Converging Blockchain and Voice Recording: a New Horizon in the Financial Compliance Space

By March 19, 2018 No Comments

In cooperation with comitFS and the ComChain Alliance, Verint Verba enables financial services and trading customers to push communication data including call details and media hash information into a Quorum blockchain and offer an immutable record of voice recordings for improved regulatory conformance.

We are excited to share an exciting new initiative the Verint Verba team and the ComChain Alliance (CCA) have been collaborating on recently. Verint Verba is driven by a relentless effort to continually evolve and embrace the latest technology to further increase the scope and breadth of the collaboration compliance capabilities we bring to organizations across the globe.

The best of both worlds

Verint Verba was amongst the first providers to join the ComChain Alliance and is a strong supporter of the blockchain initiative. The ComChain is an open network of banks and solution providers within the financial communications and compliance space that uses an Ethereum-based distributed ledger protocol named Quorum, which is actively managed through the Ethereum Enterprise Alliance. Alongside comitFS and other members of the initiative, we are jointly building an open standard for the provision, control, and regulation of financial communications. 

Regulations across the financial services industry require extensive records management that create significant administrative activities and costs for businesses. Many of these processes can be accelerated and automated using blockchain and smart contracts, with the required business rules and processing logic embedded in the contracts and their data validated in the blockchain.

The basic concept is using a private blockchain-based distributed ledger for trading floor and other financial services-related communications from voice recording records to trade execution to market data. The blockchain would contain voice call metadata and secure references to the recorded calls and a hash of the original recording to confirm its immutability.

Immutable records for regulatory conformance

The ComChain provides a solution to normalize call record data (or Conversation Detail Records, CDR) and simplify integration with the associated recordings among participants, thus providing tamper-resistant and permanent digital records to ensure conformance with financial regulatory obligations (MiFID II, Dodd-Frank, among other legislation). Solutions such as comitFS CAS Server and Verint Verba collaboration recording platform can publish normalized call record data that will ease the process for analytics engines to consume the data and provide necessary reports.  

Built on blockchain technology, a hash is taken from all communication metadata created by the service provider. This is stored in the ComChain ledger providing an immutable anchor for all captured data. By sharing this data with analytical tools or even the regulators, the ledger helps ensure that all the records remain complete and unchanged across the entire chain of custody.

Additionally, the ComChain offers the ability to request access to the underlying data from service providers, such as Verint Verba. Having been normalized, this data is accessible for quick search supporting statistical and compliance purposes. Users can filter CDR and relevant voice call records and visualize them through a map of links, allowing users to dig deeper into data sources and have all the related information available in a dashboard view.

Infusing compliance into the fabric of every trade

By pushing the captured voice recordings into the blockchain ledger, we jointly provide a secure and efficient way of forming immutable historical records between regulated parties and provide a simple, secure way to establish trust for virtually any kind of transaction for individuals and corporations. Verint Verba is looking to continue working closely with the ComChain to extend these capabilities with SMS capture and transcription services.

As more and more businesses in the financial services industry are investing in the blockchain, these integrated capabilities enable them to comply with strict regulatory requirements while bringing trust and reliability into all digital transactions.

Building on the potential of the alliance, Verint Verba is able to provide financial organizations with secure storage, access, and immutability for their data and also help them build a distributed, compliant communication environment.

Want to know more about the ComChain Alliance? Watch their video:

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