Financial services need to bank on secure instant messaging

In recent years data protection has become a priority for all organisations, but in the post-pandemic world it has never been more crucial for financial services to introduce robust data security as they implement their digital transformation programmes and migrate from legacy systems. With stories of high-profile cyber attacks appearing in the news increasingly regularly, financial firms are facing a new imperative to remain compliant. ‍

Google research shows that 53% of frontline workers use free and unapproved messaging apps such as WhatsApp for an efficient mode of communication with remote colleagues. However, 68% of them said they’d stop if given approved communication tools. 

In this article, our team investigates why financial services need to bank on secure instant messaging from a compliance, collaboration and workforce perspective. 

Data compliance 

Earlier this year we heard of a new warning for WhatsApp users over account suspension hack. In recent years ​​it’s architecture has fallen behind its rivals, missing key features such as multi-device access and fully encrypted backups. But the latest hack only requires access to your phone or email to take over the account and with around 6.4 billion fake emails sent every day it is too big of a risk for businesses. 

Coupled with the risk of sensitive information being stolen through a data breach or by a disgruntled employee poses a serious threat to financial service providers, ultimately affecting customer trust.  

In the case of financial services, all communications relating to deals and investments must be recorded, backed-up and secure (regardless of whether it resulted in a transaction). The inability to track conversations over WhatsApp and the increasing use of substantial fines by regulators means banks can’t afford to get their digital innovations wrong. 

With financial advisers now responsible for keeping an auditable trail of communications, they need to find solutions that meet the relevant regulations and provide a user experience that the employees can embrace.

Ease of communication

In today’s hyper-connected world, the consumer controls how they engage and communicate with business and 85 percent of smartphone users prefer mobile messages to emails or calls. 

It is estimated that  a user spends up to 30 minutes in a banking app each month versus up to three hours a day within mobile-messaging environments. The convenience and speed of real-time messaging for deal instruction and execution impact loyalty. In a recent survey, 58% of financial professionals attributed the loss of clients to a failure to meet communication needs. 

Digital generation

Generation Z represents about 30% of the total global population—and it's predicted that by 2025, Gen Z will make up about 27% of the workforce. Most Generation Z workers have grown up as digital natives and will expect digital technologies to be intrinsic to their careers. 

Instant messaging enables effective and timely collaboration with colleagues no matter the location, and improves communication with customers fitting in with their lifestyles. As a secure channel for data sharing, instant messaging results in improved productivity for both the customer and the financial company. 

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