Customer Since
2020

Headquarters Location
Tokyo, Japan

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How did they do it?

  • Moved from multiple discrete surveillance systems to Relativity Trace, one flexible solution to support complex escalations and workflows
  • Reduced alert volume by more than 80% to allow a small compliance team to find real risk
  • Automated electronic and audio communication surveillance for a global team, with a focus on Japanese language

The Business Challenge: A Manual Review Process for One Small Team

Headquartered in Tokyo with major subsidiaries in London, Hong Kong, and New York, Daiwa is one of the largest Japanese financial groups. They operate in sales and trading services across a variety of financial products to both corporate and institutional clients.

Daiwa’s European operation, based in London, initiated a search for a regulatory compliance communications surveillance platform to help their small compliance team monitor more than 400 individuals across several locations. Their business is mainly conducted in Japanese and English, and they needed a solution that would monitor their team, with the capacity to grow into monitoring other languages and data channels.

Additionally, Daiwa needed an automated communications surveillance system that could alert on both audio and electronic communications in one unified platform. Due to unsurmountable audio data volumes, the team had previously relied on manual sampling for audio calls, which can often leave teams with incomplete and inaccurate information about the level of risk.

The Solution: One Customizable Surveillance Platform

The Daiwa team selected Relativity Trace as the solution that could meet their current needs and prepare them to expand their program to include true risk detection in the future.

Daiwa began implementation with Relativity Trace’s customer success team. The team worked with many Daiwa stakeholders and technology partners to get eComms surveillance fully running and customized to Daiwa’s unique use cases and complex escalation process. Within five months, the full, multifaceted workflow was live and reviewers were operating in the system.

During the first eight months of implementation, more than 13 million documents were ingested into Relativity Trace for the monitored individuals in Daiwa’s EU office, and with fine-tuning and customer support, the team immediately saw efficiency with alerts reduced by more than 80 percent.

“Trace is able to bring in a variety of communication types and sources and keep up with an increasing amount of data. It has become an indispensable tool for Daiwa in the detection and prevention of potential market abuse.”
James Ong, Monitoring and Surveillance Team Lead at Daiwa

With alerts decreasing, the Relativity Trace team continued delivering on the other main concern for Daiwa: Japanese language capabilities. Relativity implemented Japanese lexicons to alert on the character-driven language and continued to develop audio capabilities to alert on specific Japanese words and lingo. The team worked with Daiwa to further improve the accuracy of the Japanese transcription, thus further reducing false positives for Japanese audio alerts.

“Being a Japanese firm, one of our main concerns was around the quality of the Japanese translation and how it would affect the alerts being generated by the system on both electronic and audio communications,” James said. “We have continued to work with Relativity on improving this quality and have seen great increases in the support of Japanese across the system.”

What set Relativity Trace apart?

Automating ingestion, analysis, and review

Japanese language support

Customization

Alert reduction

The Results: Eliminating False Positives, Finding Real Risk

Daiwa’s monitoring and surveillance team needed a solution that helped them find signals through the noise, reduce manual effort, and uncover true risk. With Relativity Trace, they reduced alerts by more than 80 percent. Because of this reduction, they can move faster through alerts to focus on flagged communications that require more analysis, rather than digging through irrelevant and duplicative alerts.

Additionally, having a solution with a unified viewer means Daiwa no longer needs to spend time reviewing different components individually.

“We are now able to go into one system and pull out relevant communications instead of having to go to different places, giving us time to focus on analysis and context,” James explained.

The team can also confidently review both electronic and audio communications in Japanese. Relativity Trace’s automated workflows and unique, built-in escalation process have allowed the team to support their global department more cohesively – even with only one native Japanese speaker. They no longer need to worry about missing risky content because it is in Japanese.

Because of these developments, Daiwa is looking toward future implementations that use behavioral analytics including time of calls, participants in calls – both public and private – to drill down further into risky content.

By the numbers:

  • 13 million documents
  • 80% fewer alerts
  • 5 channels
  • 5 months to implementation
  • 3,100 hours of audio reviewed in 1 year

“With an automated system that has all communications in one place, we’re able to add some complexity to our previously used manual methods. We have moved our capabilities forward, even implementing only certain lexicons over certain groups and further specificity,” James said. “Our partnership with Relativity will continue to allow us to monitor our large employee base and focus on true risky behavior.”

Ready to see what Relativity Trace can do for you?