Risk and compliance managers face these four challenges

1. Regulatory change and political uncertainty

Regulations are evolving constantly and, in a globalised world, it can be hard to keep up with ever-changing requirements. Brexit deal negotiations seem never-ending and, with the exit date worryingly close, financial institutions with clients in the UK and the EU will be facing uncertainty when it comes to compliance.

Recording information is a key requirement for the majority of financial regulators around the world, something that can use vast amounts of company resources.

An agile call capture service with no limits on storage is one way to remove some of the complexity of a compliant record keeping solution. Financial services organisations can record their calls and store them for as long as required by regulations such as MiFID II — that’s 5–7 years — at no extra cost.

2. Data protection and cybersecurity

Data protection is a key challenge for banks. Regulations such as the GDPR can result in fines of up to 4% of annual turnover for firms that fail to keep their customer’s data safe. Not only is data protection a legal requirement, it’s good practice. Banks with detailed and considered information security policies demonstrate to their customers that they care about protecting their interests.

Cybersecurity is at the forefront of the minds of risk and compliance managers, as they work to protect the vast amounts of sensitive information that financial institutions process. Regulations such as PCI DSS and SOX require formal data security policies, and the communication and consistent enforcement of these policies.

Advances in cloud technology can ease the burden of compliance, with secure and geographically redundant data centres ensuring the safe processing and storage of consumer conversations. Data can be encrypted and access can be restricted to further reduce risk.

Data provides a unique opportunity for financial service providers to learn more about their customers, and use this knowledge to improve products and processes within their organisations. The unstructured data held within recorded calls can initially seem inaccessible, but with voice AI it can be transformed into actionable intelligence that can power business decisions.

3. Fintech disruptors

Established banks are beginning to feel the threat of newer, more agile players within the financial services industry. The introduction of open banking in the UK has made it even easier for fintech disruptors to lure customers away with easier switching and more competitive offerings. This initiative was introduced by the government to encourage competition in an industry that has previously been dominated by a handful of powerful institutions.

Traditional banks are learning from these innovative newcomers, and embracing technology to become more agile. This extends to compliance efforts, where technology can help firms adapt to changing requirements and proactively mitigate risk within the organisation. This forward-thinking culture of risk and compliance management utilises AI to perform in-depth data analysis – providing insightful reporting that can identify and minimise risky activity. With automated reports and customisable alerts, supervisors and managers can monitor and reduce undesirable behaviours without increasing their workloads.

Embracing the potential of technology can give financial institutions the ability to differentiate themselves from the competition and win the trust of their customers by demonstrating their commitment to risk management and data protection.

4. Minimising risk

Regulations within the financial services aim to increase trust and protect consumers through transparency. With adequate data gathering and surveillance capabilities, firms can identify and minimise violations such as insider trading.

A recording solution that can track and timestamp conversations, and allows for quick and easy search and retrieval of information will give firms the upper hand in compliance and risk management. With tailored alerts making it quicker and easier to detect and deter suspicious trading activities, voice AI can help financial institutions proactively prevent penalties from regulators.

A version of this post was published over on the Dubber blog.