Communications Supervision | The Opportunity | Fingerprint : simplebooklet.com

SUMMARYThe need for effective communications supervision is growing substantially.Moving from manual, people-driven processes to using technology thatautomates much of this work is the way to help your business scale.Utilising the right regulatory technology tools is the key to unlocking yourcompliance services’ revenue-making potential.In 2023, regulated financial businesses are using a varied range of communicationchannels to conduct business, interact with clients, and support their employeesto work from anywhere. Regulators across Europe and the US mandate that thesebusinesses MUST retain and monitor their communications to mitigate againstthe risk of financial crime and misconduct, as well as support regulatorycompliance.Conducting effective and comprehensive communications monitoring is no smallfeat for most regulated firms, and more often than not, they are not completingthis core compliance requirement to their regulator's standards (if at all).Therefore, regulated businesses turn to their compliance service providers tooutsource this activity to them.Using the right technology tools can enable your compliance service business toprovide an excellent and cost-effective communications supervision service tohundreds of clients. The Fingerprint platform will help unify, simplify, andsuperscale the communications supervision process, so your business can lean onthis service as a reliable revenue stream that can support your business to grow.Read on to find out how: CONTENTTHE NEED FOR COMMUNICATIONS SUPERVISION IN THE FINANCIAL INDUSTRY THE ‘OLD’ WAY OF DOING COMMUNICATIONS SUPERVISION THE ‘NEW’ WAY OF DOING SUPERVISION, ENABLED BY TECHNOLOGYTHE ‘OLD’ WAY VS THE ‘NEW’ WAYREAL LIFE RESULTSWHY USE TECHNOLOGY TO SUPPORT SUPERVISON SERVICES?WHY FINGERPRINT? Pg2345667SUMMARY1

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THE NEED FOR SUPERVISIONTHE NEED FOR COMMUNICATIONSSUPERVISION IN THE FINANCIALINDUSTRY IN 2023.Communications monitoring in the financial industry is not a new thing.Regulators have specified for some time, that regulated financial firms must retainand monitor their communications to manage risk and detect financial crime andmisconduct.Before COVID, monitoring communications was a straightforward task becauseemployees conducted most work on-site within a controlled office environment.Think random sampling—reviewing recorded phone calls and emails coupled withdocumenting this activity in an Excel or Word file to keep track of the workcompleted.So, what's changed?In 2023's post-pandemic working environment, hybrid and remote working is nowthe norm, and using a wide range of communication channels to conduct businessand interact with clients is here to stay. The volume and varied inputs ofcommunications data that now flow through regulated businesses have grownexponentially—and the requirement to have thorough oversight and control overthat data has not changed.Regulators worldwide are keenly aware of how our business operations haveevolved, and they are ramping up the pressure on regulated businesses to retainand monitor their communications and manage the risk within this dataeffectively. How do we know Comms Monitoring is now a focus?This year alone, regulators have handed out fines totalling $1.1 billion to majorfinancial institutions using unmonitored communication channels such asWhatsApp to conduct business (Bank of America, Goldman Sachs and HSBC, toname a few). In August 2022, the FCA also released new guidance for PrincipalFirms to improve oversight over their Appointed Representatives (ARs), includingthe need for “effective and proportionate systems and controls” to ensurePrincipals oversee and manage the risk across their AR network. The biggest takeaway from all of this? There is an increasing need for financialfirms of all sizes to ensure that all forms of communication are retained andmonitored effectively, in proportion to their way of working.The demand for compliance service providers, such as yourself, to advise thesefinancial service businesses on how to best manage the risk across theirelectronic communications and provide expert-led communications monitoringservices has never been higher.2

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1Weeklearningsystems andsetup2WeeksAccessingdata30Hoursper MonthPerform manual/ ad-hoc keyword searches in each of the client'scommunications systems (Outlook, Teams, Recorded Calls etc.)14 hoursSelect items to review randomly (random sampling) or to satisfy a KPI(e.g. review 300 emails per month)13 hoursManually review and Investigate any identified high-risk suspiciousitems further2 hoursCreate a report on the actions taken in a separate system, probably aWord or Excel document1 hourSend this report as an attachment on email to their client15 minutesTHE 'OLD' WAY OF SUPERVISIONTHE ‘OLD’ (NOT SO GREAT) WAY OF DOINGCOMMUNICATIONS MONITORINGEvery compliance service provider has a different monitoring model, but many stilluse 'traditional' methods of supervising communications that include randomsampling and semi-manual review. This 'traditional' method comes with manydifficulties—from disconnected and hard-to-access data to IT management issues,inefficient manual processes and client data security issues. Let's explore how thismodel looks for a provider onboarding a new client (10-20 person firm). Your new client gives you access to their communication channel data— email, Teams, Bloomberg Chat, and their call recorder. Yourconsultant (charging by the hour) must now be an IT expert and spendquality time getting login details and various permissions from yourclient's IT team and your own firm's external IT support provider to gainaccess to all of this data. No monitoring work has begun yet. Your compliance consultant assigned to this client spends one weekfamiliarising themselves with their client's communications retentionsystems. Depending on the system, they must spend time setting uplexicons, search parameters and reporting. Your consultant will live inthe hope that all the settings and search terms have been saved on theirclient's systems for next month's review work.Your compliance consultant spends billable time each monthmonitoring and reviewing communications within their client’s systems.They will conduct random sampling and perform searches (a needle in ahaystack approach) looking for high-risk activity, reviewing what they'vefound, and reporting on this monitoring activity.Continued Monitoring Activity & ReportingSetup and Onboarding3

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3Days15MinsTHE NEW WAY OF SUPERVISIONTHE ‘NEW’ (MUCH BETTER) WAY OF DOINGSUPERVISION, ENABLED BY TECHNOLOGYThe ‘old’ way of monitoring communications is labour-intensive, ineffective andinefficient. Using a supervision technology platform (like Fingerprint) creates manyopportunities for compliance service providers.Great technology can maximise efficiency by automating most of the heavy lifting ofmanual processes, joining up disconnected data, and identifying high-risk activityautomatically. This frees up your team's time so they can focus on the importantskilled work of investigation, and gives them the scope to take on more clients.Why using tech makes so much sense...Multi-client oversight, with one loginFingerprint enables firms to supervise the communications of hundredsof clients in a unified, single login system. All client communicationsdata is ingested and segregated automatically, and investigationworkflows, review and reporting tools are included in-platform. ALL communications are scanned & risk ranked, automaticallyFingerprint automates much of the supervision proccess, so your team don't have to find high-risk activity themselves in an endless sea of data.Fingerprint automatically scans through all your client's communicationsdata, identifies high-risk activity and immediately presents risky items in a succinct, risk ranked to-do list for your monitoriing team to review. Simple set-up, and new clients onboarded in minutesFingerprint is straightforward to set up because it has an open API. Yourclients simply give our system access to their communication channels,and the Fingerprint platform will ingest these in minutes. Yourmonitoring team can onboard new clients quickly, and there is no needto waste time learning how to use new systems with each new client.Inital Platform Set-upGetting your compliance oversight firm set up on Fingerprint is asimple switch-on process. We will help you set up client-specificsupervision policies, lexicons and search terms, as well as overarchingsupervision KPIs and reporting.Setup and Onboarding with FingerprintOnboarding new clientsFingerprint's open API means your new client can grant you access to allof their communication channels quickly and in a straightforward way.As soon as these are connected, the platform automatically ingests,scans and risk ranks client data then presents this to your team forreview.4

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3Hoursper MonthConsultant reviews high-risk items in the automatically risk rankedreview 'to do' list.1hourConsultant investigates any suspicious items further, using in-platformcase management workflows and investigation tools.2hoursFingerprint automatically generates a report on actions undertaken bythe consultant and any other reviewing parties.0hoursConsultant sends this report to their client for review and sign-off.15 minutesWITHOUT FINGERPRINTWITH FINGERPRINT30hoursConsultant hoursspent per month to supervise one client 'scommunications.2hoursConsultant hoursspent per month to supervise one client 'scommunications.With FP = 90% increase in consultant productivity3weeksRequired to onboard new clients.3daysRequired to onboard new clients.With FP = 80% reduction in new client onboarding timeContinued Monitoring Activity & ReportingMonitoring that same 10-20 firm using Fingerprint will radicallystreamline the supervision process, drastically improve oversightacross your client's data, and maximise the efficiency of yourconsultant's time by allowing them to start the investigative workimmediately. It would look something like this...The numbers speak for themselvesNEW VS. OLD5

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1255%REAL WORLD RESULTSREAL WORLD RESULTSA compliance consulting firm servicing financial businesses across Europe and theUS has experienced exceptional success by implementing the Fingerprint platformto support their managed supervision service. Using FIngerprint has allowed this firmto streamline their processes, and drastically improve their consultant output, forinstance; one full-time member of staff reviews the risk-ranked items for 200 clientfirms. They then pass on any items that need further investigation to the relevantclient manager, using the platform’s in-built workflow tools and reporting to runconsistentThey have moved away from random sampling, and dificult supervision processes,to a market leading, holistic service offering that is providing a highly profitablerevenue steam for their business. Using Fingerprint, this firm has managed to:6Using Fingerprint has allowed this firm to increase theprofitability of their $4.8M Communications Supervision Service revenue line by an extra $1.4M every year.29%ProfitIncreaseUsing Fingerprint has allowed this firm to drasticallyiIncrease their client oversight capacity and ability totake on new clients, across their supervision team.CapacityIncreaseWhy use Fingerprint for supervision?Provide a market leading supervision service - Bring a consistent,repeatable and scalable approach to your supervision processes.A user-friendly system, that is easy to adopt, and integrates with yourexisting technology tools. Designed for multi-client management – gain unified oversight over ALLClients within a single compliance platform, which includes all the triage,investigation and reporting workflows and tools you’ll need to dosupervision well.

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Kieran HolmesKey Account Manager - EMEA, USWHY FINGERPRINT?The Fingerprint platform was created in 2016 alongside a market-leading compliance serviceprovider to transform the way they oversee their network of client companies’ communications,because no other technology in the market was designed for multi-client oversight. Now in 2023, the Fingerprint platform is used by more than 120 businesses globally - rangingfrom large compliance consultancies and Outsourced CCOs to Principals and Regulatory Hostswith complex operational structures, to boutique Hedge Funds and multi-lingual Asset Managerswith offices globally.Our technology is industry-recognised and has won multiple awards over the years, including theHFM European Services Awards in 2022 for Best Regulatory Reporting Solution, and making theRegTech100 list in 2023, which features 100 of the world’s most innovative RegTech companies. From our beginning to now, our mission has always been to simplify the complex and use thepower of technology to empower compliance people and businesses across the globe.How can we help?Find out how our technology can support your business. We'd love to chat!kieran@fingerprint-supervision.comEurope Office: +44 (0)203 011 4150US Office: +1-646-5689662www.fingerprint-compliance.tech

Communications Supervision | The Opportunity | Fingerprint