Hearsay, a provider of adviser cloud solutions for the financial services and insurance industries, has launched the next generation of its enterprise compliance platform.
Compliance and supervision teams supporting thousands of advisers monitor and review enormous amounts of advisor social and digital activity every day. Yet according to Hearsay data, only approximately 10 per cent of activities triggered by lexicon (word-based) monitoring are truly risky.
The new Hearsay compliance platform applies predictive technology to reduce false alerts and help compliance teams focus on activities that pose the highest risk, while increasing security coverage and control.
The latest platform includes the Risk Meter, the first social media compliance technology that uses machine learning to prioritise highest-risk offences for supervision teams. Machine learning allows Hearsay to take the nearly 100 million interactions it processes every year from more than 150,000 advisers and agents, and use that intelligence to predict the highest-risk items.
Purpose-built for financial services, Hearsay’s compliance platform addresses both the industry’s complex regulatory requirements, such as those from FINRA, the SEC and FFIEC, along with each firm’s unique company policies, for comprehensive supervision over advisers’ digital actions and communication.
With advisers increasingly engaging with consumers in multiple ways including on social, via text and email, compliance teams must monitor more activity across more channels. The risk of compliance violations also is heightened.
“Today, supervision teams are tasked to do more than ever before,” says Mark Gilbert, chief technology officer at Hearsay. “Hearsay’s powerful combination of machine learning, auto-sampling and auto-remediation allows them to act on the riskiest advisor behaviour quickly, while knowing they have broad coverage across their field’s activities. Teams become more productive, with deeper control and expanded coverage over advisor-client communications.”
Hearsay’s Risk Meter is the first social compliance solution that uses machine learning to prioritise violation alerts, so teams can address the highest-risk items first. Additionally, its Intelligent Alert system can catch violations based not just on prohibited words (lexicon), but other, more nuanced data, such as whether similar activities in the past were considered true alerts, thus reducing the amount of false alerts. The Risk Meter’s algorithms are trained on regulatory requirements as well as a firm’s own company policies, so that the tool can focus on what is most important to monitor and intercept for the organisation.
