The Evolution of Electronic Communications Surveillance in Finance

Unauthorized trading leads to unethical behaviors that often result in an increased risk for financial firms. Ensuring appropriate actions using electronic communication surveillance services helps mitigate such risks. These surveillance solutions aim at mitigating risks associated with collusive insiders, front trade runners, washed trading, and market manipulation. They monitor trade activities, transactions, internal controls, and other communication channels of all the team members involved in the company’s daily financial operations. 

Let's focus on the evolution of electronic communications surveillance in finance.

What Does Electronic Communications Surveillance Involve?

e-Communication surveillance involves supervising and monitoring all electronic communication channels that a firm's employees use and execute. These include everything ranging from chat and text to emails and voice calls. Automatic monitoring and surveillance systems transform these mediums into digital form and analyze them.

Issues Companies Used to Face for Electronic Communication Surveillance 

Companies use the various vendor and in-house supplied methods to monitor communication between employees, customers, and counterparties. However, such monitoring solutions are rudimentary and lexicon based. They prove to be ineffective when it comes to monitoring the exponential data generated through chats, voice calls, SMS, and emails. They are limited methods that cannot uncover people networks, patterns, sentiments, and suspicious behaviors, which eventually lead them and the company into trouble. Therefore, they need a communication surveillance program to monitor communication and prevent inappropriate behaviors.

Evolution of Futuristic Surveillance Solutions

As it becomes necessary to identify and address the wrongdoings in a financial organization, business owners feel the need to improve their existing e-communication surveillance program using predictive analysis. These solutions use a combination of machine learning, natural language process, and statistical social networks using Big Data analytics. These processes help understand the behaviors of a firm's customers, employees, and counterparties, including operations, customer representatives, and traders. These solution providers articulate the risks involved and project ethical standards that everyone must follow. 

Surveillance experts tie risk-based tolerance to alerting logic for demonstrating a balanced, matured, and sensible approach to electronic communication surveillance. The problem is that many behaviors are risky, but, only a few of them lead to real trouble. Identifying such false alerts is most critical in surveillance solutions. To strengthen its surveillance program, a firm must implement next-generation e-comms surveillance tools. These include pattern identification, statistical analysis, machine learning, scenario generation, network analysis, visualization tools, etc. 

Surveillance specialists have risk behavior experts specializing in targeting certain behavioral combinations while ruling out any false alerts. While the employees understand the new surveillance system's extent and sophistication, they change their behavior automatically for the better.

Obstacles that Outsourcing Communication Surveillance Solves

Implementing the newer communication surveillance solutions requires investment in technologies and cultural change within the organization. Leaders must define standard behavior sets to observe. The licensing, infrastructure and maintenance costs are high depending on the firm's size and scope. Therefore, outsourcing surveillance programs to experts ensures handling large data volumes while ignoring false alerts. These specialists have the skills and tools to interpret results and update solutions to ensure realistic e-comm solutions.


Financial firms used to execute communication surveillance using rudimentary systems of monitoring. However, those solutions could not monitor huge data volumes generated. Therefore, the need to evolve to prevent inappropriate behaviors encouraged firms to outsource their surveillance tasks to experts in the field. This is where Knowledge Partners with specialized surveillance solutions enter and resolve.


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