claira’s AI-enabled credit document analysis is well-suited for the $4 trillion municipal bond market comprising over 50,000 issuers and more than one million unique securities. Their use of specialized AI and pre-trained models greatly surpasses legacy Natural Language Processing solutions, making Claira a game changer that’s poised to transform our market,” said Patrick Brett, Managing Director, Head of Municipal Debt Capital Markets & Capital Solutions at Citi.
Claira uses proprietary Natural Language Understanding (NLU) technology to unlock critical data insights embedded within financial agreements and delivers the data in a standardized format that’s readily usable for pricing, trading, risk and operational processes. Claira’s solution enables finance professionals to decipher legal contract language faster and more accurately so they can quickly negotiate complex agreements, reduce business risk and identify market opportunities faster.
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“Financial institutions recognize the importance of accurately capturing and evaluating stipulations, terms and conditions and other transaction terms across their business, but most tools currently available are not able to decipher complex financial transactions,” said Eric Chang, Co-Founder of Claira. “Claira was incubated within Exos Financial, and we’re excited to now collaborate with Citi SPRINT to bring next-generation document intelligence and help create massive time efficiencies for their industry-leading Spread Products business.”
Unlike prevalent Natural Language Processing (NLP) approaches based on pattern matching or black-box models that require large amounts of training, Claira’s NLU solution models all the attributes and relationships within and across financial documents as a logic map, utilizing deep semantic parsing at the word and sentence levels. Analytic modules are built on top of the map to extract information and interpret results. With this innovative approach, Claira provides a higher level of interpretation and greater accuracy with minimal labeled training data. This advantage allows the platform to be versatile and deliver a scalable, extendable and transparent solution for various document analysis tasks.
Launched in 2019 as a spin-off from the technology and venture arm of Exos Financial (www.exosfinancial.com), Claira set out to help transform business processes from analog to digital. “Claira solves client pain points not addressed by the current generation of document AI products,” said Joseph Squeri, Exos Co-Founder and CTO/COO and Claira Technical Advisor. “At Exos, we tried over a dozen legal AI products and found none were able to provide the deep insights necessary for our business. All were based on similar NLP models and required significant training to achieve the accuracy we needed. Claira’s unique approach to document understanding technology allows us to capture complex data and insights right out of the box—enabling us significant competitive advantage.”
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