What is the frequency of review of performance of banking correspondence

By Andrew Stevens Today’s hyper-connected consumers are using mobile technology to communicate in one way or the other all day long. So they expect the financial institutions they do business with to communicate with them on a personalized, relevant and contextual basis, just like their favorite brands do. And if consumer expectations are high now, what will their demands be five years from now? What foundations do you need to put in place today to be ready and able to engage with customers in 2024? We took this question to the street by surveying analysts, industry enterprises and banking and customer experience experts. They identified 12 pivotal customer communications trends to watch—many of which are owned or influenced by the marketing department: • Customer experience and digital transformation These are the links that bind together customer communications management (CCM) and customer experience management (CXM), so it’s no surprise that they will remain high on the priority list. This does not mean that the more traditional customer communications will go away. The need for bank statements and business correspondence will remain, but they will be embedded in digital applications and become part of an overall CX strategy that optimizes customer interaction for financial organizations. This means that more thought will need to be given to: • The consistency of communications (in tone of voice and look and feel, for instance) • How it fits into the overall customer j...

Regulatory Obligations Exchange Act Rules 17a-3 and 17a-4, as well as FINRA Rule Noteworthy Examination Findings FINRA has noted that some firms encountered challenges complying with supervision and recordkeeping requirements for various digital communications tools, technologies and services (collectively, “digital channels”). • Use of Prohibited Digital Channels – In some instances, firms prohibited the use of texting, messaging, social media or collaboration applications (e.g., WhatsApp, WeChat, Facebook, Slack or HipChat) for business-related communication with customers, but did not maintain a process to reasonably identify and respond to red flags that registered representatives were using impermissible personal digital channel communications in connection with firm business. Red flags could be detected through, for example, customer complaints, representatives’ email, outside business activity reviews or advertising reviews. • Prohibited Electronic Sales Seminars – Some registered representatives conducted “electronic sales seminars” in a chatroom or on digital channels that were not permitted by their firms and were outside of supervision or recordkeeping programs. Effective Practices Firms implemented a number of effective practices to manage registered representatives’ use of digital channels. • Establishing Comprehensive Governance – Some firms maintained governance processes to manage firm decisions and develop compliance processes for each new digital channel,...

Regulatory Obligations Exchange Act Rules 17a-3 and 17a-4, as well as FINRA Rule Noteworthy Examination Findings FINRA has noted that some firms encountered challenges complying with supervision and recordkeeping requirements for various digital communications tools, technologies and services (collectively, “digital channels”). • Use of Prohibited Digital Channels – In some instances, firms prohibited the use of texting, messaging, social media or collaboration applications (e.g., WhatsApp, WeChat, Facebook, Slack or HipChat) for business-related communication with customers, but did not maintain a process to reasonably identify and respond to red flags that registered representatives were using impermissible personal digital channel communications in connection with firm business. Red flags could be detected through, for example, customer complaints, representatives’ email, outside business activity reviews or advertising reviews. • Prohibited Electronic Sales Seminars – Some registered representatives conducted “electronic sales seminars” in a chatroom or on digital channels that were not permitted by their firms and were outside of supervision or recordkeeping programs. Effective Practices Firms implemented a number of effective practices to manage registered representatives’ use of digital channels. • Establishing Comprehensive Governance – Some firms maintained governance processes to manage firm decisions and develop compliance processes for each new digital channel,...

By Andrew Stevens Today’s hyper-connected consumers are using mobile technology to communicate in one way or the other all day long. So they expect the financial institutions they do business with to communicate with them on a personalized, relevant and contextual basis, just like their favorite brands do. And if consumer expectations are high now, what will their demands be five years from now? What foundations do you need to put in place today to be ready and able to engage with customers in 2024? We took this question to the street by surveying analysts, industry enterprises and banking and customer experience experts. They identified 12 pivotal customer communications trends to watch—many of which are owned or influenced by the marketing department: • Customer experience and digital transformation These are the links that bind together customer communications management (CCM) and customer experience management (CXM), so it’s no surprise that they will remain high on the priority list. This does not mean that the more traditional customer communications will go away. The need for bank statements and business correspondence will remain, but they will be embedded in digital applications and become part of an overall CX strategy that optimizes customer interaction for financial organizations. This means that more thought will need to be given to: • The consistency of communications (in tone of voice and look and feel, for instance) • How it fits into the overall customer j...