Asset 1
The Seminal Report on the Push to the 1st Line

“We’ve come a long way since the wild pre-crisis days, but the
battle to make banks safer and conduct better is not yet won.
Our first line of attack? The 1st line of
defence By Antony Jenkins, Founder & Executive Chairman, 10x Future Technologies (formerly Group CEO of Barclays, 2012–2015)

Digital Reasoning has co-sponsored in the most comprehensive study ever conducted on the front office controls, supervision, control assurance and surveillance across the industry. This year, the report is even bigger. Conducted by 1Lod, an international benchmarking survey was collected by more than 30 of the largest financial institutions globally.

1LoD vs 2LoD

This year’s 1LoD Survey asked participants: “Where are [the
key] surveillance functions conducted at your organisation?” The survey found that more surveillance functions are operated solely in the 2LOD than the 1LOD. Compared with last year’s survey, there has been a general increase in 1st line surveillance, especially in voice. Having a reliable and sophisticated 1LOD, building an effective front office controls framework and having the ability to spot misconduct early, is essential.

Surveillance Functions in the 1LoD

There is an increasing concern for banks to adopt the latest technology to improve surveillance functions. In the 1LoD Report, Brandon Carl, Vice President of Product Management at Digital Reasoning, explains: “Our prediction is that the regulatory demands of voice surveillance will follow a similar pattern as we have seen with text. Improvements in audio analytics technology will raise regulators’ expectations of what surveillance organizations must achieve.” As automation technology improves, the industry must brace itself for these new tools. Fortunately for banks already using Digital Reasoning, our new audio analytics capability could deliver comparable performance to our text analytics.

The AI revolution is here
Conduct Surveillance is the World’s Leading Communications Analytics Solution for the Banking Industry. Conduct Surveillance uses award-winning AI to seamlessly analyze text and audio communications, and equip surveillance professionals to progress a human-centric approach to conduct risk mitigation. This system is proven to deliver a 5x increase in risks identified, and a 3x increase in escalations, with up to a 95% false-positive reduction, enabling analysts to spend more time on investigations. Around the world, our solution monitors tens of thousands of banking employees, with numbers continually growing.

The 1LoD’s 2019 Report not only highlights the development of the control functions over the last 12 months but also the predictions for the future. The report also offers perspectives from regulators, practitioners, consultants and technology experts.

A complimentary copy of the report, courtesy of Digital Reasoning, is available here.