Enterprise Platform Uses AI and Machine Learning to Enhance Compliance Agility

by Smarsh

As communications modalities evolve, so do the needs of financial services organizations. Smarsh is responding to those changes with expanded artificial intelligence (AI) and machine learning technologies (ML) in the Smarsh Enterprise Platform. This will accelerate your ability to close regulatory gaps within North American and EU markets.

Limited agility to find risk

With data volumes expected to grow 150% by 2025, regulators are issuing fines for different issues, including:

Global banks were fined $1.1B for off-channel communications
Broker-dealers and registered investment advisers were fined $1.6B for off-channel communications
SEC's modernized books and records requirements
FINRA advised small firms that off-channel communications regulations apply to them
FCA fined an individual financial services adviser £3.6m for giving unsuitable or noncompliant advice to pension clients
FCA will establish a dedicated commodities and fixed income market manipulation team

As the pace of regulatory change accelerates, compliance teams spend weeks to months remediating or establishing new policies to cover a single risk. Multiply that by several new regulatory requirements, and the volume of communications for review, to see why more firms are using AI/ML to find and mitigate risk.

Smarsh Enterprise Conduct provides compliance teams with regulatory-grade AI and pre-packaged scenarios to detect risks, including off-channel communications, secrecy, rumor, and customer complaints.

Skip the most common AI/ML challenges with Smarsh

However, given the time it takes to hire people with AI/ML skills who have a deep understanding of the financial services industry, and compliance teams to test, validate and approve models, it can take months or even years to implement a single ML-powered risk detection solution. In the meantime, existing supervision and surveillance tools are straining to keep up, leaving firms exposed until new policies and solutions are in place to mitigate the risk.

With Smarsh, you can empower your compliance teams to take decisive action and improve your agility to adapt to an ever-changing regulatory landscape simply and quickly.

Target the most common risks to your business with Enterprise Conduct’s Scenario Evaluation

With Smarsh Scenario Evaluation, you can:

Respond to change: Leverage pre-packaged Smarsh Standard and Cognitive Scenarios to identify and escalate signals of risk. You can also use regulatory-grade AI and lexicons to build custom scenario models for your risk profile — without starting from scratch, which requires retraining and additional testing and validations.
Address risk efficiently and iterate with ease: Test, analyze, and promote the winning scenario within minutes (instead of days or weeks) to drive improvement in business outcomes faster.
Reduce time spent on reviews: The Enterprise Platform’s ML has been optimized with leading financial experts to reduce false positives by up to 95% while surfacing up to three times more real risk. Combined, this reduces time spent on review by 50% and enables staff to identify the source of violations three times faster.
Use real-world datasets: Analyze scenarios with production datasets.

Available Smarsh Scenarios

Smarsh currently offers eight new and updated pre-packaged Scenarios:

Change of venue
Secrecy
Rumor
Sexual harassment
Boasting
Inappropriate language
Intent to resign
Customer complaints

Each scenario has a model review management (MRM) report, which allows your compliance team to maintain the historical record of previously approved scenarios. This enables your compliance team to explain with confidence — and demonstrate with unequivocal evidence to audit and regulators — why a specific scenario version was selected.

You’ll be able to:

Leverage global insights: Smarsh is the only compliance firm with AI/ML models that have been used by global banks to mitigate risk for almost 10 years.
Use existing compliance staff. Compliance teams can augment or fine-tune AI/ML scenarios for your customer profile without touching the models or hiring additional staff.
Improve your firm’s agility. Explain risk and multilingual results with a single MRM report. Cover three times more types of behavioral risk than other offerings.

You can get full details about the Smarsh Enterprise Platform here.

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Smarsh

Smarsh® is the recognized global leader in electronic communications archiving solutions for regulated organizations. Smarsh provides innovative capture, archiving, e-discovery, and supervision solutions across the industry’s widest breadth of communication channels.

Scalable for organizations of all sizes, the Smarsh platform provides customers with compliance built on confidence. It enables them to strategically future-proof as new communication channels are adopted, and to realize more insight and value from the data in their archive. Customers strengthen their compliance and e-discovery initiatives and benefit from the productive use of email, social media, mobile/text messaging, instant messaging and collaboration, web, and voice channels.

Smarsh serves a global client base that spans the top banks in North America and Europe, along with leading brokerage firms, insurers, and registered investment advisors. Smarsh also enables state and local government agencies to meet their public records and e-discovery requirements. For more information, visit www.smarsh.com.

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