AI in Institutional Finance
Greenwich Associates names Sybenetix as a leading RegTech company harnessing the power of AI to reduce costs through automating tasks within the Financial Industry. AI, machine learning and robotic process automation play an increasingly pivotal role when it comes to compliance, fraud detection and robo-advising.
One company taking a different approach, writes Richard Johnson, is Sybenetix, a U.K-based company focusing on developing behavioural analytics and AI for financial firms. Rather than just analyzing the trades, Sybenetix analyzes the historical trading patterns of traders to learn and understand their trading style, and thereby can identify unusual changes in behavior and potentially suspicious activity. The technology was developed with one of the world’s largest hedge funds as a foundation client.
If trading occurs out of the normal range of behavior, it is flagged to the compliance officer who will analyze the trade and flag it as a high or low risk. The system then take this feedback to improve future analysis. In addition, unlike human traders and compliance officers, the Sybenetix system has a perfect memory of the events leading up to each trade, which can assist with regulatory inquiries.