Understanding the relationships between people, companies, property and assets can reveal a lot. The story that surfaced last week of insider trading between an ABS and a NAB employee drew a lot of attention, as one of the largest insider trading cases in Australia in recent times.
Interestingly it was reported that the relationship between the two individuals concerned, was discovered via LinkedIn, after the foreign exchange broker to one of the pair, noticed a pattern in the his trades and decided to do search further. Linked In revealed the connection; the pair had studied together at the same university.
At Encompass, our clients are very familiar with the benefit of understanding how entities in a given scenario are connected. Like this broker, they are often providing a service in relation to commercial transactions (perhaps accounting or legal advice or even providing finance). And usually they are trying to build an understanding of their client, or their client’s client, in order to make the best decision, whether that ultimately takes the form of giving the best service, best advice, minimising risk, or perhaps finding the best way to pursue a new business opportunity.
In fact there are a number of parallels between this relatively simple case of ‘connecting the dots’ and the way that Encompass empowers customers to leverage information for business outcomes. For example:
1.Professional experience + data = valuable knowledge
In this case, the broker conducted a search to find out more about his client’s circumstances. LinkedIn showed the relationship to the ABS official and this piece of information, combined with the broker’s professional experience and understanding of the broader context created valuable knowledge. Similarly it is the combination of the user’s experience (as an insolvency, banking or legal professional for example) combined with the verified personal, property or company data visible in Encompass, that creates knowledge for our customers which is highly valued because of the implications it has on the decisions they make and ultimately, business outcomes.
2.Knowing when to dig deeper
While the connection in itself was by no means the end of the process in the reported case, discovery of this relationship was the critical information, which not only raised a red flag, but also highlighted where further investigation should be focussed. Likewise, the alerts and symbols in the Encompass visualisation reveal connections and highlight important information that may otherwise be missed and crucially this service helps our time poor customers to quickly and easily spot when and where to dig deeper.
3.Rapid, anytime, anywhere access to information
Having the technology available to quickly and easily reveal the connection between the two parties, empowered the broker with timely and critical information. Being in the cloud and developed to provide speed and ease of use, Encompass is also designed to give clients fast access to high value information anytime, from anywhere.
If the information needed to reveal insider trading can be discovered with a simple social networking tool (listing unverified information), imagine what can be discovered when verified data from regulatory sources like ASIC, Land Title offices and the PPS Register are in the picture.
Using Encompass, our clients are able to identify things like shareholders with common addresses, clients with assets secured by third parties (which they may not have otherwise known about) or see when their client has relationships worth learning more about. In most cases however, it’s not about finding who you don’t want to do business with, as much as building a full understanding of your client or your client’s client, so that the best decision can be made.