Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites.
Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. For avoidance of any doubts and to make it easier, you may consider any links to external websites as sponsored links. Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.


42% of firms confirmed that they would be deploying behavioral analytics-based solutions and strategies in the next 12 months

NICE Actimize, a NICE business and the largest and broadest provider of a single financial crime, risk and compliance software platform for the financial services industry, released the findings of a new survey focused on behavioral analytics technology and its role in reducing operational risk, uncovering hidden threats, and enriching existing surveillance programs in place at financial services firms. The survey showed that 82 percent of respondents believe that behavioral analytics detects conduct related threats that usually cannot be discovered by traditional analytics. Moreover, this same percentage of respondents agree or strongly agree that detecting hidden threats also reduces operational risks and financial losses.

The NICE Actimize survey, titled “The Emergence of Behavioral Analytics in Financial Markets Compliance,” stated that 65 percent of respondents also recognized the value of behavioral analytics in generating new, valuable insights solely from trade data (such as orders and executions), with 42 percent of firms confirming that they would be deploying behavioral analytics-based solutions and strategies in the next 12 months.

The survey respondents stated that individuals – especially traders, investment advisors and brokers – would be the focus of their analysis. The most common behavioral factors that they would like to measure are abnormal changes in an individual’s communication method, trading hours and positions. Additionally, 91 percent agreed that viewing alerts generated by traditional analytics and behavioral data together will accelerate their investigations processes.

“Operational risk is often heightened because of an inability to detect suspicious behaviors or improper market conduct. Mitigating these risks requires analysis of behavior patterns which often uncovers hidden violations and the individual parties who may be intent on doing harm, such as insider trading or market abuse activities,” said Joe Friscia, President, NICEActimize. “Behavioral analytics helps firms detect such threats, and can provide a positive impact on risk teams, compliance and front office operations.”

About 70 percent of respondents indicated that they want to purchase their behavioral analytics solutions from a vendor or from a mix of homegrown and vendor-supplied analytics. Only 15 percent stated that they wanted to build their solutions themselves.

Approximately 60 respondents from global financial institutions, including broker/dealers and investment banks, participated in the survey. By region, approximately 36 percent were from Europe, 22 percent from APAC, and 14 percent from North America. By functional area, 31 percent were compliance; 19 percent technology; and 14 percent risk-related personnel. By asset class, 24 percent worked in equities, 15 percent in fixed income, 14 percent in FX, 11 percent in swaps, and 10 percent in options.

NICE Actimize recently introduced its Holistic Behavioral Analytics solution designed to help financial institutions uncover conduct-related threats that traditional analytics are not designed to detect. The new solution transforms existing compliance processes by discovering risks that lie in enterprise silos, a critical step in mitigating losses, thereby protecting a firm’s reputation and meeting regulatory obligations.

Please click here to download the full copy of the survey.