Many businesses are likely to adopt a new cloud-based recording service, which is expected to revolutionise the telecommunications industry. Businesses are being ordered to keep phone recordings because it provides evidence and encourages compliance.
Australia’s 6000 mortgage brokers are the latest to be ordered to keep records of their conversations with customers after legislation was recently passed in Parliament.
What spurred the recent legislation?
The directive was in response to the 2019 final report by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
All brokers and salespeople in the financial industry will soon have to record their conversations with customers.
It could also be extended to financial advisers, real estate agents and accountants.
The Royal Commission received more than 10,000 complaints about financial services and much of the misconduct and illegal practices uncovered stemmed from a company’s pursuit of profit and an individual’s pursuit of gain.
People may have concerns about ‘big brother’ and a ‘nanny state’, but phone recordings protect and benefit both parties. We shouldn’t view call recordings with mistrust and fear if they are implemented for positive and productive purposes.
Why should business owners record phone conversations?
- It encourages accountability – knowing they are being recorded improves the professionalism and integrity of staff and customers.
- It improves communication – staff are able to listen to the conversation again and gain a better understanding of the customer’s needs.
- It enhances compliance – maintaining a database of recorded calls helps compliance with legal, industry and service-level guidelines.
- It improves efficiency – training and development feedback ensures staff are best meeting the needs of customers.
New phone recording technology provides insights and data about staff and customers. CallN is cloud-based so now you can record on mobile phones.
The algorithms provide information about customer engagement and experience – there is even a happiness rating. Managers will know if a staff member needs more training and will receive alerts if there is a compliance risk.
Mortgage brokers have until January next year to organise their recording devices. They will be required to act in the best interests of consumers and to prioritise consumers’ interests when providing credit assistance.
In addition to keeping records of conversations, mortgage brokers will have to provide information showing how they acted in the best interests of the consumer and the reasons why they recommended a particular product.
Last week the Australian Securities and Investments Commission (ASIC) published a guide for mortgage brokers and their duties.
ASIC Commissioner Sean Hughes said the reforms were important and timely reforms for the mortgage broking industry and for customers shopping for a loan.
Earlier this year, ASIC was granted the power to receive intercepted phone calls. The regulator can not tap phones but can receive intercepted information for investigations.
In Australia it is legal to record phone conversations if all parties consent.
Mark Horwood is the chief executive officer of Captivate Connect. He believes call waiting is an opportunity for businesses to engage with customers and he offers solutions to improve customer satisfaction. Captivate Connect’s world-first interactive on-hold messaging system was developed in Perth, Western Australia and will be available to companies around the world.