Major global banks are increasing their adoption of cloud technology in an effort to monitor the actions of traders and avoid future scandals, according to new research.
A Greenwich Associates report found the majority of banks’ client relationships have evolved into a combination of electronic and phone-based communication and managing these relationships is “key to winning trading business”.
Kevin McPartland, head of research in Greenwich Associates market structure and technology practice, explained compliance departments can’t listen to employees’ every call, but cloud technology could help with this.
“Cloud-based voice technology alongside analytics can be used to capture enhanced metadata around calls, transcribe every call and apply artificial intelligence to find patterns of behaviour that warrant deeper examination,” he said.
Recent foreign exchange and benchmark manipulation scandals have cost banks billions in fines and litigation payments.
“Surveillance technology has moved from necessary evil to critical risk management tool,” McPartland added.
Greenwich explained moving systems towards cloud technology can present significant costs in the short-term, but the “long-term benefits and reduced operating costs of cloud-based solutions more than make up the difference.”