Case Study: Automation of Compliance Checks on Trader Calls with Investors

Client: Leading Financial Firm

Consulting Company: VerticalServe

Implementation Period: 7 months

Technologies Used: Audio Models, Keywords Extraction, Transcriptions, NLP Models, MLOps Pipelines, Entity Extraction

Background: A leading financial firm needed to ensure that their traders were adhering to regulatory requirements when communicating with investors. The manual validation process for monitoring trader calls was time-consuming and error-prone, resulting in potential compliance risks. The firm approached VerticalServe to develop an automated solution for compliance checks on trader calls using advanced technologies such as audio models, NLP, and Machine Learning (ML).

Objective: To design and implement an automated solution for monitoring trader calls with investors, ensuring compliance with regulatory requirements, and enhancing the efficiency and accuracy of the process.

Solution: VerticalServe developed a comprehensive solution with the following components:

1. Audio Models and Transcriptions: VerticalServe employed advanced audio models to automatically transcribe trader calls, converting spoken language into text for further analysis.
2. Keywords Extraction: The solution used NLP techniques to extract keywords and phrases from the transcriptions, identifying relevant information for compliance checks, such as disclosures and risk details of investments.
3. NLP Models and Entity Extraction: VerticalServe implemented NLP models to analyze the extracted keywords and phrases, detecting potential compliance violations and extracting entities such as traders, investors, and investment products.
4. MLOps Pipelines: MLOps pipelines were established to automate the training, deployment, and monitoring of audio models, NLP models, and entity extraction models, ensuring continuous optimization and performance improvement.
5. Compliance Dashboard and Alerts: A user-friendly compliance dashboard was developed to display real-time results of the compliance checks, with automated alerts sent to compliance officers when potential violations were detected.
6. Integration with Existing Compliance Systems: The automated solution was seamlessly integrated with the firm’s existing compliance systems to streamline the overall monitoring process and facilitate timely responses to potential issues.

Results:

• Enhanced Efficiency: The automated solution reduced the time required for trader call compliance checks by 80%, enabling the firm to monitor a larger volume of calls and allocate resources to higher-value tasks.
• Improved Accuracy: Advanced audio models and NLP techniques resulted in a 90% reduction in errors, ensuring more accurate and consistent compliance checks.
• Reduced Compliance Risk: The automated solution enabled the firm to conduct more thorough and proactive monitoring of trader calls, reducing the risk of regulatory penalties and reputational damage.
• Continuous Improvement: The MLOps pipelines facilitated ongoing optimization and performance improvement of the models, adapting to changing regulatory requirements and user feedback.
• Scalable Solution: The cloud-based architecture and modular design of the solution allowed for easy scaling and adaptation to accommodate evolving business needs and additional communication channels.

The automated solution developed by VerticalServe significantly improved the efficiency, accuracy, and compliance of monitoring trader calls with investors, reducing the firm’s operational risks and costs. The firm has since expanded the solution to other communication channels and regulatory areas, further enhancing its overall compliance management capabilities.

About:

VerticalServe Inc — Niche Cloud, Data & AI/ML Premier Consulting Company, Partnered with Google Cloud, Confluent, AWS, Azure…50+ Customers and many success stories..

Website: http://www.VerticalServe.com

Contact: contact@verticalserve.com

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