In the past, investment banks and financial firms barred employees from using encrypted messaging services like WhatsApp and its rival Telegram Messenger. Internally-driven penalties to discourage flouting such rules could also result in high profile suspensions and dismissals. in today’s hyper-connected world, that stance has had to be adjusted with the introduction of compulsory message recording laws. Clients increasingly call the shots – legitimately – over how they want to engage and communicate. That doesn’t leave any option when it comes to whether or not to record deal-relevant communications over whatever medium.

Comms preferences strongly linked to loyalty

The ease and speed advantages of live synchronous messaging for deal instruction and execution are clear where milliseconds determine how much money is made or lost. Likewise, tools such as WhatsApp, WeChat, Signal and Telegram offer the ideal broadcast platform for flagging price fluctuations, stocks to watch, and similar one-to-many communications.

Pandemic-enforced home working and continuous lockdowns have taken their toll on business relationships. Video conferencing has helped fill the void, but we’ve all missed in-person face-to-face meetings. In a recent survey, 58% of advisors attributed the loss of clients to failure of meeting communication needs. Brand loyalty is on the wane, with Foresight Research uncovering a whopping 27% rise in churn rates within the banking sector.

The key takeout is customers are more likely than ever to defect to rivals if you cannot meet and beat their service expectations – and that includes the use of messaging apps.

Ignorance is no excuse
Most bright Generation Z workers have grown up digital natives. It seems like a marriage made in heaven. Yet, the reality is anything but. In the case of financial firms, all communications relating to deals and investment must be recorded and kept, even if they don’t result in a transaction.

So, unless you can track conversations over media like WhatsApp and WeChat, you can’t use them. And, as firms are discovering, there are no longer any grey areas. Regulators are clamping down worldwide and only too willing to issue substantial fines.

Gaining control of encrypted messages

What’s needed is a new approach; one that expedites the safe adoption of messaging apps without presenting IT and compliance executives with still more costs and complexity to manage. For example, replacing dodgy workarounds such as copying and pasting chat messages into emails (a risky practice that wastes time, is open to abuse and unlikely to stand up in court).

Now, there are purpose-built recording solutions on the market that are able to securely access encrypted messaging apps. All text conversations are immediately time-stamped and safely archived, making it impossible to delete or edit them. Surveillance alerts can be set to expose potential breaches and demonstrate even stronger compliance.

As an example, one of our clients, a large brokerage, has transformed productivity and customer service. They now handle around 30,000 messages a day, safely and compliantly. And they sleep soundly at night knowing that they can always prove it.

Don’t overlook calls
Many firms have no direct control over employees making calls via WhatsApp or WeChat. That’s often because their mobile device management systems can’t prevent users from doing so through IT policy enforcement. So, short of relying on employees’ goodwill, firms are effectively leaving themselves open to possible compliance breaches.

Messaging app recording solutions remove this worry too. They are also pretty versatile and can cover most workplace situations. For instance, it’s now possible to record on both corporate-owned and personal mobile devices, across Android and IOS operating systems, without encroaching on staff’s right to keep their personal, non-business communications private. And new solutions are being developed all the time for emerging platforms like Signal.

Kevin Nugent
Account Director
DoubleEdge Professional Services

To discover how DoubleEdge is helping customers to safely adopt messaging apps, call +44 (0)20 3137 8460 or get in touch at

Further Reading

White Paper: The Changing Face of Compliance

Meeting FCA, MiFID II, FINRA, GDPR and innumerable other regulations is nothing new for brokers, banks, hedge funds and other financial institutions. They’ve been doing it for years.

Now compliance controls cover a distributed remote workforce using diverse collaboration tools and messaging apps. And penalties are no longer confined to companies. UK regulators are coming after individuals under Senior Managers and Certification Regime (SM&CR) legislation.

Essential reading for board members, compliance leaders and IT managers, this white paper discusses the practical steps companies can take to ensure continuous compliance across their communications estate, including Microsoft Teams, WhatsApp, and other emerging channels.

Report: The 7 Ways To Record WhatsApp For Compliance

With 2 billion active users and over 100 billion messages being sent every day, WhatsApp is the most popular instant messaging app on the planet.

Factor in the increased usage sparked by global lockdowns and the growing trend towards remote working, and it’s easy to see why many organisations in heavily regulated sectors such as Banking, Finance, Energy, Commodities Trading and Insurance are scrambling to find a solution to capture these communications in order to gain a competitive edge while remaining compliant.

As it is encrypted end-to-end, WhatsApp cannot be recorded using traditional methods. But, if your organisation is looking for a way to compliantly capture and archive its employees’ new ways of working, this report outlines the seven ways in which this can be achieved.

The Gap in MIFID 2 Compliant Call Recording Solutions For Hosted Telephony Systems

Compliant hosted telephony – in the UK alone, millions of companies have already ditched their on-premise phone system to reap the many benefits of hosted telephony – reduced costs, lower admin resource requirements, future-proofing, scalability and greater resilience to name a few.

However, ensuring that calls are recorded and stored in line with MiFID II and other regulatory requirements continues to pose a challenge to many financial firms who would otherwise jump at the opportunity to move their communications to the cloud.

Out With The Tin, In With The Cloud – Replacing Traditional Call Recorders

For years, regulated financial organisations have had no option but to use physical call recording equipment in order to stay compliant. Many firms, however, have become frustrated with the high costs and poor service associated with certain traditional call recording providers.

With IP-based telephony set to completely replace legacy analogue and digital voice services in the UK by 2025 when BT withdraw the PSTN and ISDN network, and the explosive growth of cloud services in all areas of life, companies are becoming increasingly aware of the limitations of traditional “tin-based” solutions. Firms, now more than ever, are looking for better alternatives and asking themselves – how can I replace my call recorder?

Are There Any Suppliers of MiFID2 Compliant Hosted Telephony Solutions?

While most hosted telephony platforms have the capability to record calls, very few are able to do so in a manner that enables firms to fully comply with MiFID 2 legislation. Data integrity, auditability and UTC time stamping are key factors.

Regulated firms also need to ensure that all relevant communications, both internal and external, are captured and that recordings cannot be tampered with or deleted.

DoubleEdge, through our partnerships with some of the world’s leading technology and cloud communications providers, can cater to all of these requirements.

From a simple “point solution” with basic search functionality to replace a legacy call recorder and/or physical phone system, to a fully integrated platform to capture all forms of voice and e-comms, incorporating world class speech-to-text engines, advanced search features and real-time proactive alerts, we can help.

With our MiFID II compliant hosted telephony and call recording solutions, financial organisations can now gain all the benefits of cloud-based voice services while meeting or exceeding all of their regulatory obligations.

Contact us to learn more.