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Hearsay Launches Next-Generation Compliance Platform and AI-Powered Risk Meter

Supervision teams can now leverage powerful predictive technology to efficiently defend against social and digital risk

Risk Meter is first social compliance tool that uses machine learning to identify and prioritize highest-risk offenses

SAN FRANCISCO – March 23, 2017 – Hearsay, provider of Advisor Cloud solutions for the financial services and insurance industries, today introduced the next generation of its enterprise compliance platform.

Compliance and supervision teams supporting thousands of advisors monitor and review  enormous amounts of advisor social and digital activity every day. Yet according to Hearsay data, only approximately 10 percent of activities triggered by lexicon (word-based) monitoring are truly risky.

The new Hearsay compliance platform applies predictive technology to reduce false alerts and help compliance teams focus on activities that pose the highest risk, while increasing security coverage and control.

The latest platform includes the Risk Meter, the first social media compliance technology that uses machine learning to prioritize highest-risk offenses for supervision teams. Machine learning allows Hearsay to take the nearly 100 million interactions it processes every year from more than 150,000 advisors and agents, and use that intelligence to predict the highest-risk items.

Purpose-built for financial services, Hearsay’s compliance platform addresses both the industry’s complex regulatory requirements, such as those from FINRA, the SEC and FFIEC, along with each firm’s unique company policies, for comprehensive supervision over advisors’ digital actions and communication.

And with advisors increasingly engaging with consumers in multiple ways including on social, via text and email, compliance teams must monitor more activity across more channels. The risk of compliance violations also is heightened.

“Today, supervision teams are tasked to do more than ever before,” said Mark Gilbert, chief technology officer at Hearsay. “Hearsay’s powerful combination of machine learning, auto-sampling and auto-remediation allows them to act on the riskiest advisor behavior quickly, while knowing they have broad coverage across their field’s activities. Teams become more productive, with deeper control and expanded coverage over advisor-client communications.”

Hearsay Risk Meter: Harness the Intelligence of Predictive Technology

Hearsay’s Risk Meter is the first social compliance solution that uses machine learning to prioritize violation alerts, so teams can address the highest-risk items first. Additionally, its Intelligent Alert system can catch violations based not just on prohibited words (lexicon), but other, more nuanced data, such as whether similar activities in the past were considered true alerts, thus reducing the amount of false alerts. The Risk Meter’s algorithms are trained on regulatory requirements as well as a firm’s own company policies, so that the tool can focus on what is most important to monitor and intercept for the organization.

Additional new functionalities include:

Auto-remediation: Hearsay’s auto-remediation functionality can automatically delete or revert activities performed by an advisor that are a clear violation of policy. For example: If an advisor publishes a Facebook post natively through Facebook, breaking company rules, the Hearsay platform can automatically remediate (e.g.,, delete) that post.

Smart Lexicon: Recent Hearsay analysis found that by tuning lexicon rules, the amount of false alerts reduced by 50 percent with minimal impact on the number of true alerts. Hearsay’s smart lexicon feature uses machine learning to help firms more accurately set rules and – by feeding this intelligence into the Risk Meter’s Intelligent Alert system – reduce the number of false alerts. For example: If an advisor publishes a post with the text, “I guarantee tomorrow’s barbecue will be amazing,” and his firm’s policy prohibits use of the term “guarantee,” Hearsay’s algorithms can analyze the post’s full context and other data before deciding whether or not to trigger an alert.

Flexible Sampling: More flexible sampling provides greater control over “spot checks” on content that was not triggered by lexicon-based monitoring, ensuring potential risks aren’t slipping through the cracks. With 34 percent of Hearsay customers using a version of sampling content as an additional compliance checkpoint, this enhanced functionality gives them more controls – including the ability to create custom rules on frequency and criteria – to sample different types of advisor activity.


Hearsay’s next-generation compliance platform is available now. For more information, visit the Hearsay blog.


Hearsay Systems offers leading Advisor Cloud solutions for financial services, empowering advisors to efficiently and compliantly use social media, websites, text and email to engage with customers, build stronger relationships and grow their business. Its prescriptive technology processes and prioritizes data from across digital channels and data systems, providing actionable suggestions for advisors on how they should engage with customers next. Built for the enterprise, Hearsay connects these advisor-client interactions and data to corporate CRM systems and digital marketing programs, and provides efficient compliance supervision and review workflows – all on a secure, enterprise-ready platform.

Hearsay is used by more than 150,000 advisors and agents at the world’s largest financial services and insurance firms including New York Life, Raymond James and Vanguard. The company is headquartered in Silicon Valley with offices throughout North America, Europe and Asia. Connect on Facebook, Twitter, LinkedIn and the Hearsay blog.


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