In the wake of 2008, regulations are increasingly complex, engendering a caution that can hinder development, so much so that compliance has become a treacherous chasm to navigate, dodging risk-averse compliance officers, who are all too eager to ambush digital initiatives.

“We see really good ideas rejected by just one person, who exercises the power to quash innovative digital initiatives that they believe will threaten the security of the business,” says Patrick Barnert, CEO of RegTech solutions provider Qumram, which advises digital businesses on compliance pitfalls and ways around them. “This is where Qumram comes in, by demonstrating that technology now exists to safeguard the business from threats arising from multi-channel interactions.”


Full digital record


“We are the camera on your shoulder, to prove exactly what happened, should there be any dispute.”

Qumram digitally records every online transaction, and leverages extensive data collated from every online move a client makes. “We are the camera on your shoulder,” Barnert explains. “We prove exactly what happened, should there be any dispute between a company and its customers.”

He provides an eye-watering example, which resulted in a civil lawsuit: a buyer took a screenshot of his payment instruction, to prove payment to a merchant, and then took possession of the goods. However, immediately after taking the screenshot, the customer had cancelled the payment. The product had already shipped, and payment was never made. Qumram supplied a recording of the customer’s mobile banking activity – the instruction being placed and then cancelled – which resulted in a successful fraud prosecution.


Protecting the customer


“The audit trail is simply a digital recording that monitors every online behavior of a client or employee,” says Barnert. “Banks are doing this to protect the interests of both the customer and the bank, but the uses go far beyond compliance and fraud detection."

"Tracking historical transactions enables prediction of future client behaviour: for example, it can suggest the timing and nature of future transactions, or indicate which products to sell, and when.” This kind of technology could easily be used to monitor and record use of robo-advice in banks, he believes.


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Qumram ensures compliance across all digital channels – websites, client portals, mobile apps, instant messaging, social media (WhatsApp, LinkedIn, WeChat, Skype etc).

We record every digital interaction, replay them in movie-like form (every mouse move, swipe, click), and then store them for the regulatory period. You can see exactly what the customer saw and did (and the employee, when the goal is to detect fraud from within), which provides indisputable evidence for compliance, legal and e-discovery purposes. The wealth of behavioural data collected for compliance purposes can also be used by marketing and customer support to improve service and customer experience.