Hearsay, provider of Advisor Cloud solutions for the financial services and insurance industries, has introduced the next generation of its enterprise compliance platform, which 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 prioritize highest-risk offenses for supervision teams. Machine learning allows Hearsay to take the nearly 100 million interactions it processes every year from more than 150,000 advisors 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 advisors’ digital actions and communication.
“Today, supervision teams are tasked to do more than ever before,” said 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 behavior 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 prioritize 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 organization.
Additional new functionalities include:
Auto-remediation: Hearsay’s auto-remediation functionality can automatically delete or revert activities performed by an advisor that are a clear violation of policy. For example, if an advisor publishes a Facebook post natively through Facebook, breaking company rules, the Hearsay platform can automatically delete that post.
Smart lexicon: Recent Hearsay analysis found that by tuning lexicon rules, the amount of false alerts reduced by 50 percent with minimal impact on the number of true alerts. Hearsay’s smart lexicon feature uses machine learning to help firms more accurately set rules and, by feeding this intelligence into the Risk Meter’s Intelligent Alert system, reduce the number of false alerts.
For example, if an advisor publishes a post with the text, “I guarantee tomorrow’s barbecue will be amazing,” and his firm’s policy prohibits use of the term “guarantee,” Hearsay’s algorithms can analyze the post’s full context and other data before deciding whether or not to trigger an alert.
Flexible sampling: More flexible sampling provides greater control over “spot checks” on content that was not triggered by lexicon-based monitoring, ensuring potential risks aren’t slipping through the cracks.