Corlytics & Digital Reasoning partner to boost conduct risk detection

Corlytics and Digital Reasoning are set to collaborate on an integrated regulatory intelligence and surveillance offering.

With financial institutions constantly assessing whether they can better control their risks, Corlytics will combine its deep understanding and insight of the regulated financial market with Digital Reasoning’s artificial intelligence technology for conduct surveillance.

Together the RegTech’s said they will enable financial institutions to develop new detection strategies and address blind-spots in risk coverage.

John Byrne, CEO of Corlytics said: “Every time a regulator communicates to the market or publishes a document, we break that information down, classifying its industry impact and adding it to our intelligence. Speeches, industry guidance, thematic reviews, and business plans all yield insight into regulatory intent.

“Combined with our global enforcements analysis, we can offer a single end-to-end source of regulatory assessment risk of regulatory change information. This insight, combined with Digital Reasoning’s market-leading AI-enabled Conduct Surveillance technology, is set to be a game changer for regulated firms.”

Headquartered in Nashville, Tennessee, Digital Reasoning provides solutions for financial institutions, healthcare and security & intelligence businesses. Its conduct surveillance solution uses patented AI to turn all forms of communications and structured data into discoverable, understandable, and actionable insights. Trained by compliance and front office control experts at leading financial institutions, it combines analysis of behaviours, intentions, emotions, and behaviours to build profiles that reveal the existence and extent of conduct risk.

While its customer insights technology helps financial institutions accelerate their customer-centric strategies by identifying hidden trends and opportunities that can drive revenue, and uncovering early signs of dissatisfaction.

“Monitored employees learn how surveillance works and can learn evasion tactics,” said Brett Jackson, CEO of Digital Reasoning. “Hence, misconduct typologies can be expected to evolve, sometimes quite rapidly. Corlytics continuously scans a diverse set of authoritative data sources that can inform compliance teams how surveillance strategies are evolving, and the impact of failing to detect certain types of misconduct.”

Founded in 2013, Corlytics reduces regulatory risk for financial institutions by mining intelligence from enforcement notices from all major regulators across the globe, with advanced risk models applied to the data, and targeted user applications to exploit resulting data.

The company aims to solve the problem of the inability to accurately quantify regulatory risk by providing intelligence and predictive analytics to help the banks, regulators and their advisors make informed decisions regarding their regulatory risk exposure.

Earlier this year, Corlytics launched a regulatory taxonomy management solution for all financial institutions. Its solution streamlines the process of mapping complex financial regulatory information and data to a regulated firm’s legal structure, businesses, products and control frameworks.

Both Corlytics and Digital Reasoning were hand-picked by industry experts for the RegTech 100. The RegTech 100 is part of the Global RegTech review – an essential, in-depth analysis of the global RegTech market.