Call recording is nothing new whether its for compliance, risk mitigation, fraud detection or even training purposes. However very few banks are recording mobile phone calls. Nowadays, customers expect around – the -clock customer service and support and real time responsiveness, which now requires the use of mobile phones. Customers especially expect this level of service from their banks.
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Mobile devices are necessary they are for business today, providing mobile phones to employees enables the greatest level of control and oversight.
Monitoring of mobile devices would be available firm wide, and adherence of company policies and procedures is greatly increased. Any wrong doing detected could be attributed to an individual, and not an institutional failure to supervise.
Why Financial institutions need to record mobile phone calls?
There are many reasons financial institutions record calls. quality assurance, best practices and complying with regulations. The risk of non compliance is too high for financial institutions to ignore in terms of both monetary and reputational risk.
1. Conflict resolution and Quality assurance
By having calls recorded any disputes that arise between a firm and a client can be swiftly dealt with and calls can provide evidence avoiding a he said -she said situation. Regardless of the outcome, recorded evidence is compelling, and sometimes may even rebut information presented through documentation or oral testimony.
In today’s global pandemic situation with COVID – 19, where many employees are working from home the need for mobile recording is quite evident. If you only record office landlines, you cannot prove or back up employees, leaving your firm liable to huge risk, as if any dispute were ti arise you have no evidence.
Financial institutions also record for quality assurance purposes. Even while remote working, a quality assurance manager can still listen to interactions provide feedback and improve processes and customer services.
2. To comply with regulations
In today’s heavily regulated business environment, financial institutions must comply with a variety of laws and requirements to remain insured and avoid heavy penalties.
With U.S. financial legislation such as the Dodd-Frank, Consumer Protection Act and CCPA as well as in MiFID II and GDPR in Europe, banks have been looking at how best to monitor and control the activities of their employees and their contact centers to ensure they’re complying with all regulations.
For instance, banks in the U.S., are required to record every transaction, such as the orders from customers over the phone when buying or selling a stock. Banks must record those calls to prove they have not broken any laws and that they actually did what the customer requested.
In Europe, MiFID II expands on the current mandate requiring firms to record communications. These requirements cover ALL telephone conversations and electronic communications – including those which take place on mobile phones.
3. Avoid market abuse, through enhanced detection.
American business are losing $50 billion dollars a year alone to employee theft. Financial institutions are especially vulnerable to this and must take into consideration how culture and conduct risk affect every aspect of their operations and must ensure best practices and accountability. The top 20 banks globally spend more than $300 billion on conduct every four years. Ensuring that you use a call recording system that works correctly and captures ALL calls and communications is essential to helping with this.
With trading moving further away from the physical trading floor, there is a higher risk of market abuse. The FCA’s expectation is clear that firms must take all steps to prevent market abuse risks and firms are expected to be able to maintain a sufficiently robust control environment.
It is becoming more difficult for compliance departments, authorities, or regulators to detect market abuse and prove malicious action. Using recorded calls provides additional material for discovering the facts of a case.
If your firm only recorded and monitored trading, front-office, and back-office communications, and excluded communications on mobile phones, the risk of market abuse would be much higher. A few bad apples would instantly be able to perform untraceable fraud. Given the importance in today society, excluding mobile recording annuls regulatory purpose of increasing certainty, investor protection, and deterring marking abuse.
Use Artificial Intelligence (AI) to further protect your firm
If your firm records all communications including landlines and mobiles, you can take your risk management and compliance one step further with artificial intelligence. Some solutions offer capabilities such as word spotting, sentiment analysis, quasi – real- time analysis and data processing.
Around 80% of the world’s data is not structured, i.e. not organized. Large quantities of call audio data is created every day (in Recordia more than 3 million calls are processed per month), due to the large amount of stored data it is difficult to analyze, understand and classify manually, not to mention It consumes a lot of time and is expensive. By utilizing AI your firm can protect itself from fraud, non- compliance and dispute resolution by quickly using the features outlined above, to quickly access the data you need.
How can financial institutions comply and manage risk effectively?
There are a few methods in which banks can monitor, secure and reduce risk. The first step is monitoring everything from communications, trading, accounts, HR data and ensuring staff receive regular training and have a strong knowledge of all policies such as ethics, conduct and a high awareness of regulations.
There are a few factors financial institutions should take into consideration when choosing a call recording solution.
- Record multiple channels and all communications in a single platform
- Does the provider themselves comply with regulations that cover them
- Fault tolerance to ensure recording is never interrupted or files lost
- Seamless recording of mobile phones to ensure you comply with all regulations and don’t miss any interaction
- Does the solution incorporate Artificial Intelligence and Speech Analytics
If you would like further assistance or more information about our Recordia solution, please do not hesitate to contact us.
