Complying with Dodd-Frank

Financial Contact Centers Face the Realities of Complying with Dodd-Frank

Back in 2010, President Obama signed landmark legislation designed to protect the rights of the customer and usher in a new age of accountability for the financial services industry. Not surprisingly, the Dodd-Frank Wall Street Reform and Consumer Protection Act threw Wall Street and the financial industry through a loop. The new regulations, which emphasize greater transparency and strict adherence to organizational processes, are forcing financial organizations to make significant operational changes and implement a variety of enabling technologies.

 

Republican hopeful, Mitt Romney, promised to “repeal and replace” Dodd-Frank upon his election. Now, with the recent re-election of President Obama, any hopes the industry may have harbored for the departure of Dodd-Frank have now been dashed. In an article in the November 2012 issue of the Wall Street Journal, “Battle Plan Shifts on Dodd-Frank”, these dashed hopes are anticipated to drive a new wave of lawsuits against the Securities and Exchange Commission and the Commodity Futures Trading Commission as business groups battle to reduce the financial ramifications and overall impact of the legislation. However, although some small wins can be expected, for the most part, the regulations will likely remain in place.

New Dodd-Frank Call recording Requirements

Unfortunately, contact centers of all sizes and in multiple industries that are involved in swap activities – including financial services, manufacturing, oil and insurance – are struggling to maintain compliance with Dodd-Frank. Among the legislation’s many demands, new call recording and record-keeping requirements have been received with extreme anxiety and reluctance. In addition to being required to react quickly and appropriately to changing processes, financial institutions must also respond immediately to audits or complaints and provide guaranteed, foolproof evidence retention. The deadline for financial services companies to comply with Dodd-Frank call recording record-keeping requirements has been extended from November, 2012 to March, 2013. Organizations that fail to comply may face stiff penalties and fines.

 

In short, the legislation outlines the requirement to record all oral communications relating to pre-execution swap trade information, including communications that ultimately lead to a related cash or forward transaction. Additionally, financial organizations are required to maintain all such records in a manner that is searchable by transaction and counterparty. These call recordings must be maintained in searchable format for a period of one year. Organizations are also required to timestamp pre-execution and execution trade information using Coordinated Universal Time and to maintain swap records at their principal place of business or other designated principal office.

 

Despite the seemingly daunting nature of these very tough regulations, new technologies and solutions are proving to be incredibly effective in maintaining compliance and meeting the challenges of the Dodd-Frank Act. Fortunately leading companies have developed analytics-driven call recording solutions specifically to meet the needs of organizations faced with complex, evolving compliance and liability issues. Advanced call recording solutions are able to record all channels of communication used in today’s ever-growing mobile business environment – including hard-wired, soft and mobile phones, trading turrets, hoot ‘n holler systems, email and chat – to ensure the capture of every interaction between the contact center or trading floor and customer. These solutions provide also flexibility for storage and retention and also meet PCI-DSS compliance regulations by masking and muting segments of interactions containing sensitive data.

Using Analytics to Detect Non-Compliant Activities

Analytics can quickly identify and address Dodd- Frank compliance issues. Analytics-enhanced call recording solutions have the ability to automatically tag pertinent searchable data from trader applications and conversations – such as Customer ID, Customer/ Portfolio Type, Order Amount, Order Type, Stock Symbol, Share Price, disclosure and consent information, and more – to recordings for easy access to important recorded interactions and are being used to meet Dodd-Frank requirements for speedy search and detailed record-keeping. These solutions offer a proactive alerting function, which detects and proactively notifies management of non-compliant events within interactions. Detailed Audit Trail reporting is achieved with interactive drill-through reports and heat maps, which can easily identify who accessed any recording in the system and when it was accessed for playback, export or any other critical event.

Closing Knowledge Gaps with E-Learning and Coaching

While these remarkable technologies can resolve many of the problems faced by financial services organizations in the wake of Dodd-Frank, the human factor remains a huge issue. When striving to maintain compliance, employees are under a great deal of pressure to perform at maximum capacity within the tight constraints of various regulatory requirements. They’re trying to cope while learning to use new applications and being bombarded with constant updates on new processes and procedures. E-Learning and Coaching tools have proven to be a huge advantage in the quest for speedy implementation of new policies and the correction of non-compliant behaviors. If non-compliance is being caused by gaps in employee knowledge or skills, personalized Coaching will automatically be assigned to the trader and notifications and alerts can be sent to their managers on the particular topic causing the issue.

 

As many compliance and operations officers prepare to meet the stringent demands of Dodd-Frank legislation, they can rest easier knowing that the latest call recording and workforce optimization software innovations have been designed to help them more easily overcome these challenges. Affordable and incredibly easy to implement and adopt, these state-of-the-art solutions can be implemented quickly and easily, providing some much needed peace of mind in a time of deep industry unrest and trepidation.

Information provided by Call Recording Industry Professionals.

Speech analytics for the Financial   Industry

 

 

  OK, Dodd-Frank told the CFTC that you need speech analytics and you need to record everyone (sales, back office, the floor, cell phones, HR).  They want to be able to audit you to know if you are influencing sales or even influencing the market.  And you know this is going to be very expensive.  Here is an idea.  Don’t expand your Nicelog recorder to everyone in your company; the channel license cost would kill you, let alone the cost of Nicelog speech analytics software, additional Nicelog system licenses, Nicelog installation and Nicelog annual maintenance.  You should continue to use the Nicelog recorder recording your floor traders.  Traders use the recorder every day, it works fine and they don’t want any changes.  Let’s put in a large recording system that covers all the necessary phones, including all the calls that go to the Nicelog.  Add speech analytics to all recordings.  This new recorder is not used on a daily basis for order confirmation but it is there when needed and is a back-up to the Nicelog.  This new recording system with speech analytics will be much less expensive than a Nicelog along with their speech analytics application.  The speech analytics is absolutely state of the art (Avaya is behind this product).   It is amazingly easy to use, in fact, there are so many applications in your industry that are of great importance, now or in the future, you can actually use speech analytics for real in-house value.  You can analyze the company activities by HR, sales, marketing, accounting looking for phrases in conversations with customers, prospects, and regulators that can help or hinder your operations.  You can anticipate a compliance review.  You can learn why some sales people are better than the others.  You can use it for employee evaluation based on certain phrases that are found to be important.  This can work all the time in the background analyzing every call and provide reports on a schedule.   Bottom line, you are compliant at a much lower cost than you ever imagined with a very powerful system that can, indeed, add value to your operations.  I suggest it should pay for itself and not really cost you a fortune.

The cost of speech analytics depends on the number of phones to record and they type of phones (analog, digital or VoIP).  Speech analytics can actually be added to your existing recorder, too.  Contact VLR Communications  to discuss your speech analytics needs.

Call Recording in the Cloud

Can we actually have cloud Recording?

First let’s look at cloud based services in general.  Vendors offer their solutions by hosting their application on their own servers which are then available and accessible by the customer at any time. The popularity of cloud-based applications has been growing exponentially in recent years because companies are quickly realizing the benefits of SaaS deployments.
 

So what is it about cloud-based applications that make it attractive to customers? With a typical pay-as-you-go subscription model and web-based accessibility, the risk when purchasing and implementing cloud-based applications is greatly reduced. Plus, hosted applications lessen the burden on IT infrastructure and personnel resources because the maintenance of the applications are managed by the vendor. Just install the applications and go.  But the benefits go much deeper than that. For instance, most hosted applications offer:
 

·         Low start-up costs – no capital expense and no software purchase

·         Fast and easy implementations

·         No upgrade costs to keep the software up to date - updates are made automatically by the vendor

·         Predictable software costs

·         Fast ROI

·         Flexibility to increase or decrease the number of users whenever you need to

·         Security - A vendor’s business is predicated on providing a secure, reliable data environment.

·         No hidden costs such as additional hardware purchases, annual maintenance fees, or internal support personnel

·         Seamless product updates and enhancements

In order to offer cloud based recording, the system must record the phone conversations at the customer’s location and store the recordings.  Then at a convenient time the call recordings are sent to a cloud based recording server.  The remote recording server has features for access, sorting, and playback; playback via the cloud.  When sending the recording files, which can be quite large, the local recording interface must wait until the network is available, at maybe 2 AM.  Thus the recordings may not be available immediately after the call is completed and cannot be live monitored.  However, this may be achievable in the future with a VoIP phone system.

Here are several factors that may prevent the evolution to cloud recording.

·         The hardware on site is required to interface to VoIP, legacy digital and analog phone systems and to temporarily  store the calls

 

·         Robust network availability

·         Delay in sending the files to the cloud server results in calls that may not be live monitored or be unavailable until the next day

·         Maintenance and support required for on-site hardware

·         The cost for the local hardware in addition to the cost for the remote services

The benefits of cloud based recording

·         Low cost to start recording

·         Easily cancelable

What is being done today to advance towards cloud recording?  For one, Oaisys is offering cloud recording with many of the benefits along with the weaknesses.  The system is installed, only for VoIP recording and is accessible only after the calls are transmitted to the cloud based server which is scheduled for early in the morning.  Oaisys offers a monthly cost and an annual contract option.

You can design your own local server with Intelligent Recording’s USB interface.  This might be practical for several locations reporting to a home based recording server, via the cloud.  However, this scenario does require a PC at each location; a PC that stores the calls and can be accessed from the web.

Passing your inbound calls through a service is currently available.  Here, your telephone number rings at the remote site.  The remote site forwards the call to you and records the call.  This service may be expensive; however it is flexible with low startup cost but at a higher overall cost.  This scenario doesn’t work to record outbound calls.

VoIP calls could conceivably be recorded and sent to the cloud based recording server without a local archive server.  However, it would require a robust network and available high speed web access.  There are no software or services for remote VoIP recording at this time.
 

There are cases where there are separate locations that are recording calls that need to be monitored and stored at a central location.  This requires robust recording servers at each location and access to the web.  In this case, Revcord, for example, provides software so the calls can be searched and played at that central location via the cloud. 

In summary, cloud based recording doesn’t seem to be practical at this time due to the need to store the calls at the local site.  While a robust network and fat web access are necessary for recording VoIP calls and for faster access to the calls over the cloud, the traffic congestion over the network may make this unpractical.  Alternative systems such as inbound call recording will not fulfill your overall needs of inbound and outbound call recording.  Since even a recording server is needed at the local site to temporally store cloud based recordings the local recording server continues to be the most practical solution at this time. 

Can I record HD Voice?

HD Voice is high-definition audio over VoIP phone service.  All digital recorders record standard VoIP and HD Voice.  The benefit of HD Voice is noticeably better-quality sound which improves recordings.  While on the phone, agents don’t have to ask callers to repeat their words.  HD Voice also significantly improves word search and speech recognition accuracy along with improved phone system’s interactive voice response (IVR) performance and improved conference call productivity.  Normally, calls are transmitted on a frequency of 300 Hz to 3.4 kHz.  HD voice expands the frequency range to between 50 Hz on the low end and 7 KHz and up on the high end. Revcord supports G.722 adaptive multi-rate wide band for certain Cisco/Ploycom phones.

 

 

 

How to choose: Revcord Tower or Rack Mount Recorder

Each Revcord recorder has a long list of features including web based browser, unlimited access without costly licenses with free screen recording and call evaluation software.  Revcord offers two models with different hardware configuration (model CYA and MCS) however the software does not change. These models are available for connection to analog and digital telephone systems. Revcord offers systems with analog capture cards, digital capture cards, and with combinations of analog and digital capture cards. These capture cards connect to your telephone system, two-way radios or other audio inputs by use of amphenol cables. The Revcord system allows the combination of analog and digital channels in the particular channel configuration you require.

Tower

The model CYA was specifically designed and priced where price is of primary consideration and redundancy is not a critical requirement. The model CYA/CM features a tower chassis, 500 GB hard drive, combo DVD drive, and the option of backup to a USB hard drive or Network Attached Storage (NAS).

Rack

The model MCS features dual hot swappable 500 GB hard drives with Raid 1 (mirrored recording on the hard drives) and dual hot swappable power supplies for added redundancy in a Rack Mount Chassis. This model is intended for applications in which voice recording is critical and where even the remote possibility of one call being missed could have unacceptable consequences.

Conclusion

While both Revcord recorders are very low in cost, for the budget application the tower is a great buy at about 40% less the rack version.  For more robust applications and a neat rack mount installation, the rack mount version is preferred. It is recommended that both recorders be placed on a UPS (uninterruptable power supply) to prevent power loss and power surges which can damage computer based equipment.  A UPS will allow recorders to continue recording during a brief power failure.   Find full specifications with installation and operation manuals along with discount pricing and support at vlrcommunictions.com and for a great demo go to revcord.com.

How to choose: Total Recall Recorder Desktop or Rack Mount

Total Recall TRL desktop recorders provide secure voice logging for up to 24 phone lines, phone instruments, two-way radios, and/or other sources of conversations.  The TRR rack mount version is available with 4 and up to 72 channels.   Total Recall Recorders have a built-in color display and hard drive for access to the most recent 60,000 conversation hours, built-in CD/DVD recorder to archive 180 hours on a CD or 1,000 hours on a DVD, and simple navigation keys. They also provide LAN/WAN and dial-up access to recordings and live monitoring.

Desktop

Inexpensive and easy to use, the desktop recorder is practical where recordings are important for training and support of disputes.  The latest version of the desktop recorder accepts 4, 8 and 12 channel cards with a total capacity of 24 channels.  The recorder is easy to install and can be mounted anywhere you have access to power, local area network, and your phone and radio connections.

Rack

The rack mount version came out after the desktop recorder was well accepted in the marketplace.  The rack mount version has a much larger channel capacity and while just as easy to install the rack mount version is more robust by limiting access to the input, power and network connections.  An option for the rack mount version is an additional hot swappable power supply for added redundancy.  There is a optional portable housing for the rack mount version so it doesn’t actually have to be mounted in a cabinet.  Expansion is available with 4, 8 or 12 channel cards.

Conclusion

Both recorders should be just as dependable unless the additional power supply is added to the rack mount version.  If your requirements are below 24 channels and you don’t want to put the recorder in a secure cabinet, then the desktop is quite acceptable.  It is recommended that both recorders be placed on a UPS (uninterruptable power supply) to prevent power loss and power surges which can damage computer based equipment.   A UPS will allow recorders to continue recording during a brief power failure.   Find full specifications with installation and operation manuals along with discount pricing and support at vlrcommunictions.com.

MELCO vs. DEES Service Observing

Also known as a Teletrainer, a Service Observing unit is designed to allow a supervisor to listen to telephone representatives.  A unit can monitor 30 phones and can be expanded to 90 phones.  Service observing is a simple and effective way to train, assist and evaluate employees.  Melco was a pioneer in service observing beginning in the 1970’s.   In the 1980’s the product was acquired by Thomas & Betts.  When component parts became unavailable in the 1990’s T&B simply dropped the Melco product line.

The units bridge the analog telephones and allow a single supervisor to select and listen in to any connected telephone.  With digital phones and VoIP phones, the service observing units are connected to the phone with a handset tap.  With the handset tap, the supervisor’s talk assist may only talk to the local person, not the party being called.  Also the tone alert is only heard by the local telephone.  A wire pair from each handset tap must be connected to the service observing unit, thus more wires throughout the office.  The handset adapter is also subject to misuse.  The EDAC, electronic digital to analog converter, was developed to bridge the digital phone pairs (not for VoIP phones) and provide the service observing unit the audio for monitoring.  The EDAC provides a more dependable interface, however using an EDAC does not allow talk assist or tone alert.

Fortunately, Dees manufactures an exact replacement for the Melco KMT-330AT 30 line unit and the KMX-333B 30 line expansion unit.   Dee’s product is called the CM-30 and the expansion unit is the CMX-300.  Dees uses a small power supply model 368 in place of the large regulated Melco MPS-120 power supply.  The Dees unit uses modern technology and is well received by the call center market.  The CM-30 will replace a Melco KMT-330AT with the same connectors with no changes in the input or output connections.  However, the optional talk assist and optional tone alert is addressed differently.  These options can be added later as the Melco wire plan does not prevent the system to disturb operations when a Dees unit is reconnected.  The VLR Communications web site has operation and installation manuals for Melco and Dees products.

VLR Communications suggests customers using Melco and Dees service observing units consider replacing them with a voice logging recorder.  Recorders were much more expensive when service observing was introduced.  At their own desks, multiple supervisors may monitor calls, search for recordings, and even email recordings, all this over the LAN.  A recording replaces notes and hearsay long after the observed call is completed.  Recordings can be used to train new employees, document issues, and recordings can be shared with the call center’s customer as proof of performance.  Recorders can interface with analog, digital, T1 and VoIP phone systems.  Existing EDAC units can be used with analog input recorders.