LONDON, Nov. 14, 2014 /PRNewswire/ — Many banks are still "paralyzed" by new surveillance requirements according to Nigel Cannings, CTO of compliance and speech technology experts Intelligent Voice®.
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In the wake of record fines against 5 banks for "failing to control business practices" in the Forex spot markets, the FCA in London announced a "remediation programme" to improve controls and procedures.
For several years, in the wake of the LIBOR scandal and the new US regulation such as the "Dodd-Frank" Wall Street Reform and Consumer Protection Act, many banks in the US, Europe and Asia have been looking at how best to monitor and control the activities of their traders. The particular focus is on eComms, or electronic communications.
Almost all banks already have auditable procedures in place for the random sampling of email data, and key word monitoring. Significant investments have been made in archiving and surveillance technology, such as Symantec's Enterprise Vault and CA DataMinder (formerly Orchestria).
"Where banks are struggling," says Nigel Cannings, long-time industry commentator and CTO of Intelligent Voice, "is in dealing with Instant Messaging traffic (as amply demonstrated by the Forex scandal), and voice communications."
"This has left many paralyzed with indecision as they struggle to cope with the sheer volume of new data to monitor, which means new staff, new training and new procedures. What is worse is that many technology vendors are also proposing ripping out existing procedures that do work to monitor these new types of traffic. Fundamentally, this is a mistake."
"Banks should look to see how they can reuse the best of their existing monitoring and surveillance infrastructure and feed IM, voice and other records such as trade data into their existing archiving systems and compliance workflows. With these data repositories established using frameworks that work, new technologies can be added over time that further automate the surveillance process and add further intelligence to the process."
"By proposing a complete sea change, rather than a structured series of improvements, institutions and technology vendors run the risk of making things worse, long before they get better."
About Intelligent Voice®
Intelligent Voice® is part of Chase Information Technology Services Limited, a London based software firm with over 20 years' experience of delivering mission critical transaction processing systems in the financial services industry, including to several of the world's top 20 insurers. Chase specialises in voice recognition and text analysis systems that allow companies to understand their businesses better. For further information about Intelligent Voice™, please visit http://www.intelligentvoice.com or read our White Paper "Beyond Dodd Frank" at http://www.intelligentvoice.com/assets/Beyond_Dodd_Frank.pdf
Intelligent Voice® is a registered trademark of Chase Information Technology Services Limited
Contact: Andrew Burns
Tel: +44 203 627 2670
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