The robots are watching, but can they catch rogue traders?
The robots are watching, but can they catch rogue traders? Banks are increasingly using AI to flag the warning signs of rogue trading, in the hope of saving bns and avoiding public embarrassment, this FT video shows (watch, runtime: 01:37). Programs that monitor behavior (like when traders use their computers and how they phrase their emails) then apply advanced analytics to spot potential red flags. And some programs, like IBM’s Watson, plan to look in more detail at publicly available information, including legal convictions and divorce settlements, to assess which individuals could be a bigger risk for rogue trading due to their circumstances.
This isn’t new: We noted back in March an FT story on banks using AI scan email, IM and other bits of data for clues a trader might go rogue — while others are using robots to figure out whether you’re likely to quit your job sometime soon.