eflow Global has extended the capabilities of its TZEC platform by introducing new electronic communications (eComms) archiving and surveillance modules. The new modules aim to reduce compliance costs for financial institutions, particularly with data extraction fees being priced at USD $0.20 per GB, in contrast to charges reaching up to USD $50 per GB from certain established technology vendors.
Regulatory scrutiny
Global regulators have placed increasing emphasis on digital communications recordkeeping within financial institutions. In the past five years, fines related to insufficient monitoring and archiving of electronic communications have surpassed USD $3.2 billion. Firms are expected to keep records across a range of digital channels to demonstrate that they can monitor and store communications effectively.
Comprehensive monitoring
The expanded TZEC platform provides tools for capturing and storing messages from multiple digital channels, including email, instant chat, voice, voice-to-text, and off-channel platforms. The archiving system includes search and extraction features and is designed to comply with standards such as MAR, FCA SYSC, and DORA. The company highlights the transparency of its pricing model in contrast to the higher costs and extraction fees of older systems.
AI-based surveillance
eflow Global has incorporated artificial intelligence to support communication surveillance. The TZEC Focus and TZEC Integrate modules conduct sentiment analysis, apply natural language processing, and employ machine learning to assess messages for signs of risk. The Integrate module further analyses communications by correlating them with trade data to help identify potential market abuse or manipulation. This approach is intended to give compliance teams a more comprehensive overview of risk behaviours within organisations.
Deployment and efficiency
The new modules can reportedly be implemented within 90 days, aiming to address the common industry issue of protracted and complex system rollouts. The company states that this rapid onboarding process can support clients in meeting regulatory demands more efficiently and at a lower cost, reducing what have traditionally been high barriers to compliance technology transitions.
"Financial institutions are under growing pressure to monitor and archive communications across multiple digital channels," said Ben Parker, CEO and founder, eflow Global. "TZEC equips firms with AI-powered tools to meet regulatory obligations in a cost-effective and transparent way. Unlike other legacy solutions, TZEC users can extract their archived data without being hit by significant additional charges that threaten to place firms in a 'data hostage' situation - this potentially saves mid-market firms thousands of pounds. Our rapid onboarding process also means that we can implement a client's system rapidly without the frustrating waiting times associated with lengthy implementation periods. This makes the process of meeting regulatory obligations more manageable and sustainable from day one."
The platform's tools are targeted at both buy-side and sell-side financial firms, aiming to streamline compliance operations across the sector.