With billions paid out in fines for traders bad behaviour, banks are turning to robots to monitor staff
You can't hold back the tide of technology and it's set to wash over the banking sector even more.
One of the big issues with the recent trading scandals was the fact that most of the dodgy dealings were conducted via messaging services. Banks have stepped up surveillance of internal communications but it's largely been left to humans to do the watching.
Bloomberg report that the robots are coming to the rescue as more sophisticated systems are being put in place to sift through traders calls, emails and chat messages. It's not just the banks that are stepping up their game. Nasdaq Inc is partnering with a firm called Digital Reasoning to join up its trade surveillance software. Due to the amount of false positive recorded by current automated systems, humans were still required to go over the data from the machines. It's hoped the latest robots will reduce that need.
Compliance is the hot sector in the finance industry at the moment and staffing levels have never been higher, even though many banks are closing parts of their operations and cutting staff.
The step up in technology to combat possible misdemeanors is all part on the clampdown on what information can pass between traders. Good news for those of you who think bank traders need closer monitoring but bad news for information flows the like of which we put up on site.
The full story from Bloomberg here
