Transforming Compliance in Cross-Border Payments: dLocal’s Journey with AWS Quick Automate
Leveraging AI for Continuous Merchant Compliance and Operational Excellence
Transforming Compliance in Fintech: dLocal’s Journey with AWS Quick Automate
In the rapidly evolving landscape of fintech, maintaining compliance is paramount, especially for cross-border payment solutions. dLocal, Uruguay’s first unicorn, has pioneered this domain since its inception in 2016, connecting over two billion consumers with global technology giants across more than 40 emerging markets. Yet, as dLocal expanded, so did the complexities of compliance—a challenge they are meeting head-on.
The Compliance Challenge
As a major player in cross-border payments, dLocal handles thousands of merchant e-commerce sites. Each month, the company rigorously reviews these sites to ensure alignment with strict compliance standards. This includes verifying that merchants do not sell prohibited goods or services and confirming that their domains are valid and accessible. However, the compliance challenge extends beyond initial onboarding; it necessitates ongoing monitoring to adapt to changes in merchant offerings and practices.
As dLocal grew, the limits of their established compliance processes became evident. While a proprietary generative AI solution accelerated the initial review, the exponential increase in merchant onboarding placed a strain on the system. A significant portion of reviews still required manual assessments, creating bottlenecks that widened as transaction volumes increased.
Introducing Automation with AWS Quick Automate
In 2023, recognizing the need for enhanced automation to streamline the compliance review process, dLocal turned to AWS. By implementing Amazon Quick Automate, they positioned themselves to address the scalability issues effectively. Quick Automate facilitates resilient automations at scale, combining UI automation, API integrations, and orchestration in a comprehensive solution.
This innovative partnership enabled dLocal to automate their merchant compliance website review process significantly, achieving large-scale and efficient policy enforcement. Quick Automate employs generative AI to analyze user inputs, allowing for tailored automation solutions across business systems and user interfaces. It also intelligently engages human operators when necessary, balancing automation with expert oversight.
The Automation Solution in Action
The implementation of Quick Automate involved a strategic collaboration between dLocal and the AWS team to design a solution capable of navigating multiple product pages and evaluating compliance against dLocal’s rigorous policies.
Core Workflow:
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Case Management: Merchant cases are retrieved for evaluation from a processing queue, enabling simultaneous processing and optimization of efficiency.
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UI Agent Evaluation: This specialized agent navigates websites across various languages, assessing compliance with dLocal’s standards and identifying prohibited items.
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Handling Exceptions: Websites that are inaccessible are flagged, and accessible sites are evaluated to determine compliance status. Detailed reasoning is provided for all decisions, with ambiguous cases routed to human reviewers.
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Secure Data Storage: Compliance results are logged and stored securely in Amazon S3, ensuring adherence to regulatory standards.
By enhancing their compliance processes with automation, dLocal reduced the manual review burden and improved efficiency. With Quick Automate, up to 75% of merchant website reviews can now be completed without human intervention, allowing compliance specialists to focus on complex cases where expertise is essential.
Results and Impact
The results of this automation initiative are clear: dLocal has not only improved compliance monitoring but also positioned itself to scale merchant onboarding effectively. As the company continues to expand, the automation rates are expected to rise, enabling rapid adaptation to the growing demands of the fintech landscape.
As Mauricio Clausen, VP of AI at dLocal, noted, “With Amazon Quick Automate, we’ve accelerated the evolution of our AI-assisted solutions, enabling efficient scaling of merchant due diligence for cross-border payments. This partnership has allowed us to streamline the compliance process significantly.”
Conclusion
dLocal’s integration of Quick Automate exemplifies a transformative approach to compliance in fintech. By leveraging AI-powered automation, the company has effectively navigated operational challenges while strengthening its compliance posture. This not only positions dLocal as an industry leader but also offers a scalable model for other organizations facing similar regulatory demands.
As the fintech industry continues to evolve, the lessons learned from dLocal’s journey with AWS highlight the potential of technology to enhance compliance processes, allowing companies to focus on growth while ensuring rigorous standards are maintained.
Learn More
To explore how Quick Automate is revolutionizing operations and enhancing compliance workflows, delve into the resources provided by AWS and dLocal’s ongoing innovations in the fintech realm.