In the rapidly evolving landscape of electronic communications (E-comms) surveillance, staying ahead of regulatory requirements and technological advancements is crucial for financial institutions. I represented LeapXpert on a panel discussion at the recent XLoD London event entitled: “Future-Proofing your Approach to E-comms Surveillance” together with the other panelists, including Darren Sirr, Global Head of Trade Surveillance at BNY Mellon Markets, Rebecca Butler, Head of Group Surveillance at NatWest Group, and Perry Goetz, Head of Compliance Solutions Product at Bloomberg. Together we aimed to shed light on key strategies and challenges in this domain. Here are the distilled insights from the discussion:
1. The Rising Regulatory Pressure and the Role of Fines
Regulatory bodies across Europe and globally are intensifying their focus on E–comms surveillance, with significant enforcements already in place and more anticipated. Financial institutions are under increasing pressure to comply with these regulations, and fines have become a critical tool for driving compliance.
2. Addressing the WhatsApp Conundrum and Future-Proofing Strategies
A key topic was how institutions have responded to the challenges posed by messaging channels such as WhatsApp. Some propose strengthening controls and focusing on a robust cultural change within organizations. We, at LeapXpert, think that embracing messaging channels is the only way because clientscontinue to use them, and therefore employees must use them too. With the right technology for the right use case, financial institutions can handle off-channel communication issues, increase user adoption and minimize compliance risks.
Panelists emphasized the importance of reviewing and simplifying attestation processes and ensuring their effectiveness in maintaining compliance.
3. Technological Adaptations and Innovations
The panelists discussed the technological responses to evolving E–comms challenges, including the integration of new communication platforms into surveillance systems. Working with large tier one financial institutions, we shared our experience about the right technology for the right use case.
For example, LeapXpert provides a comprehensive recordkeeping solution for corporate and personal devices, regardless of the enterprise device policy, across various messaging and voice channels, while safeguarding data loss, data ownership and data security risks. Technology that really solves business problems and facilitates user adoption is critical.
The adoption of advanced technology, like AI and machine learning, for pattern recognition and anomaly detection is seen as a pivotal step in future-proofing E–comms surveillance systems. This approach helps in monitoring a range of communication channels more effectively, adapting to new channels, and responding to regulatory demands more efficiently.
4. Collaboration Systems and Unconventional Communication Channels
An emerging challenge in E–comms surveillance is the rise of non-traditional communication methods, such as collaboration tools that include live chat in documents or messaging in platforms like Microsoft Teams. Panelists discussed the grey areas in defining what constitutes a communication channel and the need for clarity and adaptability in surveillance practices. The focus is shifting towards a more holistic surveillance approach that encompasses a wide range of communication methods.
The panel discussion introduced the importance of a proactive, adaptive, and technology-driven approach to E–comms surveillance. As regulatory pressures mount and communication technologies evolve, financial institutions must continually refine their strategies to stay compliant and protect their reputations. The insights from industry experts provide valuable guidance for navigating these complex challenges.
It was a privilege to be part of this discussion and it highlighted that surveillance strategies and a comprehensive set of future-proof technologies are necessary to solve E-comms surveillance challenges but there is still a lot to do.
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