Published: April 05, 2016 | Comments
The unique needs of banks and other financial institutions pose a number of challenges for communications recording solutions. The enactment of Dodd Frank in the United States and MiFID II in Europe compounds these challenges with regulatory and compliance requirements with the potential for severe monetary penalties for unintended failures.
The increasingly competitive struggle among financial institutions has given rise to business process integration. Business process integration connects an organization’s existing infrastructures so all technological systems work together in a seamless and streamlined manner. By connecting disparate systems in real time, it offers a competitive edge in a field where a few seconds can make the difference between success and failure.
The Transactional Challenge
Financial institutions have implemented communications recording solutions long before the current scrutiny of their organizations by government agencies. Their organic requirements make these solutions a cost of doing business.
For example, say a customer wants to purchase 1,000 shares and calls his bank advisor. The investment makes a lot of money, and everyone should be happy. But after a week, the organization gets a call, and the customer claims he/she wanted to buy 10,000 shares. The dispute must be resolved in an efficient manner.
With a communications recording solution, it may seem like a simple matter to find the transaction and resolve the matter. But with larger institutions conducting thousands of transactions a day, it may prove much more difficult.
A sophisticated communications recording solution must be closely linked to the CRM system of the financial institution as well as being closely integrated with the channel used to formalize the transaction. Today, customers communicate by traditional phone lines, email, Voice Over IP, video, chat and even social media. Moreover, sometimes they will start to communicate using one mode and formalize a transaction on another. The recording of phone and screen activities must be closely linked, and the customer number must be automatically attached to the transaction.
By integrating an organization’s internal systems, business process integration ensures all information is shared in real time. A timely response to regulators enforcing MiFID II or Dodd Frank is assured, and financial institutions are protected by transaction verification as well.
Fail Safe Solutions
Effective business process integration means all components of an organization’s infrastructure must work together in a reliable manner, including communications recording solutions. By providing only the functions needed, as well as an ongoing technology refresh, Cloud-based communications recording solutions encourage compatibility with existing infrastructures and reduce the likelihood of non-compliance or a lack of transactional verification when it is needed most.
Modular architecture often provides another method of ensuring fail-safe operation and also lets the customer purchase only the functions needed. By reducing complexity, it facilitates business process integration.
Communications recording systems must meet stringent PCI-DSS requirements. At the same time, personal information must be protected as well as the security of communications. The ability to record encrypted communications must be included in business process integration.
Communications recording solutions must be incorporated into business process integration in modern financial institutions. Moreover, choosing the right vendor with prompt and thorough customer support is critical. Global organizations without regional affiliates should be avoided. Business process integration requires fine-tuning, and adjustments are often necessary after the initial implementation.