The need to keep pace with an ever changing communications landscape has transformed the compliance and archiving requirements. Highly-regulated industries are now mandated to capture and supervise virtually all digital business communications. This shift has extended compliance to cover a growing array of apps, including social media, collaboration, and conferencing apps, including Salesforce CRM, Slack, Microsoft Teams, and Zoom.

In conversations with our compliance and governance customers, we’ve learned how they’re adapting to expanded compliance requirements and rigorous enforcement actions from regulatory agencies such as the SEC, FINRA, and the FDA. In this climate, they’ve told us that using multiple point solutions creates business challenges to achieving efficient and cost-effective compliance supervision.

From working with our customers, we have seen three key areas of concern emerge for enterprises in their challenge to ensure compliance across digital communications: Adoption, Regulation, and Transformation.

ADOPTION

In many industries, particularly financial services, the need to adopt cloud and mobile communications has accelerated with hybrid work environments. And with the increased velocity, variety, and volume of these digital communications, comes the requirement to supervise multiple apps through a more flexible, scalable, and highly-automated approach to effectively manage risk.

For one hyper-growth mortgage company, its Mortgage Loan Officers (MLOs) needed to use social media to build credibility and drive sales in their local markets. The company also adopted Yammer to collaborate more effectively, and Zoom to drive marketing efforts during lockdowns. This rapid application adoption presented a newfound urgency to capture and supervise digital business communications against internal and external risks.

By deploying SafeGuard Cyber advanced compliance and governance to their MLOs’ social media and collaboration accounts, the firm is now automating compliance policy supervision of 12,000+ communications per month across 1,850 digital accounts. In doing so, they are ensuring compliance with key industry regulations such as RESPA, TIL, and FHA, while also against data loss and reducing enterprise-wide risk across communications in cloud-hosted apps.

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Success Story: Fast Growing Mortgage Company Reduces Cybersecurity & Compliance Risks.

REGULATION

Cryptocurrency traders and financial service providers have seen the value of mobile and cloud-based communication applications like Telegram and social media for client engagement increase profoundly. However, a lack of adequate supervision can result in serious compliance risk exposure. At the most basic level, archiving is required to comply with SEC rule 17A-4, but a host of other rules and policies apply as well.

Among the chief risks that have been introduced are new SEC reforms requiring that certain forms of social selling taking place in cloud-based applications be archived, and fears that financial advisors may share (intentionally or accidentally) customer PII or engage in conversations that violate regulatory compliance. Because of this, customers have approached us to ensure compliance for Telegram and other cloud-based apps for business.

We developed our solution to help financial services reduce these risks and ensure legal readiness by storing full conversations in a searchable archive with audit trails for every interaction. This is particularly important in light of recent reforms to the Investment Advisers Act (Rules 206(4)-1 and 206(4)-3) that place stringent requirements on maintaining a centralized digital archive of all social selling communications for all advisors.

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Success Story: Investment Firm Automates Compliance for Telegram
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TRANSFORMATION

With the ongoing migration to cloud and mobile communication applications, business won’t be winding back the clock to the times when corporate email was the only way to interact with customers and prospects. That means the future regulatory environment for digital communications is difficult to predict. What new regulations(s) will require archiving and easy to search audit trails for client interactions? What sort of fines will be levied against non-compliant organizations?

There is also the bottom-line critical compliance element of supervising all staff digital communications. Attempting to keep up with hundreds of thousands of advisor or field force communications by the week, day or even hour is not within capacity for many risk, compliance and legal teams.

To get a handle on ensuring compliance for hundreds of thousands of free text calls each week, a global pharmaceutical organization turned to SafeGuard Cyber to automate the compliance and regulatory review process of their field force communications for 7 languages across 9 countries. By doing so, they were able to save approximately $3 million per month in compliance supervision costs, while ensuring that their sellers were staying compliant with multiple regional regulatory frameworks.

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Success Story: Pharma Enterprise Saves over $30M

WHAT OUR CUSTOMERS LOOK FOR

In the ever-evolving landscape of compliance for digital communications, our customers have benefited from our compliance and governance solution. It is quick to deploy, and leverages transparent machine-learning for policy-based supervision of digital communications at scale. Being able to offer this capability with customizable policies and multilingual support has empowered our customers to reduce costs and drive transformational efficiencies.

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