Deutsche spin-out, Breaking Wave, teams with Relativity on risk detection

Financial industry continues the wider adoption of AI solutions

by | August 3, 2022 | bobsguide

Deutsche Bank’s fintech company Breaking Wave has selected legal and compliance technology group Relativity’s AI-powered communication surveillance product Relativity Trace to strengthen its compliance and regulatory resources.

Upon implementation of Relativity Trace, Breaking Wave will be able to use the product’s AI capabilities to improve its automated risk detection proficiency for trading. The risks covered include change of venue, hate and discrimination, as well as collaborative behaviour.

Relativity claims that its product will decrease false positives and improve review accuracy and speed for Breaking Wave.

The company also states that its AI capabilities along with its plans to advance its AI solutions for compliance teams were fundamental in Breaking Wave’s selection of Relativity Trace.

Breaking Wave’s deployment of Relativity Trace gives the Deutsche Bank fintech access to 50 pre-built policies.

Each policy leverages advanced lexicons, metadata, and machine learning to pinpoint risk and reduce false-positive alerts.

According to Jordan Domash, general manager of Relativity Trace, the pre-built policies enabled Breaking Wave to complete the implementation within two months.

Relativity Trace delivered cloud connectors to cloud-only Breaking Wave, enabling the latter to deploy the software quickly without on-premises infrastructure.

“As an engineering-led company, we are always looking for ways to use technology to automate our processes and implement our controls; Relativity Trace helps us to be compliant with minimal effort,” said Gillian Benge, chief operating officer at Breaking Wave.

“We were looking for cutting-edge technology that could use its AI capabilities to remove the noise and provide the relevant information via an intuitive UI – and Relativity Trace delivered against this.”

Breaking Wave is a fintech arm of Deutsche bank. It aims to test ideas and build digital products for the German bank and its clients.

Deutsche embraces fintech solutions

Deutsche Bank is one of the leading financial institutions actively collaborating with fintech companies across various areas to enhance its capabilities whilst enabling innovation.

In April, the bank made a sizeable investment in Canadian cloud-based workforce management software provider SkyHive to support the fintech group’s European expansion strategy.

In May, Deutsche Bank partnered with a fintech solutions provider for treasury offices, FinLync, to provide instant access to the real-time treasury for corporates.

Firms turn to AI solutions

Deutsche is the latest in a series of financial institutions to adopt AI solutions to enhance their internal resources.

According to a survey by Brighterion, a Mastercard company, and fintech media group LendIt, 90% of the respondents (out of more than 1,000 LendIt subscribers, including national and regional U.S. banks, credit unions, community institutions, and financial technology providers) were planning to make further investments in AI over the next five years.

Firms have been deploying AI solutions at various points in their ecosystem for better efficiency and security, with some finance firms turning to AI for risk decision-making.

In April, Standard Chartered partnered with Saphyre, a pre-trade onboarding technology provider, to use the latter’s AI platform on the bank’s capital markets division to automate its onboarding processes, reducing risks by eliminating manual tasks for both buy and sell sides.

In June, Bank Millennium Poland turned to UK real identity platform provider Onfido for automated identity verification capabilities. The move followed TSB bank’s partnership with Onfido for the same purpose.



Building Next-Generation Risk and Trading Platforms

Video | Risk management Building Next-Generation Risk and Trading Platforms

Time to Be Clear on Uncleared Margin Rules (UMR)

Best Practice | Risk management Time to Be Clear on Uncleared Margin Rules (UMR)

Eurobase International Group
Intix helps banks mitigate new transparency risks in cross-border payments

Best Practice | Payments Intix helps banks mitigate new transparency risks in cross-border payments

Safely sending millions of dollars overseas every month

Case Study | Payments Safely sending millions of dollars overseas every month