For banks and financial institutions, the need to stay compliant with changing regulation is an ongoing challenge that has serious cost and productivity implications. For one thing, it means that compliance departments are growing at an expensive and rapid rate. It also means that already over-burdened staff have to jump through hoops to make sure they are doing the right thing, distracting them from the job they are supposed to be doing.
What if there was a new way to take some of the pressure off? Fortunately, there does appear to be a solution on the horizon and it’s arrived in the shape of video.
Why video is a solution to cutting compliance workloads
Recently, we’ve come across an increasing number of businesses in the financial services sector who want to use video to make the process of compliance more efficient. We’ve spoken to one major bank, for example, that wants to have its advisors create a post-meeting video of them summarising their face-to-face customer consultation
Recording videos would help staff to comply with recent updates to the MiFID II regulation, which stipulates that notes must be taken following meetings. The productivity benefit is that it will enable staff to do it much more quickly than they would be able to do if they had to manually write up the notes. We estimate that completing the process with video is 10 times faster.
There are many other examples of where video can be used to aid compliance and make the processes that underpin it more efficient. For example, as this article says, video can be used to distribute messages to employees more efficiently as regulations change. It can be used to create private communication channels where key team members can share knowledge. Video polls can also be used to gauge readiness on a specific topic or portion of a new regulation, reinforcing mission-critical compliance procedures.
However, while these benefits are clear, there are some key things that financial institutions need to think about to make sure their use of video is a success.
What financial organisations need to be aware of if they adopt wider use of video
The first and most important thing financial organisations need to consider if they are going to adopt video is that they are going to have to be able to easily store, tag, search and retrieve video files. Most financial institutions won’t be able to do this which is not surprising as they’re not media organisations after all, so they’re not used to having to store and provide access to large volumes of video.
But without a media management solution these tasks will be onerous and time-consuming. This is something that will need to change if they want to use video as part of their compliance processes.
This potential problem is highlighted even more clearly when you consider that financial organisations are currently using more and more video to improve customer service. Major banks like Barclays now routinely offer face-to-face banking from anywhere via video calls, for example.
In the future, it’s highly likely that regulations are going to change to stipulate that ALL customer interactions are video-recorded – especially if the industry wants to avoid something like another PPI scandal. How will organisations manage and retain all these videos in a way that ensure they maintain compliance?
The solution: effective media asset management
With banks and financial institutions using video to improve compliance, efficiency and customer service, what’s clear is that they are going to need a way to store, tag, search and retrieve all their videos.
This means asking themselves a number of key technical questions, such as:
- Do we have adequate cloud-based storage?
- Can we enable those risk managers to easily catalogue videos with metadata to make it easy to search for in the future?
If banks and financial institutions can’t answer these question, they’re going to need to start seeking out a viable media asset management solution soon in order to keep up with compliance, and competitors.
To find out more on this topic, read our latest report on risk and compliance in digital banking.
New report: video in financial services - solving risk and compliance challenges
Access and download our latest report, exploring the value of utilising video in banking and finance. Learn how leading financial institutions are using video to revolutionise compliance processes and drive better customer experiences.