Financial Services
Importance of omnichannel communication for financial institutions
In today's fast-paced and digitized world, a financial institution's ability to communicate efficiently and effectively with its customers is critical to its success. High-value customers expect their financial service providers to be accessible via modern platforms such as WhatsApp and Microsoft Teams. The variety of communication channels available is constantly growing, and customers increasingly want to be able to contact their financial advisors via their preferred platforms. As business communication evolves to include modern channels and new functionalities, it is becoming a key business differentiator.
Integrating modern platforms into business communication is not only in keeping with the times, but also offers considerable advantages. Messaging services such as WhatsApp, Telegram or iMessage and UC platforms such as Microsoft Teams enable fast, direct and often more informal communication, which is particularly popular with the younger generation of customers. By using these services in addition to their existing voice channels, financial firms can improve accessibility and convenience, which in turn boosts customer satisfaction and loyalty.
Effective client communication capture, governance, documentation and analysis are essential to meet the strict compliance requirements to which financial institutions are subject. By keeping a complete and compliant omnichannel record of all customer interactions, financial firms can ensure that they not only comply with recordkeeping standards, but also apply their governance policies and gain valuable insights into their customers' needs and behaviors. This contributes significantly to improving the customer experience and enabling personalized and efficient communication.
However, the challenges of meeting these compliance requirements cannot be overstated. The need to capture, govern and document every communication channel poses a significant logistical and technological challenge. However, through the strategic use of modern technologies and the continuous adaptation of compliance strategies, financial firms can successfully meet these challenges while improving the quality of their customer relationships. This is the background to the collaboration between LeapXpert and ASC, whose advanced solutions for communication capture, governance, documentation, and AI-based analysis make a significant contribution to governance and compliance regulations for global financial institutions.
Advantages of Omnichannel Communication for Banks and Financial Advisors
In the modern financial services industry, customer expectations of convenience, efficiency and personalized service are higher than ever. To meet these demands, many financial firms are adopting a seamless omnichannel communication strategy that offers numerous benefits for customer satisfaction and loyalty:
- Improved customer experience: Consistent and high-quality communication across all voice and messaging channels. Seamless switching between different communication methods without having to request information again.
- Increased accessibility: Use financial services in the most convenient way, whether online, mobile, via social media or in person.
- Personalized interactions: Personalized offers and information through dedicated communication channels, tailored to individual customer needs and preferences through the use of AI data analysis.
- Faster and more efficient services: Faster service through the integration and automation of business processes across different channels through the use of advanced technologies like federated messaging, workflow automation and AI.
- Increased customer loyalty: Increased customer loyalty through instant messaging communication channels available for high-value customer interactions.
- Competitive advantage: Differentiation from competitors through an outstanding customer experience. Positioning as a technologically advanced and customer-oriented financial firm.
- Better cross-selling and upselling: Targeted offers based on knowledge of customer interactions across all channels. Increased sales opportunities for complementary products and services.
- Lower operating costs: Increased efficiency and cost savings through the integration of communication channels. Reduction of personnel resources through automation of routine interactions.
Compliance in Customer Communication
Although the omnichannel communication strategy offers many advantages for financial institutions, they are subject to a wide range of legal and regulatory requirements. In order to meet these requirements, which apply across different countries and regions, compliance in customer communication is crucial for global and local financial firms. The most important core aspects here include:
- Recording obligations: Many regulatory frameworks, such as the MiFID II in Europe, the FINRA or the Dodd-Frank Act in the USA, require financial service institutions banks to record their communications with customers and retain them for a certain period of time. This includes emails, phone calls and, increasingly, communication via digital platforms such as WhatsApp or Microsoft Teams.
- Data protection laws: Financial firms must strictly comply with the data protection laws of the countries in which they operate. This includes the EU General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA) in the USA and other similar regulations worldwide.
- Transparency and fair practices: Financial firms need to be clear and transparent in their communications to ensure that customers understand exactly what services are being offered and on what terms.
- Cross-border compliance: For global banks, compliance with laws and regulations across borders is particularly complex, as they not only need to understand and comply with the laws of each country in which they operate, but also ensure that their global policies and procedures are implemented consistently and effectively.
Governance in Customer Communication
Financial institutions are not only looking for capturing and archiving client communication for regulatory compliance but manage them to match their strict governance policies. It involves managing data to prevent losses and safeguard against the increasing threats posed by modern messaging channels. Enterprises must go beyond basic data storage and adopt a proactive approach to ensure the integrity and security of their communications. Key enterprise controls needed for effective governance include:
- Data Protection and Security: Safeguarding sensitive information from unauthorized access and external threats, including data leakage prevention or antivirus/antimalware against external threats
- Communication controls: Supporting legal disclaimers or information barriers to prevent potential conflicts of interests between clients or Lines of Businesses within large organizations
- Automation and Integration: Streamlining processes through automation and integrating with existing enterprise systems (CRMs), trade verification management or SoC systems
- Access and Authentication: Implementing strong authentication mechanisms to control access to sensitive data or communication channels, including single sign on (SSO), role-based access control (RBAC) or multi-factor authentication (MFAs).
By leveraging these advanced enterprise controls, financial firms can build a secure, managed and transparent communication environment.
Solutions for Seamless Omnichannel Communication Documentation for Compliance and Governance
As meeting compliance requirements and enterprise governance in communication are one of the biggest challenges for financial institutions, modern technologies and platforms offer crucial solutions to enable seamless capture, governance, documentation and comprehensive analysis of communication data across all channels. One of these technologies is The LeapXpert Communications Platform, which offers companies a comprehensive solution to capture, govern and manage communications via modern messaging apps. Data security is at the heart of the platform, secured by advanced enterprise controls.
The platform is flexible and can be integrated with various corporate communication and messaging platforms. These include native messaging apps such as WhatsApp, iMessage, SMS, WeChat, Telegram, Signal and LINE. This integration enables companies to communicate with customers efficiently and securely. Another important feature of the LeapXpert’s platform is the automation and native integration with existing enterprise systems such as Microsoft Teams, which enables seamless external communication from the native Teams chat interface, integrated governance and unified archiving. This allows companies to not only meet their recordkeeping requirements, but also govern customer communications across multiple channels and block any sensitive data loss or threat like viruses and malware.
The integration with Microsoft Teams enables the LeapXpert solution to be supported by Recording Insights from ASC. Recording Insights records all a company's communication completely and securely in Microsoft Teams including external client communication from Leap Work, the LeapXpert’s native mobile and desktop application for Microsoft Teams. It is a certified, natively developed cloud solution that is hosted in Azure and integrates seamlessly with the Microsoft Teams desktop and mobile app. Calls, meetings, screen sharing, videos and internal and LeapXpert-powered external chats with clients on messaging channels can be recorded and archived. In addition, Azure AI Services can be used to transcribe, analyze and translate corporate communications.
AI-based analysis tools are particularly important for financial institutions. They can automatically identify patterns, trends and potential compliance risks in communications, enabling financial institutions to proactively respond to threats while gaining valuable insights into customer behavior. In addition, large amounts of data are analyzed in real time so that financial institutions can react quickly and effectively to changing market dynamics and regulatory requirements.
By using the AI-based compliance solution Recording Insights for Microsoft Teams, integrated with LeapXpert’s platform to capture and manage external communications from Microsoft Teams, financial institutions can gain a competitive advantage. This solution enables them to develop a deeper understanding of their customers, better serve their needs, and meet compliance and governance requirements. Additionally, it enhances employee productivity by consolidating client communication into a single, modern, business communication platform.
Case Study: Mastering Compliance Challenges in the Financial Sector
In an industry facing major compliance challenges, financial institutions have already recognized the need to revolutionize their communication processes and enable end-to-end documentation and analysis with the introduction of omnichannel communication solutions. The following case study highlights how a European Tier 1 bank has already overcome compliance and governance challenges and set a new standard in customer communication by implementing LeapXpert and ASC technologies:
Case study: Global Tier 1 Bank - Europe (Corporate & Institutional Banking)
A European bank sought a solution that would allow their employees to communicate with clients using WhatsApp without requiring a dedicated app or adding extra complexity, while adhering to the bank’s recordkeeping and governance policies. They chose LeapXpert’s solution for Microsoft Teams—deployed as a dedicated tenant on Microsoft Azure—to enable external WhatsApp messages directly from the native Teams chat interface and capture these messages for recordkeeping, thereby fulfilling their European (ESMA) and local regulatory commitments. This solution, enhanced with Recording Insights from ASC Technologies, enables the bank to maintain complete control over its data and analyze it compliantly using AI, which is especially important for banks with stringent local compliance and data protection requirements. The plan is to add additional channels such as SMS and WeChat and deploy LeapXpert’s data leakage prevention module to prevent any sensitive data losses and enhance data governance.
This case study demonstrates that the adoption of specialized solutions from LeapXpert and ASC enables international financial institutions to diversify their communication channels while effectively meeting compliance regulations, reducing the risks of compliance violations and improving monitoring and reporting capabilities.
Would you like to see for yourself how the collaboration between Microsoft, ASC and LeapXpert can help you master your compliance challenges in the context of omnichannel communication?
Then be sure to watch the free recording of our joint webinar!
Future Development and Success Factors for Your Omnichannel Communication Strategy
Documentation and analysis technologies in the financial sector are constantly evolving to meet the requirements of omnichannel communication. Future developments will be strongly influenced by the integration of artificial intelligence (AI) and machine learning, which will improve the efficiency and accuracy of data analysis.
One example is Microsoft's new AI solution "Copilot", which enables partners to develop plugins for their applications. ASC Technologies was selected as a member of the Technical Adoption Program (TAP) for Microsoft 365 and now delivers a Copilot plugin for Recording Insights. This plugin enables the execution of recordings and functions of Recording Insights via Copilot commands.
These developments will improve operational efficiency, provide new insights into customer behavior, ensure compliance and strengthen customer loyalty.
The success factors for the omnichannel communication strategy in the financial sector are seamless documentation and analysis. These processes ensure adherence to compliance requirements and strengthen customer loyalty. By accurately recording and analyzing all communication channels, financial institutions can meet regulatory requirements and gain valuable insights into customer needs.
These insights enable banks to better tailor their services to individual customer needs and increase customer satisfaction. In a time of rising customer expectations and intense competition, the effective integration of capture, governance, documentation and AI-based analytics techniques, enabled by solutions from LeapXpert and ASC Technologies, offers a significant advantage. By ensuring a consistent and transparent communication strategy, banks can build customer loyalty and trust and strengthen their market position.
