Credit Suisse has linked up with Palantir Technologies in a joint effort to, as Bloomberg puts it, “catch rogue employees” before they can move ahead to commit (financial) mayhem.
The joint venture, split down the middle in terms of ownership, is named Signac and took final shape in the last few weeks, the newswire noted. The initial push will be on unauthorized trading, said the firms in a presentation witnessed by Bloomberg.
Credit Suisse has said it will use the new platform among employees to monitor behavior across the organization.
Lara Warner, Credit Suisse’s compliance head, told the newswire the relationship between the two companies will help to “study external and internal events to try and learn from them. There is a toxic combination of facts that present itself in any unauthorized trading event. We focus on individual behavior, which might be indicative of the risk, instead of focusing on the symptoms.”
Palantir was founded by venture capitalist Peter Thiel. The firm itself was as highly valued as $20 billion as of last year, and its market cap is about $29 billion. The firm’s approach is to link databases together, which means that Big Data and analysis can be organized and analyzed freely.
“Wealth management may benefit even more from using technology than investment banking,” said Warner. “There are more relationship managers than traders, and they’re all around the world, speaking different languages.”
Signac will have at its helm Colleen Graham, Credit Suisse head of compliance in the Americas, and Sean Hunter from Palantir. Intelligence staff from CS will help field alerts from the system. Testing for fake or unauthorized trades is ongoing but can be drawn out. Data analyzed includes swipe card access.