JPMorgan Chase & Co (NYSE:JPM) is developing an employee surveillance program. The program aims to help the company reduce fines and legal penalties. After the financial crisis, the company was fined $36 billion.
Using an algorithm to predict behavioral patterns, the program will track employee compliance classes as well as monitor employees to make sure they are following trading rules.
The program will first be seen in the company’s trading sector before being expanded to the company’s banking and asset management sectors. It’s reported that the company has spent $730 million on the project. JPMorgan has also hired 2,500 compliance workers tasked with tracking employee behavior.
JP Morgan hopes to curb risk-taking as regulators are keeping a close eye on banks and forcing many to spin off businesses that are too risky. A company memo was sent out in February that told employees that scandals have a major impact on bonuses. The same memo also alerted executives that legal bills need to be lessened to balance the company’s books moving forward.
The company is taking a proactive approach to help increase the company’s profits by eliminating scandals and monitoring employee behavior. Everything from phone calls, email and online conversations will be monitored and assessed to find any pertinent red flags among employee behavior.