Conversation Analytics to bolster compliance and remove risk in today’s volatile financial industry
Government watchdog, the Australian Prudential Regulation Authority (APRA), just raised the stakes for anyone who fails to hear their customers, threatening tough penalties for poor risk culture.
APRA indicated this week it is fed up with organisations, ignoring risks, failing to listen to customers and only acting when forced by regulators or failures. So they are looking to get tougher and hold industry to account.
Customer conversations are the “canary in the cage” for most organisations and every conversation poses an opportunity or a risk. Critically, out of thousands of phone calls occurring in contact centers every day, less than one percent is analysed via manual and labor intensive Quality Assurance (QA) and monitoring processes.
In an industry which currently faces increased public, regulatory, political, and media scrutiny, what is the cost of not listening to 99 percent of your calls? There is now incredible pressure and high expectations on financial services companies to take the initiative, manage their conduct and practices, and understand what they are really saying to customers.
To do this, businesses need to continue to improve the customer experience while strengthening compliance and risk mitigation standards. This is simply impossible to achieve using only manual QA and a call monitoring process.
According to a report released by APRA, while many institutions “recognized the need to improve data, measurement, and reporting for financial risks” most failed to “identify the need to address behaviors such as… failure to listen to the voice of the customer” and noted “issues are tolerated and action only prioritised when there is regulatory scrutiny or after adverse events.” It continues, “Poor data analytics capabilities have also hampered the ability to report insights to support challenge and decision-making.”
The cost of not listening is high – culture can sour, customer experience deteriorates, and misconduct arises. When this happens, the louder voices of the regulators take over, and businesses pay an even higher price – fines, class actions, lower share price and possibly APRA capital charges – not to mention the impact on brand equity and reputation from damage to consumer trust and loyalty.
This is preventable, and a solution is readily available to help you listen better. Call Journey, the leading pioneer in Conversation Analytics offers an affordable and secure solution that allows organisations to process and analyze complex phone conversation voice data for as low as USD $1,000 per month.
Thanks to the smarts of Artificial Intelligence and Natural Language Processing, Conversation Analytics technology is a powerful component of a company’s risk management and governance arsenal. Rather than relying on random call sampling to uncover potential issues, conversation analytics allows 100 percent of calls to be intelligently mined, transcribed and analysed for suspicious data patterns, and ‘non-compliant’ keywords and phrases. The searches can be digested into the company’s preferred analytics and e-discovery stack. The results are actionable insights, which could be used to identify and preemptively address any issues of concern.
Misconduct invariably arises when a good customer crashes into a bad culture. Avoid the collision, take control of the wheel, and start listening to what your customers are saying.