AI Case Study

NatWest trials audio analysis tool to detect mortgage broker misdeeds when interacting with clients using natural language processing

NatWest is trialling audio analytical software developed by Recordsure to record and analyse conversations between customers and mortgage brokers to detect possible regulatory misconduct by its brokers.

Industry

Financial Services

Investment Banking And Investment Services

Project Overview

According to FT Adviser, "Recordsure is currently being trialled with some NatWest mortgage advisers, although the bank is keen to roll it out to other areas where regulated conversations occur... the technology will record audio visual consultations, which both the client adviser and the consenting customer will have immediate access to in order to review what was said. The AI tool will learn to better understand interactions between the bank and customer’s over time. As it learns, it will be able to help drive efficiencies in NatWest’s compliance efforts." Internet of Business reports: "The recordings are encrypted and uploaded to a secure cloud in real-time... The technology then allows both parties to play them back via an audio file stored on servers in data centres housed at former UK and US military facilities, built to protect data and people in the event of a nuclear attack".

Reported Results

PIlot; results not yet available. However, in FT Adviser the vendor claims it "can create significant efficiencies in banks’ compliance monitoring processes, resulting in up to a 50 per cent reduction in compliance costs".

Technology

"Artificial intelligence technology analyses the conversation, and segments portions of the dialogue into different files, such as elements dealing with initial disclosure, financial advice, and even general chat. It is also capable of flagging up topic areas that were not covered and has the ability to learn and adapt, insuring the system is continually improving." (FT Adviser)

Function

Human Resources

Compliance

Background

From Internet of Business: "In 2014, RBS and Natwest were fined almost £14.5 million by the Financial Conduct Authority (FCA) watchdog, for serious failings in mortgage advice given to customers. According to the FCA’s report: 'The issues with the sales process included affordability assessments failing to consider the full extent of the customer’s budget when making a recommendation, failing to advise customers who were looking to consolidate debt properly and not advising customers what mortgage term was appropriate for them.' Bank staff also offered personal views on the future movement of interests rates, the FCA found. Two reviews of sales from 2012, meanwhile, found that in over half the cases, 'the suitability of the advice was not clear from the file or call recording.'"

Benefits

Data

Audio data, stored on cloud/external servers