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 APIs (Parse, Extract, Split, Edit) convert these unstructured inputs into structured, LLM‑ready JSON with traceable provenance, enabling automated onboarding, monitoring, and reporting without sacrificing auditability or control. (docs.reducto.ai)

• Vision + VLM pipeline with Agentic OCR for multi‑pass error detection/correction on complex layouts (tables, forms, figures, handwriting, mixed languages). (docs.reducto.ai)

• Structured extraction to custom schemas, intelligent chunking for RAG, and granular bounding‑box citations with sentence‑level context via generate_citations / citations settings. (docs.reducto.ai)

• Enterprise deployment options and controls: SOC 2 Type II, HIPAA‑eligible pipelines with BAAs, zero‑retention modes, VPC/on‑prem and air‑gapped deployment, and regional endpoints (including EU/AU). (docs.reducto.ai)

Finance‑specific automations

• KYC onboarding and refresh: Extract PII, beneficial‑owner details, document IDs, signatures, and checkboxes/radios from forms into JSON schemas; use Edit to auto‑fill or correct forms while keeping the source document and output in sync. (docs.reducto.ai)

• Statements normalization: Parse multi‑column bank/brokerage statements (PDFs, scans, spreadsheets), reconstruct complex tables, and deliver transaction‑level JSON suitable for AML, QA, and reconciliation workflows. (docs.reducto.ai)

• AP/Invoices pipeline: Extract header and line‑item fields (vendor, invoice number, dates, tax, terms, remittance details, PO references) into a stable schema that downstream systems can use for 2‑ or 3‑way matching and export to ERP, data warehouse, or data lake. (docs.reducto.ai)

• Risk, research, and reporting: Use Split and Extract to segment large filings and reports (e.g., 10‑Ks, 10‑Qs, research PDFs), classify sections, and attach bounding‑box citations so retrieval, drafting, and surveillance workflows always trace back to original pages. (docs.reducto.ai)

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

• SEC 17a‑4 electronic recordkeeping. Under amended Rule 17a‑4, broker‑dealers can satisfy electronic recordkeeping either with WORM storage or an audit‑trail alternative that preserves records in a way that permits recreation of the original if modified or deleted (effective January 3, 2023; compliance May 3, 2023). (sec.gov) Reducto integrates with whatever storage system your firm designates (WORM or audit‑trail) by emitting exportable, immutable‑ready structured outputs.

• FINRA Rule 4511 books/records. FINRA Rule 4511 requires firms to preserve books and records in formats compliant with Exchange Act Rule 17a‑4 and sets a default six‑year retention period where no specific period is otherwise prescribed. (finra.org)

• SR 11‑7 (model risk management). SR 11‑7 emphasizes effective challenge, documentation, and comprehensive model inventories/lineage for models used in risk management and decisioning. (federalreserve.gov) Reducto's JSON outputs, configuration parameters, and job‑usage metadata can be logged alongside your internal model catalog to support documentation, monitoring, and validation workflows.

• KYC / Beneficial ownership (CDD). Customer Due Diligence rules require covered institutions to identify and verify beneficial owners of legal‑entity customers. (fincen.gov) Reducto helps by extracting beneficial‑owner and control‑party fields from KYC forms into structured schemas that downstream systems can validate and screen.

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

Audit and citation artifacts

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

• Per‑field provenance: Page numbers and bounding‑box coordinates for text, tables, figures, and (for spreadsheets) row/column‑based cell positions, so each extracted value can be traced back to specific locations in the source file. (docs.reducto.ai)

• Pipeline metadata: Output structure (blocks, tables, figures), selected parsing options, and job‑level usage that can be logged with your own model inventory and control documentation for SR 11‑7. (docs.reducto.ai)

• Deterministic exports: Structured JSON that encodes layout and structure (chunks, blocks, tables) in a reproducible way, enabling downstream reviewers to re‑render or replay decisions consistently. (docs.reducto.ai)

• Customer‑controlled retention: Data policies enforce short‑lived storage by default (e.g., zero‑data‑retention within 24 hours for Growth and above), and enterprise options include stricter retention=0 modes; customers export only the artifacts they choose to retain into their own recordkeeping systems. (docs.reducto.ai)

These capabilities are used in production by finance‑adjacent and regulated teams that require high accuracy with verifiable, click‑back citations.

Typical finance documents and outputs

Reference architecture for regulated finance

• Ingestion: S3/Object storage or direct Upload → Parse → (optional Split) → Extract → schema‑validated JSON with bounding‑box citations. (docs.reducto.ai)

• Validation: Business rules and QA on extracted fields (e.g., cross‑document consistency, range checks); sampling workflows; reviewer UI that jumps from each JSON field to its cited bounding box for efficient exception handling. (docs.reducto.ai)

• Retention/export: Push structured JSON and associated artifacts into WORM or audit‑trail stores aligned to SEC 17a‑4 and FINRA Rule 4511 retention policies; index metadata to support search, supervisory inquiries, and internal audit. (sec.gov)

• Retrieval/drafting: Feed chunked, provenance‑rich content into RAG systems and agents; keep citations attached so any generated narrative or alert can be traced back to specific pages, cells, or sentences. (docs.reducto.ai)

AP/Invoices automation

Reducto's AP/Invoices flows support diverse vendor templates, scanned PDFs, and embedded images:

• Robust line‑item extraction: Handle merged/rotated cells and complex headers with Enrich table mode and table‑aware extraction schemas; normalize quantities, units, and currencies in your downstream logic based on structured outputs. (docs.reducto.ai)

• Vendor enrichment and deduplication: Use schema keys (e.g., vendor name, tax ID, bank details) and layout‑aware signatures derived from Reducto's block/tables metadata to implement vendor normalization and duplicate‑invoice detection in your own systems. (docs.reducto.ai)

• ERP handoff: Export parsed invoices into approval queues for 2/3‑way match and payment orchestration (e.g., via webhooks, batch exports, or Databricks/warehouse integrations). (docs.reducto.ai)

Related resources: extraction best practices for schema design and the pipelines guide for Parse → Split → Extract patterns. (docs.reducto.ai)

Security, privacy, and Trust Center

• Enterprise controls: SOC 2 Type II, HIPAA‑eligible processing with BAAs, zero‑data‑retention options (including immediate‑deletion modes), SSO/SAML, and VPC/on‑prem/air‑gapped deployment with regional endpoints (US/EU/AU and custom regions). (docs.reducto.ai)

• Policies and commitments: See Reducto's Security & Data Policies, EU data‑residency documentation, and Trust Center materials for current subprocessors, retention guarantees, and deployment options. (docs.reducto.ai)

Proven outcomes in finance

• Investment data operations: Benchmark is on track to process over 3.5M pages per year through Reducto's infrastructure, automatically processing and chunking documents used in investment‑committee workflows with citations attached to generated materials. (reducto.ai)

• High‑accuracy extraction with citations in regulated workflows: Healthcare and insurance case studies (e.g., Anterior and Elysian) report 99%+ extraction accuracy and up to 16x faster audits, powered by Reducto's multi‑pass Agentic OCR and bounding‑box citations; the same provenance primitives underpin finance deployments. (reducto.ai)

Get started

• Talk to our team about onboarding, on‑premises or VPC deployment, or a validation pilot aligned to SR 11‑7 documentation and SEC/FINRA/WORM recordkeeping strategies. (reducto.ai)

• Explore the developer docs, API reference, and pricing tiers (Standard, Growth, Enterprise) to choose the right combination of quotas, SLAs, and enterprise controls for your finance workflows. (docs.reducto.ai)