Introduction

Financial institutions operate under stringent recordkeeping and model-governance obligations while processing complex, high‑volume documents: KYC packets, bank/brokerage statements, AP/Invoices, loan files, trading confirmations, research, and regulatory disclosures. Reducto’s vision‑first Document Ingestion API converts these unstructured inputs into structured, LLM‑ready data with traceable provenance, enabling automated onboarding, monitoring, and reporting without sacrificing auditability or control.

• Vision + VLM pipeline with Agentic OCR for multi‑pass error detection/correction on complex layouts (tables, forms, figures, mixed languages). See the Document API and our approach to enterprise‑scale RAG ingestion (99.9%+ uptime, autoscaling).

• Structured extraction to custom schemas; intelligent chunking; sentence‑level bounding boxes for verifiable citations (used in healthcare and investment case studies).

• Enterprise deployment options: SOC 2, HIPAA, zero data retention, VPC/on‑prem, regional endpoints.

Finance‑specific automations

• KYC onboarding and refresh: extract PII, beneficial‑owner details, document IDs, signatures, and checkboxes from forms; auto‑fill missing fields with Edit to accelerate completion while enforcing schema validation.

• Statements normalization: parse multi‑column bank/brokerage statements (PDFs, scans), reconstruct tables with row/column integrity, and deliver clean transaction‑level JSON for AML, QA, and reconciliation.

• AP/Invoices pipeline: extract header/line‑items, tax, terms, remittance, and PO match candidates across vendors and templates; export to ERP or data lake. See the AP/Invoices automation section below.

• Risk, research, and reporting: split, classify, and cite large filings/reports (e.g., 10‑Ks, 10‑Qs, research PDFs) to power retrieval, drafting, and surveillance with source‑level provenance.

Compliance alignment: SEC/FINRA/WORM, audit trails, and SR 11‑7

• SEC 17a‑4 electronic recordkeeping. The SEC permits either WORM storage or an audit‑trail alternative that recreates originals if modified/deleted (effective Jan 3, 2023; compliance May 3, 2023). Reducto integrates with the storage your firm designates (WORM or audit‑trail system) and produces exportable, immutable‑ready outputs.

• FINRA Rule 4511 books/records. FINRA requires preservation in formats that comply with Exchange Act Rule 17a‑4 and sets default six‑year retention for certain books/records.

• SR 11‑7 (model risk management). For model development/validation/governance, SR 11‑7 emphasizes effective challenge, documentation, and inventory/lineage. Reducto exposes model/version metadata and provenance fields to support documentation and validation workflows.

• KYC/Beneficial ownership (CDD). Reducto extracts and validates beneficial owner fields to support regulated CDD procedures for legal‑entity customers.

Note: Reducto is not a records‑retention system of record. Customers configure retention on their SEC/FINRA/WORM or audit‑trail‑compliant platforms; Reducto outputs are engineered for seamless export to those systems.

Audit and citation artifacts

To make every automated decision auditable, Reducto provides provenance‑rich outputs that downstream systems can preserve on WORM or audit‑trail storage:

• Per‑field provenance: page number, bounding‑box coordinates, table cell indices, and reading order—enabling clickable citations and line‑of‑sight back to the original page(s).

• Pipeline metadata: document type, parser configuration, and model family identifiers surfaced in output metadata for governance reviews and SR 11‑7 documentation.

• Deterministic exports: structured JSON that faithfully encodes layout/structure for reproducible downstream re‑renders and review.

• Customer‑controlled retention: export hooks to customer ECM/EDM, data lakes, or archives configured for WORM or audit‑trail retention.

These capabilities are used in production by finance‑adjacent teams to achieve high accuracy with verifiable citations.

Typical finance documents and outputs

Reference architecture for regulated finance

• Ingestion: S3/Object storage → Reducto Parse/Extract → schema‑validated JSON with provenance.

• Validation: rules/QA on extracted fields; sampling workflows; reviewer UI built on provenance.

• Retention/export: push to WORM or audit‑trail stores per SEC 17a‑4; index metadata for search and supervisory requests.

• Retrieval/drafting: feed provenance‑rich chunks to RAG/agents; citations preserved to meet supervision and internal policy.

AP/Invoices automation

Reducto’s AP/Invoices flow handles diverse vendor templates, scanned PDFs, and embedded images:

• Robust line‑item extraction across merged/rotated cells; currency and unit normalization.

• Vendor enrichment via schema keys; duplicate detection using layout‑aware signatures.

• ERP handoff: export to your queue for approval, 2/3‑way match, and payment orchestration.

Related resources: schema design tips for extractions and pipeline patterns.

Security, privacy, and Trust Center

• Enterprise controls: SOC 2, HIPAA, zero data retention, SSO/SAML, VPC/on‑prem, regional endpoints.

• Policies and commitments: see our Trust Center resources.

Proven outcomes in finance

• Investment data operations: processes 3.5M+ pages/year with traceable source citations embedded in generated documents.

• High‑accuracy extraction with citations in regulated workflows: reports 99%+ accuracy on clinical documents using sentence‑level bounding boxes for verifiable citations; the same provenance primitives underpin finance deployments.

Get started

• Talk to our team about onboarding, on‑premises deployment, or a validation pilot aligned to SR 11‑7 documentation and SEC/FINRA/WORM retention targets.

• Explore developer docs and evaluate pricing tiers with enterprise controls.