MiFiD II offers MNOs a huge opportunity to provide mobile call recording and storage/retrieval services via a subscription model.
The upcoming MiFiD II EU Directive will further tighten compliance in the financial services industry, meaning that anyone making a call to recommend or sell one or more of a broad range of financial and investment products, or with the aim of making a transaction, will have to record it, and save the call recording for five years. With an increasingly mobile workforce, it offers MNOs a huge opportunity to provide mobile call recording, and store/retrieve services via a subscription model.
Mobile call recording is once again in the news after the Financial Conduct Authority (FCA) admitted defeat in its fight against a call-recording requirement of the EU’s incoming Market in Financial Instruments Directive II (MiFID II).
The new directive is a comprehensive overhaul of the original MiFiD regulations, brought in to regulate financial trading in the aftermath of the global banking crisis. One major change to be introduced with MiFiD II, which is currently under consultation, is the stipulation that anyone making a call in which they recommend certain investment or financial products or aim to make a 'transaction' will have to record that call and save the recording for five years.
Furthermore, regulations have been extended to cover smaller firms and independent financial advisors. So, under MiFiD II, banks, brokers, financial institutions and independent advisors, will all need to have mobile call recording, and storage/retrieval systems in place by January 2017.
The FCA had argued that calls falling under MiFiD rules should only be required to be kept for six months, but the financial regulator failed to garner enough support from other EU Member States, and so has withdrawn its opposition.
In fact, the new MiFiD II regulations are very exacting, covering not only fixed line and mobile phone calls, but also IM and text messages pertaining to selling or recommending financial products or aiming to elicit a transaction. VoIP services such as Skype are also covered by the proposed rules.
Combined with the move towards mobile working, driven by remote working, mobile collaboration, and bring-your-own-device trends, it means that a whole host of new organisations, particularly SMBs in the financial services sector, will need a mobile call recording solution – as well as the means to store, manage and access every appropriate call for five years. It is clearly a significant challenge on the horizon.
On the flip side, it offers MNOs a huge opportunity to provide mobile call recording as a subscription service – and to augment it with storage and search capabilities, among others.
Of course, it is difficult to simply add mobile to existing call recording systems, so a better approach is to offer a dedicated solution for mobile users, which makes use of triggering to make efficient use of network resources. Since MNOs can target companies where call recording is compulsory, then any incoming or outgoing call can be recorded across all devices. Furthermore, if MNOs can offer such facilities to their customers on a subscription basis, then it provides a huge revenue opportunity for them.
In addition, recorded calls will need to be stored, logged and accessed whenever necessary – and each call may, for example, be a part of multiple conversations regarding the same transaction, or require employee search facilities. So there is a further opportunity to offer customers rich functionality in terms of storage, processing, accessibility and so on, as well as regulatory compliance in the mobile environment.
MNOs should already have targeted the larger financial services organisations. But under MiFiD II that opportunity broadens out to a diversity of organisations, large and small. MiFiD II will be implemented, so why wait until then to offer mobile call recording, storage and access capabilities to your MiFiD II-compliant customers?
At Gintel, we already work with a Tier 1 MNO to provide mobile call recording and rich storage, search and retrieve functionality. So if you’re thinking about how to grow your business among SME and enterprise customers, then providing mobile call recording solutions for financial services companies falling under MiFiD II should be towards the top of your list. Why not find out how to deliver such a solution by talking to Gintel?