Key Takeaways
- Regulators are penalizing off-channel messaging. Enforcement actions against the five largest US investment banks total around $1 billion in fines for failing to monitor and preserve employees’ SMS and WhatsApp messages.
- Banning WhatsApp isn’t realistic. Clients want to use WhatsApp and SMS. Firms need sanctioned, compliant access instead.
- Movius Multiline: It covers WhatsApp, SMS, and mobile voice, and it separates business conversations from personal ones.
- Theta Lake adds capture, archiving, and supervision. The two platforms are connected through a jointly developed API integration. Theta Lake captures Movius WhatsApp messages, WhatsApp Voice, SMS, and Mobile Voice, including images, emojis, audio, and video.
- Records meet SEC recordkeeping requirements. Content is stored in SEC Rule 17a-4 WORM-compliant archive or in the customer’s archive of choice.
Why are regulators cracking down on WhatsApp and SMS in financial services?
With a series of enforcement actions totaling about $1 billion in fines from the five biggest US investment banks, the SEC has made it clear there will be significant financial consequences if firms don’t start policing the use of communications channels, specifically the increasing use of SMS text and messaging apps, like WhatsApp, in their workforce. The seismic shift towards heavier enforcement comes after a warning was issued by the SEC that firms “need to be actively thinking about and addressing the many compliance issues raised by the increased use of personal devices, new communications channels, and other technological developments like ephemeral apps.”
Clearly, regulatory bodies have served notice – and the race is on to not only comply, but balance productivity gains with increasing regulatory scrutiny. How can firms avoid the worst-case scenario of fines and sanctions (and resultant bad PR) while also not disrupting their mobile workforce and, lastly, minimize complexity in their mobile/IT infrastructure?
Why can’t firms just ban WhatsApp and text messaging?
Clients increasingly expect to reach their advisors on WhatsApp and SMS, and employees mix personal and work use on a single device. A ban would cost productivity and put firms at a competitive disadvantage.
Hybrid and “work from anywhere” models are here to stay. Like many industries, financial services firms have been looking at ways to more effectively engage and support their clients on their preferred channels, which include SMS and WhatsApp. The real-time communication has enabled increased productivity and richer interactions but has come at a cost. Those firms are now grappling with how to provide WhatsApp and related services in a controlled manner and balanced with a strong focus on compliance, security, and corporate IT standards. Users have also made it clear that they will alternate the personal use of technology with their work efforts. The days of carrying two different mobile devices are in the rearview mirror.
What does a compliant mobile messaging solution need?
A compliant solution needs four things:
- It must capture every mobile channel employees use, including WhatsApp messages, WhatsApp Voice, SMS, and mobile voice.
- It must preserve the full context of each conversation.
- It must archive everything in one central location.
- It must separate business communications from personal ones.
Legacy tools that capture only some of these channels, or that strip away conversational context, create new gaps and complexity. The solution also has to deploy efficiently across every user at the administrator level.
How does the Movius and Theta Lake partnership work?
Movius gives employees a sanctioned business line for WhatsApp, SMS, and voice. Theta Lake captures, archives, and supervises those communications for compliance.
The Movius Multiline Platform is designed to eliminate communication data silos, support compliant communication, and connect critical workflows for better client experiences. It enables sanctioned WhatsApp use, records WhatsApp conversations, and separates business conversations from personal ones.
Theta Lake’s integration with Movius is jointly developed and API-driven. That means fast deployment and seamless interaction between the two platforms. Read the official partnership announcement.
What does Theta Lake capture and supervise for Movius customers?
Theta Lake provides turnkey archiving, compliance, surveillance, and data security for all Movius mobile channels, including: WhatsApp messages, WhatsApp Voice, SMS, and Mobile Voice.
Specifically for mobile messaging platforms like Movius, Theta Lake:
- Unifies audio and electronic communications capture and supervision to eliminate gaps in context and disconnects across disparate voice and electronic communication compliance teams
- Captures all messages, images, emojis, audio, video, and other rich media
- Provides a fully native display of messages in full context, making it easier for compliance personnel to review and assess a case, investigation, or policy violation
- Applies Theta Lake’s patented AI and ML-based risk detection technology across messages, images, documents, files, voice, and more for comprehensive data security and communication surveillance insights
- Securely preserves content within Theta Lake’s 17a-4 WORM-compliant archive or in a customer’s archive of choice
Movius plus Theta Lake is the ideal solution for balancing users’ demands for WhatsApp while also having the necessary controls in place for regulatory compliance and security requirements. If you would like to see a demo, we’d invite you to contact us here.
Frequently Asked Questions
What are off-channel communications?
Off-channel communications are business conversations held on channels a firm doesn’t monitor or archive, such as personal text messages or WhatsApp. Regulators treat them as recordkeeping violations.
Can financial firms use WhatsApp compliantly?
Yes. Using Movius with Theta Lake, firms can enable sanctioned WhatsApp use while capturing, archiving, and supervising every business conversation.
Does the solution separate personal and business messages?
Yes. Movius separates business conversations from personal ones, so only business communications are captured.
Is the archive SEC 17a-4 compliant?
Yes. Theta Lake stores content in SEC Rule 17a-4 WORM-compliant archive. Customers can also send content to their archive of choice.
