Summary
What this article covers in 30 seconds
- MiFID II conversation recording can provide more than storage and retrieval.
- Recorded data can support process efficiency, customer understanding and competitor insight.
- Staff performance, service outcomes and compliance monitoring can also improve when MI is used well.
The Recordsure team attended a seminar on RegTech, Robotics and Compliance Transformation, which brought together market participants in the RegTech arena to discuss emerging issues. With just under a year to go until MiFID II implementation, it was high on the agenda.
One area of the directive likely to have a significant impact is the expansion of conversation recording requirements. Recordsure considers five ways that these requirements can generate a return on investment for a business.
In a recent blog post, Recordsure CEO Joanne Smith highlighted why firms should take advantage of the data opportunities offered by audio analytics. The conversation recording element of MiFID II will provide information about customers, internal processes and systems, products and services, and staff. That information can be used to inform business decisions and highlight emerging risk.
It may be tempting to choose the cheapest call recording technology with basic capabilities, but data mined from recorded conversations can potentially provide return on investment in five ways.
Process efficiencies
Data obtained on the customer journey and sales process can show how processes can be optimised to make them more efficient and more effective at meeting customers’ needs.
Better understanding of customers
Customer data can provide individual customer insights which, if used correctly, can drive better customer experience and loyalty.
Increased competitor insight
Gathering data on what clients say about competitors’ products and services can inform competitor analysis.
Improved staff performance
Data on staff performance, delivery of customer outcomes and service levels can drive training and development initiatives that ultimately improve the customer experience.
Enhanced compliance
Firms can determine where future risks lie by gathering data on adherence to business or compliance rules. If used correctly, this can reduce the potential for PBRs, remediation activity, fines and costly enforcement action.
To realise these benefits, firms need call recording technology that goes beyond storage and retrieval of audio records. They also need to dedicate time and resource to ongoing monitoring, ensuring the technology continues to meet required standards and that the management information provided is used effectively to deliver the right client outcomes and greater transparency. If the benefits are maximised successfully, they can far outweigh implementation costs and ongoing fees.
Frequently asked questions
Process efficiencies, better customer understanding, competitor insight, staff performance and enhanced compliance can all support return on investment.
Firms need technology that goes beyond storing and retrieving audio, plus ongoing monitoring and effective use of management information.