Call Recording: Ways to keep up with financial regulations

by Jose Luis Perez May 14, 2020
Call Recording: Ways to keep up with financial regulations

If you work for a financial services company who is legally required to record calls and interactions for compliance purposes, now there is a new reality driven by the latest regulations and the quarantine situation due to the COVID- 19 health crisis.

Learn more about our Recordia solution for recording calls.

This involves more channels than ever and an expanded range of interactions across different devices: voice transmissions over landlines, VoIP, mobile lines, SMS, video, screen activities, even content sharing. These interactions also include new ways to communicate when telecommuting, such as video conferencing, collaboration, and digital messaging tools.

At the same time, growing regulatory demands are driving organizations to increase call recording and interactions with artificial intelligence, automation, machine learning, and other emerging technologies to ensure regulatory compliance across all existing communication channels, from dispatch offices. operations in offices to telecommuting at home.

In the following article, we would like to provide you with sound and practical advice on how you can take advantage of call recording to manage the increased complexity and volatility of today’s regulatory space and protect your technology investments in the future.

The growth of financial regulations and the need to record calls

The evolution and growth of regulatory demands, technological advances and changing trends in communications during the last decade have posed new challenges in the market and have forced providers recording technology to adapt to this ever-evolving landscape.

Call recording is high on the agenda as companies in the financial sector must collect structured and unstructured data to comply with strict regulations such as MiFID II , CCPA and GDPR, report and seek ways to generate additional business value from recorded and stored interactions.

A set of financial legislation that came into force, such as MiFID II in the European Union, requires the capture, storage and custody of calls and other interactions with customers. This applies to a variety of companies in the financial industry, such as banks, stockbrokers, insurers, credit unions, and corporate finance companies, among others.

In particular, MiFID II, the latest financial regulation in the European Union, expands the scope of record storage to encompass more users and channels to facilitate the reconstruction of business events, while requiring companies to record all interactions that could represent a business. This puts great pressure on the capabilities of legacy call recording solutions. Recorded communications should be retained and archived with different retention periods for possible review by regulatory agencies.

Overall, the fundamental objective of these recent trade regulations and directives, along with other laws and codes of conduct at the country level, is to protect investors, strengthen market integrity, and prevent financial crime, including money laundering and the use of inside information. Those who do not meet the requirements run the risk of fines for non-compliance, serious penalties and reputational damage.

What is compliance recording and what role does it play in enabling regulatory compliance?

As we have seen, business call recording has long become a widespread and commonly adopted technology solution in financial services and large corporations.

But what makes it different? Most phone systems and messaging tools have a certain level of built-in ability to record and store conversations. However, recording call for compliance is a different story, recording technology in compliance sensitive environments must meet the following requirements:

  • Handle large volumes of call traffic (which can equal millions of conversations every month or year)
  • Capture tens of thousands of centrally regulated users
  • Support a variety of voice and electronic communication channels, and integrate with an increasing number of new and traditional digital endpoints,
  • Cover multiple call scenarios, including public, external telephone networks, public switched (PSTN), conference and mobile interactions,
  • Offer unified management and administration of recording status and captured data,
  • Provide open architecture and seamless interoperability to make data capture an integral part of infrastructure of compliance.

In particular, a centralized network-side recording procedure can help ensure that the data capture process cannot be interrupted or altered in any way by the registered user or by unauthorized third parties.

A key attribute of business compliance recording solutions is their ability to preserve, protect, and provide secure access to stored data. Given current strict privacy and data protection requirements, such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA), call recording technology must be able to provide mechanisms to access, manage and securely store data. Help ensure that it remains unalterable, auditable and fully erasable if there is no legal or regulatory reason to process and preserve it any longer.

Therefore, companies should look for compliance recording platforms that offer:

  • Multilevel role-based access control
  • Secure authentication procedures
  • Complete audit logs
  • The means to digitally encrypt and sign data

To ensure uninterrupted data capture functionality, an enterprise call recording system often relies on high availability and recording redundancy options that facilitate duplication of recording flows allowing continuous operations in the event of server failure.

Increased call recording requires access to data management and analysis

It is a fundamental requirement not only to record conversations and preserve recordings automatically, but also to provide a unified framework for managing, retrieving and replaying stored data, as well as offering ways safe and simplified administration and maintenance. Plus, advanced conversation search, keyword filtering, and tagging capabilities make it easier and faster to spot relevant interactions and analyze the details mentioned during a call.

As an extension of the data capture and process automation layers, artificial intelligence (AI) plays an increasingly important role by putting unstructured data into a structured format.

MiFID II, for example, requires investment firms to demonstrate compliance with recording and storage regulations for recordings and to periodically monitor transaction and order records subject to these requirements, including relevant conversations. This involves a certain level of automation of monitoring procedures, driving full and continuous transcription, and holistic control of interactions rather than selective sampling of recorded calls.

The new generation of call recording solutions offers a set of functionality for compliance managers to facilitate their daily work and gain more comprehensive control, such as:

  • Unified playback of captured media such as call logs, SMS, fax, email etc.
  • Data visualization dashboards and options to analyze compliance metrics, track recording trends, and drill down to anomalies and performance,
  • Report options that can be customized at the organization, group, or user level,
  • Intuitive, automated identification-based workflows keyword and rule execution.

This is completely changing the way that internal control and compliance teams perform data capture, aggregation, and investigation.

In terms of data capture, it is essential to be able to collect and store communication records from a variety of sources and data points in a common format, regardless of the multiple silos and systems in which they reside, especially in large banks and investment firms. In parallel, data must be indexed using appropriate metadata so that all information relevant to a particular business can be retrieved for audit and compliance purposes.

Another challenge in traditional operating room communications is the ability to capture all sides of the conversation clearly and distinctively. Given the nature of noisy commercial environments, legacy recorders often lack the technology to fully meet this demand. Increased communications capture with highly accurate transcription and phonetic reinforcement make it possible to adjust and adapt monitoring to the environment of a financial company, continually improving the way the engine can understand and understand merchant discourse and financial jargon. specific to your organization.

CWS offers a cloud solution for call recording and interactions that complies with current regulations and helps companies in the financial sector to comply with MiFID II, CCPA and GDPR. Learn more about Recordia.

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