Time and time again we hear of the importance of communication surveillance technology however for many firms it has become increasingly challenging to secure funds to for such changes. Implementing changes to surveillance technology is often put on the back burner in favour of multiple vendor solutions to fill surveillance gaps. Although adequate, this approach can be both cumbersome and costly, and doesn’t cover the communications channels which pose the greatest risk if left unmonitored.
Having a proactive approach to surveillance technology for 2023 will not only better place firms when it comes to dealing with regulatory requests, but also harvest many additional benefits.
Let’s delve into just some of these benefits and reasons why CFOs should budget for communication surveillance technology in 2023.
1. Regulators up the ante
With the SEC’s FY22-26 Strategic Plan indicating increased measures against firms that failing to comply, those who proactively monitor channels and conduct regular reviews of control systems, are better placed to respond to compliance requests at ease. This not only increases the efficiency of compliance teams and reduces the associated stress of audits, but it also enables traders to focus on their primary responsibility – trades!
2. Better business decisions
Beyond the obvious, communications surveillance technology enables firms to collect and store trade data in one place. With the right technology this data can be used to enhance business decisions across numerous departments and inform management and stakeholders of the benefits of a given plan of action.
Furthermore, with enhanced visibility over trade communications firms can analyse profit and loss spikes and assess missed opportunities through targeted reports gleaned from communication surveillance systems. Identifying key market makers and evaluating the quality of client-trader relationships further aids in informed business decision making.
3. Revenue Protection
We have seen time and time again of regulatory boards continue to increase in frequency and size. Failure to adequately comply with regulations have material impact on the bottom line. As the gatekeepers of company revenue, CFOs are well informed of the importance of safeguarding against the cost of non-compliance which has risen over 45% in the last 10 years.
With the appropriate communication surveillance, technology firms are not only regulator ready when it comes to regulatory requests but can also improve the reputation of the firm through proactive means of compliance. What’s more, firms have the opportunity to resolve disputed trades and customer complaints in a prompt fashion to improve customer relations, increase competitiveness and overall profitability.
Although implementation of communication surveillance technology comes at a price, the return on investment is substantial when looking at the bigger picture.
At VoxSmart we understand the budgetary pressures facing many institutions and strive to provide a leading communication surveillance solution to meet regulatory requests and aid in better business decisions to increase overall profitability.
Get in touch with us today to find out more about our Communication Surveillance technology!
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