Meeting New Financial Legislation with Digital Record and Replay

The new Financial Instruments Directive II (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR) come into force in January 2018 and will have a profound effect on the financial sector. With stricter requirements for comprehensive records of digital activity, and greater accessibility/ease of search, every financial sector business needs to understand the new rules and deploy systems which cater for these requirements.

Modern online recording technology (such as tamper-proof record and replay from Glassbox), allows for every digital session to be securely recorded, retrieved, and replayed exactly as it was seen by the customer – or indeed anyone visiting your website (even if they didn’t login or complete the session). Being able to prove compliance and remove any ambiguity could potentially save your business considerable potential fines and the risks to reputation that accompany it.

To illustrate just how these systems can help in the real world, here are some scenarios in which online recording technology can make a big difference to your business:

Archiving transaction data for years ahead

Keeping historical data is always a challenge, especially when it comes to easily retrieving specific data in the future. However, the benefit of using record and replay technology when data is recorded is that it is equally easy to store and retrieve it historically. If you record 100% of interactions you get a full picture of the view from the client but also from your systems, to get the most accurate and complete insights. Additionally, with the Glassbox’s solution for example, it is possible to compress 95% of this data, so you are only using 5% of the storage resources which keeping it all highly achievable and cost effective.

All customer web and mobile app sessions are stored exactly as they are experienced at the time of the transaction, for as many years as legislation (and company policy) dictate. This means compliance and regulation is fully adhered to, there is a 100% digital record (which is time stamped, tamper proof and encrypted for security), you can search using free-text and it is much faster to resolve disputes.

Call centre case resolution and complaint handling

Using a real-time session replay technology, such as Glassbox’s, makes it much faster and easier to retrieve sessions in the event of a customer query or complaint and is perfect for supporting call centres (by reducing Average Handling Time, improving First Call Resolution and improving CSAT scores). However, this technology can go further still, allowing your team to set up bespoke automatic alerts and instantly review sessions that have triggered them. This can be used as part of an investigation of suspected process failures or even for potential fraud.

By recording exactly what the customer is shown, it is possible to check that full Terms & Conditions were displayed/viewed and that specific web page content and layout was as intended. With accurate replay, tamper proof encrypted records, your business is protected against accusations of unfairness and alleged legislation breaches.

Retrieval of specific customer flows

Online record and replay technology also allows for examination of customer funnels. This means compliance or audit teams can look at the flow of customers through the website, automatically monitoring all sessions, identifying and addressing any session which does not conform to expected flow patterns.

With the right technology, the search options are almost limitless. You could search by customer age, geographical area, certain risk factors etc. Equally, the search criteria can be changed once an issue has become known to look at historic records using the same search criteria.

Specific customer sessions

The power of session replay technology means your team can locate and replay specific sessions, even if they were not completed. This could be used to experience sessions that flagged specific error codes and fix them for example.

At the same time, these reports could be coordinated with the customer care team who can contact all the effected customers to resolve any issues. If there is a wider issue that could involve the industry regulator it is also much easier to identify which customers would be involved and to ensure mitigation is swiftly put in place.

A full view for compliance and auditing

Undoubtedly record and replay systems such as those from Glassbox are invaluable in saving any financial sector business not only from the worry, but also the considerable resources required to manually monitor/search all online transactions.

Being able to retrieve digital sessions exactly as they were viewed gives a greater level of transparency which is invaluable in resolving disputes. It also reduces the risk of falling foul of MiFID II, MiFIR and similar international regulations, whilst speeding up the process – which is better for all the parties involved.

Author: Audelia Boker, Glassbox Digital

Author: Dylan Jones

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