Financial institutions today navigate an intricate, multi-channel communication ecosystem – spanning email, social media, messaging apps, and beyond. This dynamic landscape poses substantial compliance challenges in an era where regulatory violations are not an option. Technology providers offer solutions to these hurdles, enabling financial firms to maintain compliance across a remote or hybrid workforce using diverse devices. In this article, we explore how.
The Compliance Challenge
Financial compliance is a make-or-break priority because it safeguards a company’s existence, credibility, and growth. Ignoring it isn’t an option – it’s a fast route to fines, lawsuits, and irrelevance. In a world where regulators wield sharper tools and stakeholders demand accountability, compliance is the foundation of survival and success.
The rise of off-channel communication poses a significant challenge for regulatory enforcement, particularly as companies face hefty fines for failing to comply with record-keeping requirements. Five years ago, archiving emails was sufficient to meet these obligations, with most communication funneled through that medium. However, as people increasingly rely on mobile phones and instant messaging platforms for business interactions, traditional restrictions – such as bans on texting contacts – have become impractical or put firms at a competitive disadvantage.
The shift has led to firms formally using these communication channels out of necessity, despite them lacking formal approval or archiving systems. Regulators – particularly the SEC in the USA – have followed suit by taking enforcement action on the broad range of communication channels available.
How can businesses stay ahead in an era of ever-tightening financial rules?
There are several ways enterprises can maintain a tight regulatory environment, including:
1. Investing in Compliance Technology
- Use AI and automation to monitor transactions and flag suspicious activity in real-time
- Implement e-communication monitoring tools that track and archive messages across multiple platforms
- Leverage blockchain for transparency in record-keeping and audit trails
Providers like Global Relay help financial institutions and others navigate compliance complexities by ensuring alignment with global regulations. Tim Ward, Senior Product Marketing Manager at Global Relay, notes that financial penalties often serve as a wake-up call, prompting firms to take compliance more seriously and seek expert solutions.
Ward emphasizes that effective compliance is a blend of technology, education, and cultural reinforcement. Most employees do not intentionally violate regulations, but without proper guidance, they may unknowingly fall into non-compliance. Clear policies and awareness programs encourage employees to use official channels while reducing regulatory risk.
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Building a Compliance-First Culture
Technology alone is not enough – compliance must be embedded within an organization’s culture.
The best compliance teams deeply understand the business, integrating policies seamlessly into daily workflows. Successful compliance comes from three angles: business operations, compliance teams, and audit functions – helping to ensure proactive risk management.
Common compliance pitfalls include overly centralized approaches that lack training and cultural alignment. When firms face fines, their initial response is often hiring consultants and implementing quick fixes. According to Global Relay’s Ward, a better long-term approach involves strategic planning, balancing technology with proactive compliance measures, and fostering collaboration between compliance and technology teams. The faster firms reach this stage, the more sustainable their compliance efforts will be.
Recommended steps to creating a compliant culture include:
- Clear policies and guidelines
- Regular training and awareness
- Leadership commitment
- Encouraging open communication and having whistleblowing procedures
- Effective monitoring and enforcement
As financial regulations continue to evolve, firms must adapt by integrating advanced technology and fostering a culture of compliance. By leveraging AI, automation, and secure communication platforms, businesses can stay ahead of regulatory challenges while maintaining a competitive edge. Investing in compliance is not just about avoiding penalties – it’s about ensuring long-term stability, trust, and success in an increasingly complex financial landscape.
Find out more at globalrelay.com
