Financial Institutions that fall foul of compliance regulations were fined $2.7 billion in 2021 globally, according to Forbes. This included violations of Anti-Money Laundering (AML) rules, Know Your Customer (KYC) checks and operating guidelines. As financial regulation increases to ensure the safety and security of the financial system and to protect consumers, financial institutions must consider how they can best protect themselves from compliance-related fines.
The latest technologies and automation, including voice recording, have the potential to be a crucial component of the Regulation Technology (RegTech) ecosystem and to help the finance industry monitor compliance. But how can voice recording be used, and why is it so effective?
Why record at all?
As part of an overall electronic communications capture requirement, voice recording technology is mandated in a number of different areas of financial services, and even where it is not strictly required, can be used not only to help manage risk but also to boost performance. This stretches from the trading floor on the investment banking side, to marketing new products to retail and insurance customers.
The pandemic has seen an explosion in the need to plug gaps in companies’ recording strategies: in January 2021, the UK’s Financial Conduct Authority released Market Watch 66 highlighting that home working employees were more at risk of falling outside of the regulations than those working in a traditional office environment, and reminding companies that the recording obligations still applied. The infrastructure changes to support this were not trivial, with massive extra capacity being laid on by MVNOs such as the now-beleaguered Truphone to support mobile recording, and a rush to install “Compliance” recording for Teams, a technology that was very much in its infancy in March 2020. And the pressure to capture online meetings is still growing.
But this massive investment is just the beginning of the story.
How is voice recording already being used in compliance?
Full article: https://www.riskcompliance.biz/news/why-voice-recording-is-important-in-compliance-monitoring-for-the-finance-industry/