The Voice Recording Regulatory Landscape

The banking and insurance industries are subject to some of the world’s most stringent and prescriptive records retention requirements. And it is getting more challenging every day, particularly for voice data.

In each country, there are multiple levels of regulations; in the US, for example, you have individual states AND the Federal government. This is compounded for international companies. Further, there are also industry-specific privacy and recording standards. 

These varied regulations around the globe include SEC 17a-4, MiFiD II, Dodd-Frank, Sarbanes Oxley, GDPR, CCPA, FCA, FINRA, ASIC, FTC, PCI DSS, ECPA, and HIPAA. (More detail on these regulations can be found here.) 

All of the regulations listed above require the preservation of extensive voice recordings and stipulate that recordings be produced upon request. This means that organizations with vast troves of disparate voice recording formats in multiple languages must be able to search, retrieve, and produce data efficiently and cost-effectively.

And the cost of compliance is increasing. A 2020 survey of global institutions by Kroll showed that one-third of respondent banks spend more than 5% of revenue on compliance. A more recent North Row 2023 survey indicated that some institutions spend up to 18% of their revenue on compliance. 

Non-compliance is risky and very expensive. A 2022 study by Colligo found that:

  • The average cost of compliance is $5.47 million, while the average cost of non-compliance was $14.82 million annually.
  • The average cost of non-compliance has risen more than 45% in 10 years.
  • Organizations lose an average of $5.87 million in revenue due to a single non-compliance event.

Today, forward-thinking organizations are seeking out ways to reduce spending, create efficiencies and generate ROI from siloed data like voice recordings. Increasingly, they are turning to sophisticated AI solutions. The power of various forms of AI to rapidly analyze voice recording data has grown significantly over the last few years. This has enabled many organizations to use sophisticated new AI algorithms to not only meet their regulatory obligations, they can leverage these same capabilities to mine and extract value from the data.

So how do you get your voice data ready for all of this? XOVOX. XOVOX’s foundational voice recording conversion and normalization capabilities are indispensable starting points which give organizations the ability to implement the key precursor steps leveraging AI on voice recordings captured from legacy and disparate systems across an enterprise’s IVR and call center systems. Getting recordings into a standard format allows for easier metadata extraction and AI vectorization. Once AI-prompted recording retrieval and analysis is enabled, it allows for the rapid production of data for regulatory authorities. From there, it is a relatively easy process to use voice recording metadata for data classification, record categorization, sentiment, and other forms of analysis. This allows organizations to amortize compliance spend in ways that yield ROI, such as gauging customer satisfaction with new products, services, and processes which has a direct impact on revenue.  

In conclusion, the role of voice recordings in compliance is significant and the costs of noncompliance can be even more significant. XOVOX’s foundational voice recording expertise can help organizations increase the velocity with which their AI-based digital transformation initiatives take place. 

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