Financial Industry Compliance Requirements: Scaling for Digital Communications

Financial customers vastly prefer omnichannel communications. This year, 68 percent of banking customers are expected to be digital-only. This means that they will emphasize email, IMs, in-app communications, and yes, text messaging as opposed to in-person visits.

Balancing Omnichannel Growth with Compliance

While the use of digital channels offers a wealth of possibility when it comes to communicating with customers, it also begs a few questions: At what point does convenience begin to get in the way of compliance? When does harvesting these easy customer metrics start to erode customer privacy?

A recent report from the Financial Industry Regulatory Authority (FINRA) calls attention to communications compliance violations and monitoring issues. According to the report, sales representatives in some banks and brokerage firms conduct seminars and make recommendations to clients through impermissible digital channels, and the interactions are unmonitored. FINRA requires companies to establish a supervisory system to ensure securities laws and regulations are followed (Rule 3110). Penalties assessed for failure to meet financial industry compliance requirements are no joke – fines can reach millions of dollars.

Automation & Scaling for Financial Institutions

Because customers are rapidly moving to digital-only channels, salespeople are likely to persist in using digital methods to reach them. So there is suddenly an urgent need to scale up efforts to expand into digital-only spaces, while meeting financial industry compliance requirements. It’s nearly impossible for one person to monitor all customer interactions, especially for companies with large sales teams or contact centers. An AI-powered analytics platform, on the other hand, is more than suited to handle the challenge. AI-powered analytics can automatically monitor and record interactions, and even flag problematic occurrences – no matter how many salespeople or contact center agents you have.

The growth of digital communications makes it essential to work with a solution partner that brings both the technology and the experience working with banks and financial services institutions to help you establish an omnichannel presence. The goal is to meet customers where they feel comfortable while utilizing a solution to help scale and automate your interaction monitoring and regulatory adherence.

Learn more: in a recent article for TechBullion, we take a deeper dive into balancing convenience and security for your customers – read it here.