Fonetic Incorporates Voice Biometrics to Dodd-Frank Trading Record Keeping Compliance Solution
Fonetic has integrated voice biometrics capabilities into its Dodd-Frank Trading Record Keeping Compliance Solution.
According to the company, Fonetic is the first solution provider to use voice biometrics to enhance bank compliance with Dodd-Frank Title VII mandates for accurate voice and data record keeping, and as a means for compliance officers to greatly improve risk and fraud detection and prevention.
Fonetic's solution captures, indexes, analyzes, and extracts relevant unstructured data from all voice, email, and chat interactions to create a fully searchable database of all communications pertaining to a bank's traders and trades.
By adding biometric voice analysis, Fonetic empowers banks to verify a caller's identity, track interactions, and authenticate transactions based on the caller's unique voiceprint. With even the smallest voice sample, Fonetic can scan millions of calls and cross-match voiceprints with other known criteria, such as call content, to identify the caller. Once identified, the caller's voice becomes searchable data that banks can use to facilitate regulatory inquiries or quickly identify inappropriate trading behaviors.
"Voice recordings play a critical role in helping banks maintain regulatory compliance and protect themselves against risk and fraud, but they become an infinitely more powerful tool when banks can use them to verify who is actually speaking with whom," said Juan Manuel Soto, CEO of Fonetic.
Fonetic's voice biometrics capabilities benefit banks in several ways, including:
- Trader Identification/Verification: With only a few seconds of conversation, Fonetic can verify a trader's identity. This is very useful for tracking traders conducting business from phones other than their designated line or traders who try to mask their identity. It can also flag restricted talk among traders or identify who was speaking during conference calls.
- Counterparty Recognition: Fonetic can help banks identify counterparties with whom their traders frequently speak. This could be used to trace deals from a broker's perspective, such as whether the broker has requested several prices from the bank. It can also be used to set up a blacklist of brokers and traders with whom the bank does not wish to work, and track them even if they switch to a new financial institution.
- Trade Reconstruction: Recognizing the same voice or group of voices in different calls simplifies trade reconstruction. Filtering by voiceprint pairs can help banks find predeal, deal, and postdeal conversations with the same counterparty or broker independent of the financial institution involved.
- Compliance and Reporting: Identifying and analyzing calls belonging to the same trader and counterparty can be used for statistical reports, such as how long or often traders speak with clients, or to create alerts, such as tracking suspected financial abuse or calls with blacklisted traders.
Fonetic's Trading Record Keeping Compliance Solution was developed in 2009 for Banco Bilbao Vizcaya Argentaria to proactively prevent market abuse and adhere to stringent legislation. The solution, also implemented globally by The Santander Group, can monitor communications in up to 79 different languages and dialects, enabling compliance officers to find specific information and reconstruct all interactions associated with a trade in moments.
Fonetic's voice biometrics technology is provided by Agnitio, a global voice biometrics solutions provider for the government and commercial sectors, whose extensive customer base includes police, intelligence, military and other government organizations, as well as banks and financial institutions in more than 35 countries. Agnitio's algorithms allow for more accurate calculations of likelihood ratios involved in speaker verification, providing the highest level of accuracy, flexibility, and performance.