▷ Four reasons why North American financial institutions are moving their compliance to the cloud

As global rules grow, financial institutions in every nation must discover creative solutions to stay compliant. A lot of these recent rules, like the EU’s MiFID II, require financial institutions to record and save every customer communication that results in the sale of a financial service. Even US banks that only work domestically are impacted when they serve EU residents.

All financial intermediaries are also quickly widening the ways they sell and assist customers, and the platforms and technologies they rely on to support these methods can differ from one place to another and from one nation to another.

So, how can financial institutions create a complete, uniform, and efficient process for capturing customer interactions across all of these methods, on any platform, and in any place, regardless of size?.

Four reasons why North American financial institutions are moving their compliance to the cloud

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1. Record every customer interaction anywhere, anytime

Cloud-based recording solutions offer tremendous flexibility to capture customer interactions across multiple channels, locations, and the technologies that support them. Traditional premise-based solutions are often limited to capturing communications on a single channel for a specific location or platform, and given the cost of implementing these solutions, scalability is required to justify the investment.

Cloud-based technologies such as Recordia® by CWS remove these limitations. Open APIs enable the capture of every interaction, regardless of the channel technology used, and a global footprint means recording can be deployed anywhere in the world for offices with just one employee or thousands.

Like most SaaS solutions, there are no upfront costs for implementing cloud recording functionality, and recording services can be added or removed at your discretion. This eliminates the challenge of size and ROI, even for small offices, and recording capacity can be scaled up and down as needed with no commitment.

2. Protect your customer data

While regulations like MiFID II require you to record and store every client interaction, other regulations like GDBR or California’s new CCPD require you to protect this personal data once acquired.

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Financial institutions have traditionally been reluctant to move compliance recording to the cloud due to security and access concerns, but in reality the cloud can be made much more secure than most on-premise based solutions.

Compliance recording platforms such as Recordia® uses sophisticated encryption and security protocols to protect this data, including HTTPS, TLS, AES256, HSM, Hash, and Rotating Key Mgmt. For financial intermediaries to replicate and maintain this level of encryption and security across traditional local platforms would cost millions and require constant monitoring and updates to maintain. When done correctly, cloud compliance logging can be made much more secure and provide levels of data redundancy that are not available with any premise-based approach.

3. Speed ​​to market

Compliance obligations can often add significant delays to the launch of new channels that financial intermediaries can leverage to attract more customers and sell more services. This complexity increases for international operations as compliance requirements differ between jurisdictions or from country to country.

Cloud solutions offer tremendous flexibility to quickly implement logging capabilities with business rules that can be uniquely tailored to each market. Additionally, by leveraging the global presence of cloud infrastructure providers like Amazon’s AWS, cloud solutions like Recordia® can retain records in the jurisdiction where they are acquired to meet local data sovereignty requirements.

This rapid global implementation of customized registration capabilities for any size location with no upfront cost can dramatically accelerate the launch of new channels to market and new ways to serve customers while meeting all compliance obligations.

4. Simplify compliance response

A global deployment of compliance logging enabled by cloud platforms such as Recordia® It greatly simplifies the compliance team’s efforts in responding to regulators.

Every customer interaction, regardless of channel or location, is immediately available through a single interface. Add powerful search capabilities like identification of keywords and your compliance team can respond quickly with any information requested by a regulator in relation to communication with customers.

The ubiquitous deployment of anywhere, anytime logging capability enabled by cloud-based compliance logging solutions can significantly simplify the efforts and costs associated with meeting the ever-evolving requirements of global compliance in the financial services industry.