Financial trading compliance is on the verge of a new platform of data capture, automation, machine learning, and augmented oversight.
FREMONT, CA: In order to find the challenges faced by the finance departments and to find the trends they observe, almost 100 Heads of Risk and Compliance from leading asset managers and investment firms from across Europe were surveyed by WBR Insights. Here are some of the trends followed by the firms:
1. Starting a New Era In Financial Communication Compliance
The first thing is paradigm shift is in progress in financial compliance, which is driven by a changing regulatory landscape[vendor_logo_first] and rising new technologies. According to a survey, more than 67 percent of firms have already implemented, and some are in the process of adopting AI and robotics for communication capture and surveillance. The study also indicates that capturing, aggregating, and analyzing omnichannel data are considered top compliance concerns. The survey also shows that top compliance concerns include capturing, aggregating, and analyzing omnichannel data. By adopting digital channels, firms should prepare to keep unified communications, enterprise collaboration, and mobile
interactions within compliant boundaries.
2. Communication Recording Is Just The Beginning
Nowadays, the captured voice streams and e-Comms are increasingly leveraged to reconstruct trade events and to spot market abuse and show the best execution to the financial regulator. Bringing this information together effectively with transactional data will be critical to generate improved oversight and will also enable broader analyses.
Across Europe, MiFID II is considered as one of the most pressing regulatory challenges. In the other parts of the world, more data points are recorded and monitored than ever before. It will lead financial companies to face an increased cost of compliance and the need to adapt their operations to the changing regulatory environment. Already these new regulatory regimes have an impact on communication capture. At the same time, the adoption of new messaging tools unified voice or video conferencing, to close the compliance gap created by the use of these digital channels.
3. Start Focusing on Automated Controls and Augmented Oversight
Professionals are planning to adopt automation to ensure regulatory adherence and manage operational risk in the coming years. It is expected that automation will streamline several processes and will also save extra effort and time spent by humans. Sourcing high-quality data are undeniable compliance imperatives under financial services regulations. However, if some of the activities will be powered by automation framework it will help business to free up their compliance staff from these resource-intensive tasks to refocus their efforts on higher value and higher risk activities.
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