Relentlessly Increased Regulation Opens the Door for Productivity Technology

Many financial organisations have chosen not to record mobile communications at all and are often unwittingly breaching best practices and regulations such as Mifid II. Confusion is common with some even banning mobile communications by policy while still providing corporate owned devices. Other organisations are choosing to interpret the scope of who and what needs to be recorded. This is often executed through legal opinion and interpretation of the various regulations and is compounded when firms operate in multiple jurisdictions. This conflicts with the regulators who are clearly moving towards a requirement to record all electronic communication.

At the same time organisations seek advanced analytics to better understand both positive and negative behaviour of their employees and customers. Such systems require consistent, quality input to be viable and when companies and employees use different devices in different countries, this can be impractical.

It is clear the sector is yet to fully embrace recording of all mobile communications.

Over the next few years regulators are likely to tighten rules removing the ambiguity that allows for varied interpretations and management by policy. As these requirements to record increase so does then need to have a solution that offers a contextually neutral solution that works on any device, on any network worldwide, including BYOD.

The requirement for secure communication is already established with many clients choosing to use consumer applications such as WhatsApp to communicate with their financial advisor and brokers in the justified belief that these products offer a degree of security which calls on the global telephone network and SMS cannot. These consumer applications aren’t designed to be recorded and this puts them in conflict with the regulations. As the requirement to record everything increases so will the need for companies to provide secure communication with clients that meet the regulations and as such private secure and compliant communication platforms will emerge. One positive side effect of such systems will be the ability to validate to both the client and the company who is on the call and as such reduce potential for fraud on insecure communication channels such as SMS and email.

The need to record client communications is not only being driven by the regulator, insurance companies are increasingly worried about paying out for potentially high value claims when the insured company cannot prove who said what and when to a client. As such the ability to capture every call, message, email and provide this information quickly when in dispute can help reduce insurance premiums. In this ever-increasing, big data driven world where algorithm trading is prevalent knowing more about both good and bad behaviour is also driving the need to record and capture all communications, analytics are now so advanced that buying signals, stress, sentiment can all be determined from a call or message and fed back into an AI platform in order to understand trends. Even if the regulator does not want or require you to record, big data driven analytics does!

Eventually it will be necessary to record every communication, the regulator might demand it. If not big data teams or insurance providers may be the ones to insist on this. The industry can of course seek to reduce scope and assume that the wider the scope the bigger the cost, but this need not be the case. Companies who embrace recording can realise cost savings by embracing mandatory recording of all communication as it is often cheaper than having different rules and procedures for different employee or staff, different rules that then need auditing to prove to the regulator that you did record when required. Companies recording everything can also embrace the benefits of reduced admin, for example a major UK IFA group that have recently told their IFA’s that they must type up all notes of every client communication in their CRM platform! This is expected to account for 250,000 non-productive admin hours which would not be necessary if they simply record everything, transcribe it and upload it their CRM automatically.

VENNCOMM provides a fast, compliant and secure communications and capture solution in a single application that replaces the native dialler, chat apps, SMS and conferencing all in one application. With automatic recording, transcription and built in CRM integration.