Reykjavik, Iceland – October 15, 2024 – Lucinity received a second US patent for its federated learning technology, enabling secure sharing of algorithmic insights across global financial systems without sharing sensitive data. This innovation enhances financial crime prevention and has potential applications in sectors like healthcare.

Lucinity, the global leader in AI software for financial crime compliance, has secured a second patent from the US for its proprietary federated learning technology, which provides a unique approach to allow global financial systems to share algorithmic learning patterns without having to share sensitive data.

Intelligence can be securely shared across multiple entities, improving collaboration. This helps enhance AI models for boosting productivity and detecting cross-border financial crimes, while also enabling proactive measures to prevent illegal activities.

This methodology aligns with the latest global regulations, including the EU AI Act and onshoring requirements in countries like Singapore and Australia.

The design of the patented technology was born out of Lucinity’s research and development division, Lucinity Labs, which had been looking for a way to strengthen the financial services ecosystem while complying with data sharing laws.

This innovation was applied during a project with the Bank for International Settlements (BIS) Innovation Hub’s Nordic Centre that explored privacy-enhancing technologies and enhanced cooperation across institutions and borders.

“We believe in bringing connectivity to parts of the world where it wasn’t possible before. The biggest thing holding back adoption of advanced AI systems is the global concern over data security. Now, with our patented technology, algorithms from one market can share essential learnings with another market, and the data remains safe, private, and secure,” says Guðmundur Kristjánsson, CEO and Founder of Lucinity.

This federated learning patent, combined with Lucinity’s Generative AI technology, will unlock unprecedented intelligence in financial services, enabling more precise, efficient, and secure data analysis for combating financial crime.

As well as breaking down barriers in financial crime prevention, there is huge potential for federated learning to be applied in other sectors that handle sensitive data such as healthcare, DNA research, and pharmaceutical practices.

“The possibilities to apply this federated learning patent are endless. It will exponentially increase our capacity to utilize and learn from data like never before,” says Kristjánsson.

Lucinity has been at the forefront of AI technology since its inception. The company also received a patent in 2022 for another piece of AI, their Secure Lockbox, which features pioneering homomorphic encryption of data. This patent enables Lucinity to encrypt all personally identifiable information (PII) while still using PII as an input into AI in its encrypted form. This was a huge leap towards shared intelligence, and the proprietary federated learning patent complements and builds on this.

With these advancements in federated learning and data security, Lucinity continues to introduce new disruptive innovations to enhance financial crime compliance and global intelligence sharing.

Learn more about Lucinity’s Patent:

US12045716B2 – Federated learning system and method for detecting financial crime behavior across participating entities – Google Patents

A method of updating a first neural network is disclosed. The method includes providing a computer system with a computer-readable memory that stores specific computer-executable instructions for the first neural network and a second neural network separate from the first neural network. The method also includes providing one or more processors in communication with the computer-readable memory. The one or more processors are programmed by the computer-executable instructions to at least process a first data with the first neural network, process a second data with the second neural network, update a weight in a node of the second neural network by a delta amount as a function of the processing of the second data with the second neural network, and update a weight in a node of the first neural network as a function of the delta amount. A computer system for updating a first neural network is also disclosed. Other features of the preferred embodiments are also disclosed.

Google Patents

Fuster et al.

About Lucinity

Lucinity is an AI software company for financial crime operations, designed to accelerate compliance teams with actionable intelligence. Lucinity enhances intelligence gathering, analysis, and decision-making, allowing institutions to streamline operations and reduce costs. As an open, configurable, no-code platform, Lucinity offers a seamless integration of data, automated workflows, and a modern user interface, making it a crucial tool for enhancing productivity and operational efficiency in the financial sector.

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