Only a few years ago, people had limited options available to them if they wanted to reach out to a regulated firm. To speak to a bank about their account, for instance, they’d need to choose between visiting the branch or making a phone call. Now, the way consumers communicate with all organisations is changing.
People today prefer using various applications and platforms for customer service, ranging from social media channels to mobile apps. In fact, around 66 percent of consumers say they prefer to connect with companies through messaging above all other channels.
It’s not just customers keen to get involved with messaging applications either. Many employees find using the same tools they access in their day-to-day lives more straightforward and convenient than leveraging custom-made business tools.
This overall market shift has led to a new question among highly regulated brands: How do companies remain compliant while unlocking the benefits of new collaboration tools?
Encrypted Messaging Tools and Compliance Gaps
In an age of digital transformation and remote or hybrid work, regulated companies can’t afford to ignore the popularity of messaging tools. Encrypted messaging apps such as WhatsApp, WeChat, and Telegram are everywhere. They’re a convenient solution for employees working in distributed environments and a fantastic way to engage a wider audience.
Embracing messaging tools can bring companies many benefits, from better audience relationships to improved business efficiency. However, many institutions are still struggling to transition into this new ecosystem. The primary reason for this is concern about compliance.
To remain compliant with federal and corporate regulations, business leaders must ensure they can capture, preserve, and manage conversations on encrypted messaging platforms. Unfortunately, this process has been notoriously difficult in the past, to the point where many enterprise companies have prohibited using such tools.
However, simply telling employees not to use particular tools for communication doesn’t necessarily mean you eliminate all risks. More often than not, prohibiting useful tools will likely lead to frustration among teams and “compliance gaps” in the workplace.
Why Ignoring Messaging Doesn’t Work
Compliance gaps are commonly created by “Shadow IT” communication practices, which occur when employees violate written security policies to work more efficiently. Unfortunately, these issues are more common than most businesses realise.
In 2022, news reports revealed that several banking giants were facing more than $1 billion in regulatory fines due to their employees using unapproved messaging tools, such as WhatsApp. The reason for these fines wasn’t that team members were using a different method of communication than calling or texting but that the companies weren’t tracking and recording these conversations.
Failing to recognise and respond to the demand for encrypted messaging in the communication environment also means companies neglect to implement proper compliance practices. If you don’t know your employees are using WhatsApp to check in with customers, you don’t have a way of tracking and managing those conversations.
For instance, in one case, a broker-dealer firm received a $50,000 fine after failing to review and retain WhatsApp messages related to the business. The WSPs established by the company prohibited the use of business instant messaging, which meant they failed to keep any records. However, if the brand had granted access to encrypted messaging tools, it would have been able to implement strategies for compliant conversation management.
