One of the technology companies that has gained from banks’ increased vigilance is Digital Reasoning, based outside Nashville in the U.S. state of Tennessee.
Digital Reasoning’s software can scan up to billions of communications from thousands of traders, spotting language patterns and raising a red flag to potentially dubious activity.
Rob Metcalf, the company’s president and chief operating officer, told Reuters there has been a sharp increase in interest for this software from banks over the last six months, just as the global investigation has taken off.
“The big banks will drive this, and regulators are interested too. It will be a ‘base-line’ capability across major banks in two years,” he said.
Metcalf says his firm is in “active conversation” with 10-20 of the world’s leading financial institutions, particularly U.S. and European firms.
Reuters contacted UBS, Deutsche Bank AG , Credit Suisse AG, JP Morgan, Citigroup, Royal Bank of Scotland and Barclays to see whether they were buying such technology. None of the banks commented for this report.