Page 1

Importance of eDiscovery for Banks Growing technology has permeated almost every aspect of our lives. With the internet becoming an essential global phenomenon, resulting in many activities being handled electronically, time and distance have become irrelevant for many transactions. Over the years there has been a huge change in the transformation of traditional banking to e-banking. With an increase in the numbers of corporate investigations, lawsuits and regulatory audits, most companies often choose to retain almost every business record as nobody knows for certain what may be used as evidence for litigation in the future. Most courts make it clear that compliance with eDiscovery is a must and that any form of non compliance can result in companies and organizations paying huge fines. The rate at which data is growing is one of the largest problems in the eDiscovery minefield. It becomes more time consuming and expensive to recover huge amounts of electronic data. Furthermore, every document recovered needs to be reviewed by a lawyer. According to a recent study by The Radicati Group, in 2007 a typical corporate account generated around 4.3 gigabytes (GB) of electronic data per user. That number is expected to grow to 6.7 GB per year by 2011. Forrester estimates that technology spending on eDiscovery will top $4.8 billion by 2011. It is imperative for businesses to have a clear policy on data retention so as to facilitate easy retrieval. There have been instances when financial institutions have lost their cases because of the failure to produce adequate evidence. It is therefore very important for banks to have a sound eDiscovery solution, especially in sectors like banking and insurance, as there is a colossal amount of data that needs to be stored and retrieved as and when required. Banks are under more government regulation (e.g., SEC) than some other industries and often do discovery specifically for regulatory requests. Advantages of eDiscovery in the Banking Sector eDiscovery solutions enable you to respond effectively to eDiscovery requests. They reduce the volume of data subject to the discovery process and aid in the management of data according to the banking business value and risk. eDiscovery provides an end to end solution so as to enable the processing and review of information in response to litigation. Some of the advantages are: Effective Litigation – It enhances the effectiveness of litigation by identifying and collecting potentially germane information rapidly and precisely. Decrease in Costs – It leads to a reduction in costs as in-house eDiscovery make the process more automated and dependable. Increased Efficiency – Introducing the business value of ESI can simplify the identification and retrieval of information, thus increasing efficiency. Mitigation of Risk – Many financial services measure risk mitigation factors very closely. eDiscovery certainly aims at reducing all the risks. As there are rules that have complex implications for all banks and other organizations, it is vital to know what electronic information they are storing and where it is. Banks are in a better position to deal with pre-existing requirements related to electronic information as they already have some experience with managing electronic information in a structured fashion. eDiscovery is of prime importance to banks as banks are always subject to high expectations and standards. Know more on: internal investigation legal hold

Importance of eDiscovery for Banks  

Growing technology has permeated almost every aspect of our lives. With the internet becoming an essential global phenomenon, resulting in m...

Read more
Read more
Similar to
Popular now
Just for you