Model Validation
Credit risk & BSA/AML models validated under SR 11-7
BSA/AML Compliance
Transaction monitoring validation & sanctions screening
Cybersecurity
Penetration testing aligned with FFIEC & NIST standards
SOC 2 Type 2 Certified
Independently audited data security & privacy controls
Our Capabilities
Specialized expertise at the intersection of compliance, cybersecurity, and AI for U.S. financial institutions.
Credit Risk Rating Model Validation & Development
Learn more →Independent validation of credit risk rating models — including Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD) — under Federal Reserve/OCC SR 11-7 Model Risk Management guidelines. Covers conceptual soundness, data integrity, performance benchmarking, and governance documentation.
Bank Policy & Procedure Compliance Review
Learn more →Alignment review of bank policies and procedures against current U.S. financial regulations, FFIEC examination guidance, and OCC supervisory expectations — covering BSA/AML programs, lending policies, information security standards, and vendor management frameworks to identify compliance gaps before regulatory examination.
Internal Audit Services
Learn more →Risk-based internal audit services that establish audit methodology, develop prioritized multi-year audit plans aligned with IIA Standards, and execute comprehensive control testing across key risk areas — including BSA/AML, cybersecurity, and lending — producing actionable findings for Board-level governance oversight.
AI & AI Compliance Platform
Learn more →AI compliance platforms and custom AI agents deployed on Microsoft Azure, purpose-built for regulated financial environments. Automates regulatory report drafting, compliance monitoring, and document processing within GLBA and SOC 2 frameworks — typically reducing manual compliance workload by 10–40 hours per reporting cycle.
BSA/AML Transaction Monitoring Validation & Scenario Tuning
Learn more →Independent validation and optimization of BSA/AML transaction monitoring systems and sanctions screening models. At many institutions, false positive rates exceed 90% of total alerts. Finoptics identifies miscalibrated thresholds and aligns programs with FinCEN guidance and OCC SR 11-7 — reducing unnecessary SAR workload while maintaining detection coverage.
Network Penetration Testing
Learn more →Internal and external network penetration testing that simulates real-world attack scenarios against firewalls, access controls, and network segmentation. Assessments follow FFIEC Cybersecurity Assessment Tool methodology and NIST Cybersecurity Framework guidelines, producing prioritized remediation recommendations aligned with GLBA safeguards requirements.
Human Capital Analytics & Intelligent Process Automation
Learn more →Data-driven workforce analytics combined with intelligent process automation for financial services operations — identifying performance patterns, optimizing resource allocation, and automating routine compliance and operational workflows to reduce manual processing time and improve consistency.
Case studies
What we do
Finoptics LLC is a compliance, cybersecurity, and AI consulting firm serving U.S.-regulated financial institutions. We specialize in model validation (credit risk, BSA/AML under SR 11-7), regulatory compliance, network penetration testing, and AI compliance platforms — delivering practical solutions that meet the demands of both operations and regulators.
Who are we
At Finoptics, we bring together a team of specialists with expertise in financial regulation, data engineering, and AI-driven technology. Our work centers on helping financial institutions modernize their operations through practical, secure, and well-governed solutions tailored to each client's environment.
We focus on bringing AI and data-driven methods into the operational areas where our clients already work, enabling smoother processes, reduced manual workload, and stronger alignment with regulatory expectations. Instead of providing generic tools, we build internal solutions tailored to each organization's structure and policies, ensuring the technology integrates naturally into existing workflows.
With Finoptics, financial institutions gain a partner that understands both technological innovation and the realities of regulated operations. We bridge the gap between AI innovation and compliance, helping clients build a future-ready financial infrastructure.
Bridging the Gap Between AI Innovation and Compliance - Finoptics
Certified SOC 2 Type 2 - Our commitment to data security and privacy is validated by this independent accreditation, ensuring your information is protected with the highest standards.
Frequently Asked Questions
Common questions about model validation, BSA/AML compliance, cybersecurity, and AI compliance services.
What services does Finoptics LLC offer?
Finoptics LLC offers model validation (credit risk PD/LGD/EAD and BSA/AML transaction monitoring under SR 11-7), regulatory compliance advisory, internal audit services, network penetration testing, bank policy compliance review, and AI compliance platform deployment for U.S. financial institutions.
What is BSA/AML model validation?
BSA/AML model validation is the independent review of a bank's transaction monitoring system to verify alert scenarios are properly calibrated, detect the correct typologies, and comply with FinCEN and OCC SR 11-7 requirements. False positive rates at many institutions exceed 90% of total alerts — validation identifies miscalibrated thresholds and scenario gaps driving unnecessary SAR workload.
What regulations govern credit risk model validation at U.S. banks?
Credit risk model validation is governed primarily by Federal Reserve/OCC SR 11-7 (Guidance on Model Risk Management), which requires banks to independently validate all models used in capital allocation and lending decisions. Validation covers conceptual soundness, performance benchmarking, and ongoing monitoring of Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD) components.
How does Finoptics approach network penetration testing?
Finoptics conducts internal and external network penetration testing simulating real-world attack scenarios against firewalls, access controls, and network segmentation. Assessments follow FFIEC Cybersecurity Assessment Tool methodology and NIST Cybersecurity Framework guidelines, producing prioritized remediation recommendations aligned with GLBA safeguards requirements.
What is an AI compliance platform?
An AI compliance platform is a purpose-built system that uses artificial intelligence to automate regulatory reporting, compliance monitoring, policy enforcement, and document processing within a financial institution's existing infrastructure. Finoptics deploys these platforms on Microsoft Azure with GLBA and SOC 2 compliant architecture, typically reducing manual compliance workload by 10–40 hours per reporting cycle.
How does Finoptics ensure data security during engagements?
Finoptics holds SOC 2 Type 2 certification, demonstrating independently audited data security and privacy controls. All technology deployments use Microsoft Azure with role-based access controls, audit logging, and data residency configurations required under GLBA. Engagement data is handled under strict confidentiality agreements and SOC 2 operational controls.
Is Finoptics LLC SOC 2 certified?
Yes. Finoptics LLC holds SOC 2 Type 2 certification, demonstrating independently audited data security and privacy controls for financial services clients.
What industries does Finoptics serve?
Finoptics primarily serves U.S.-regulated financial institutions including commercial banks, credit unions, fintechs, insurance companies, and financial holding companies. The firm also works with global organizations operating under U.S. banking regulations.
