Wordwatch recently gained notable coverage in the FT’s Banking Risk & Regulation journal, following an article that focuses on the findings of our survey of regulated organisations and their approach to communications compliance.
Key Findings from Wordwatch Survey
Our research revealed that three-quarters of UK banks continue to rely on outdated legacy recording systems for storing employee communications. This reliance poses significant compliance risks, especially as regulatory bodies, such as the Financial Conduct Authority (FCA), intensify their scrutiny of record-keeping practices.
Compliance Risks Posed by Legacy Systems
In the article, the reporter highlighted that many banks struggle with multiple legacy systems, which are not only costly to maintain but also make it challenging to retrieve required communications promptly when regulators request them. These end-of-life systems lack the capability to manage modern communication methods like voice notes and video calls, creating further gaps in compliance.
Ultimately, as banks face increasing pressure from regulators there is a growing urgency for financial institutions to modernise their record-keeping processes.
Wordwatch’s findings underline the potential risks of non-compliance for the banking industry, including penalties, legal issues, and damage to reputation, urging banks to reassess their reliance on outdated technology.