Corlytics partners with Digital Reasoning to fight against trading fraud

Published on 10th May 2018

By leveraging regulatory intelligence data, clients are able to implement enhanced risk-weighted surveillance controls and broaden their risk coverage

Two highly innovative technology firms, Corlytics and Digital Reasoning, announced today that they will collaborate on an integrated regulatory intelligence and surveillance offering. Financial institutions are constantly assessing whether they can better control their risks. The combination of Corlytics’ deep understanding and insight of the regulated financial market with Digital Reasoning’s best-in-class artificial intelligence technology for conduct surveillance will enable financial institutions to develop new detection strategies and address blind-spots in risk coverage. The combined solution will be offered to Corlytics and Digital Reasoning clients globally.

Financial firms are seeking opportunities to introduce enhanced process, programme and technology solutions to meet changing regulatory expectations, and improve surveillance efficiency and effectiveness. According to analysis by Tricumen and PwC, firms have seen headcount in the front office dedicated to a control function grown by about 21% over the past six years. However, limitations with time, budget and technology mean firms often lack formal processes to optimise alerts and identify new risk areas. “Monitored employees learn how surveillance works and can learn evasion tactics,” said Brett Jackson, CEO of Digital Reasoning. “Hence, misconduct typologies can be expected to evolve, sometimes quite rapidly. Corlytics continuously scans a diverse set of authoritative data sources that can inform compliance teams how surveillance strategies are evolving, and the impact of failing to detect certain types of misconduct. The ability to automate global regulatory domain knowledge and prioritise employee behaviours based on risk intelligence is exactly the kind of elegant value-add Digital Reasoning’s customers are expecting as they turn to AI technology to implement more effective controls.”

John Byrne, CEO of Corlytics explained the depth of intelligence already held by his company:

“Every time a regulator communicates to the market or publishes a document, we break that information down, classifying its industry impact and adding it to our intelligence. Speeches, industry guidance, thematic reviews and business plans all yield insight into regulatory intent. Combined with our global enforcements analysis, we can offer a single end-to-end source of regulatory assessment risk of regulatory change information. This insight, combined with Digital Reasoning’s market leading AI-enabled conduct surveillance technology, is set to be a game changer for regulated firms.”