Download our Smart Guide to discover 10 ways using voice technology for regulatory compliance can protect your customers and business.
Organizations throughout the world face new and existing complex regulations and top of their board agenda is governance, risk and compliance (GRC). The importance of GRC means the pressure is growing all the time to understand, manage and protect customers’ data and one of the most challenging sources is voice.
In 2019, The Financial Conduct Authority (FCA) issued almost £400 million worth of fines in the UK for compliance, legal and governance-related issues. Fines, however, are just the tip of the iceberg for companies operating non-compliant businesses. The effects on brand reputation and share price can be far more detrimental.
The importance of GRC and the exponential growth of content means businesses must look at introducing technology to help comply with their governance policies and adhering to them to protect their brand and avoid fines. It is one aspect to define the policies and another to ensure that they are implemented and complied with.
The number of financial regulations is growing, and financial organizations face enormous pressure to understand, implement and monitor the policies and processes these regulations require to ensure they remain compliant with both old and new legislation.
The following are some of the industry regulations most often breached by financial institutions:
Automatic speech recognition (ASR) has been utilized as part of customer onboarding processes to ensure that all the relevant advice has been provided and that all the essential information has been requested and received. This quality assurance process is becoming a vital part of the monitoring and supervision of many financial organisations.
A large proportion of voice calls have personal information, identifying which of those calls may or may not have pertinent information aids with the retention strategies of many organizations and ensure adherence with GDPR.
MiFID II specifically calls out the requirement to retain all records including telephone conversations. The requirement to capture, preserve, monitor and discover against these calls becomes the burden of the organization. Therefore, the ability to understand the calls and easily search across them becomes a “must-have”.
According to KPMG, regulatory technology (RegTech) is expected to make up 34% of all regulatory spending by the end of 2020.
RegTech generally includes any compliance technology or software created to address regulatory challenges and help companies understand regulatory requirements and stay compliant. The elements within it include:
The use of compliance technology for information gathering, monitoring, process automation, workflow automation, and advanced analytics is enabling the digital transformation of compliance and risk management functions.
RegTech helps reduce the overall cost of delivering compliance.
Compliance is a significant and growing challenge due to the volume of customer interactions each day. Organizations are required to make all call records accessible upon request by both regulators and customers. This means in-depth record-keeping is necessary.
As voice is such an extensively used channel, voice technology is a key component of RegTech software. It is challenging and time consuming to extract useful information from audio recordings – often requiring large teams of people to manually listen to calls.
By transforming voice recordings into text through transcription, voice technology enables 100% of pertinent customer call records to be automatically stored and indexed. They can then be accessed and searched for by relevant keywords or phrases.
To ensure that organizations comply with the governance policies, compliance teams monitor/supervise data to ensure that any infringements are identified and addressed quickly. Text-based data sources – such as transactional systems, email and chat – can easily normalize and apply intelligence across them as part of their monitoring.
Voice, however, is a challenge and often organizations use small-scale sampling of calls which only addresses around 3-5% of the voice files. This leaves financial services businesses and other organizations that deal with sensitive data incredibly exposed – with a data blind spot of over 95%.
Voice technology improves efficiency when it comes to monitoring compliance in real-time, as well as speeding up investigations with accessible customer records.
Download Speechmatics’ Smart Guide to discover 10 ways using voice technology for regulatory compliance can protect your customers and business.
The importance of compliance means RegTech is becoming more widespread to enable organizations to monitor processes, remain compliant and mitigate risk. Voice technology is a key aspect of RegTech – helping businesses remain compliant by transforming voice data into text which can then be monitored and analyzed by analytics systems.
Tom Rimmer, Speechmatics