by Richard Dutton, account director, Symatrix
With companies across the UK switching to remote working since the pandemic took hold, issues around the robustness and security of IT have come to the fore. There are few areas of the economy more cognisant of this than financial firms and few areas of business operations that need to be more closely guarded than payroll. For many organisations, the value passed through payroll makes it their largest monthly outgoing. Clearly, finance teams and directors are focused on ensuring money paid to employees is paid accurately and securely.
So what are the main threats to secure and accurate payroll processes when managed by a remote workforce and how can financial organisations mitigate these risks?
Scoping the Challenge
Those financial organisations that run on-premise applications have struggled with the lockdown most. With people sent home, the challenge has been how to access their payroll engine remotely in a secure and reliable fashion.
Having reliable, secure access to the payroll system via a virtual private network (VPN) is critically important for any business. Financial firms need a resilient, secure system in place to guard against hackers. But organisations may find that when they send employees home, their VPN is unable to manage. The business may have ‘sized’ the VPN for 350 people, so when 3,500 start trying to use it at the same time, it simply can’t cope. From the context of payroll, that presents a problem as it means the payroll team is unable to access their on-premise system, and the business risks unacceptable delays to payments or teams finding ‘work-around solutions’ to their connectivity challenges that have insufficient security built in.
Another key area of risk is around data security and confidentiality. Every organisation has a duty of care on data. They are governed by GDPR. Moreover, regulators like the Financial Conduct Authority (FCA) are applying strict guidelines and controls on the financial industry and financial organisations generally are far more risk-averse, in part because of the structure and the governance applied by the financial industry.
In this context, compliance with the ISO27001 standard can help to ensure best practice and high standards in payroll. However, many internal payroll departments are not covered by this standard. This puts the emphasis on the employees to ensure compliance and if they are working from home, it may be difficult to know whether the approach is fully secure. And that in turn could put those businesses at risk.
Finding a Solution
These are the challenges but what are the solutions? Organisations are hugely advantaged if they have already moved to cloud solutions. Where an organisation has moved to the cloud, they can typically access a cloud system that has a strong infrastructure of security and governance. If they have a cloud system in place they can avoid many of the security risks they might otherwise face.
Cloud is the enabler here then but the way businesses set their organisation up within the cloud to deliver great payroll services is even more important. Many organisations, after all, have cloud payroll engines but if they are fed by another HR system, the data will originate in that system and that can cause connectivity and efficiency problems. In contrast, a single cloud-based HR and payroll system removes the requirement for the transfer of data from HR to payroll and takes away the need for manual interventions.
You can see, all across the traditional payroll outsource sector, clients that have needed to create little cottage industries of administration to manage the impact of a HR application feeding a separate payroll application. These cottage industries are very expensive; add little true value and can result in businesses incurring multiple millions of pounds in costs.
Organisations will, of course, also need to have stringent processes in place to ensure the confidentiality and integrity of their data. For many, adherence to the ISO27001 standard will be the answer. ISO27001 can give finance firms reassurance that the way they operate with regard to security, data confidentiality and operational processes is excellent and robust. It is a mature and strong governance model able to give firms the comfort and confidence that their processes including payroll are being managed correctly.
Combining HR and payroll
In summary, cloud brings many benefits in this context but a single cloud HR and payroll system is better and more secure because it removes human intervention and therefore much of the risk to the process. If financial businesses don’t have one HR payroll solution and their whole HR pay benefits cycle is made up of data coming from multiple systems then that is a bigger risk to them.
The key point is that a single HR payroll system delivered in the cloud, is a driver for increased security better control and less risk. It is interesting to note that the current period of lockdown has also been one of the busiest for financial processes and activities. It will have been stressful for every payroll team but for financial services businesses operating in the cloud, with a joint HR and payroll system, that process is likely to have been just a little less concerning.
AI: CUSTOMER FACING EMPLOYEES’ BEST FRIEND IN THE FINANCIAL SERVICES INDUSTRY
By Ryan Lester, Senior Director, Customer Experience Technologies at LogMeIn
We’ve all heard the old saying “money talks.” Well when it comes to customer loyalty and retention, good customer experience talks much louder, with 30% of customers leaving a brand and never returning due to a bad experience.
The truth is, there are a lot of companies with similar products and services, but that doesn’t mean that differentiation is impossible. So, what’s the solution? For financial services, large and small, customer experience is becoming the key competitive differentiator and the best way to deliver an impactful experience is to empower customer-facing employees to do their best work. Artificial intelligence (AI) is enabling these employees to create remarkably better customer experiences, resulting in customer loyalty, advocacy, and overall growth.
For financial institutions that have been considering new strategies for improving the quality and efficiency of their customer experience, here are a few ways AI can enable them to deliver the “human factor” that good customer experience demands whilst ensuring customer facing employees can provide a more positive experience for customers.
Increase employee productivity
How much of employees’ time is spent searching for answers to questions? Do they ever have to put customers on hold or even step away to get additional help? AI helps provide front-line employees real-time guidance so they can spend less time looking for information and more time solving problems. An AI-powered chatbot, for example, can be listening in the background of a conversation helping point employees to the right data, solutions, and processes to resolve customer issues faster than ever before.
Deliver a consistent customer experience
When banking customers engage with their financial institutions, they measure the speed and accuracy of the service through two criteria. First, how quickly can the system access their account and deliver the correct information? Is it faster than a human could type it in and share it? And second, if they eventually do need to be connected to a live customer support agent, is their information captured and passed along accurately? AI technology takes those general queries off the customer support team’s plate, providing a quick, accurate, and effective response. If a query needs a more in-depth response, AI can hand it off to support staff to address.
Not only this but leveraging a centralised, AI-powered knowledge solution ensures every employee has access to the same, updated information, so no matter who the customer speaks to, they can be assured that employee responses are both consistent and accurate across the board.
Accelerating employee training and onboarding
Like any industry, employee turnover is inevitable and can be costly. But, not training new employees correctly or in a timely manner could be much more costly. When it comes to financial services there is a lot to learn, whether it is something simple like the process for checking an account balance to all the nuances associated with mortgage loans. AI can support on-the-job training by helping new employees answer questions confidently, correctly, and much quicker than they could before.
Improving employee satisfaction
Today’s banking customer has all kinds of new ideas about their banking experience. “The Amazon Effect” has successfully raised consumer expectations to the extent that a consistent, personal, and relevant experience is the new normal. As a customer, how many times have you been told “I’m sorry, I don’t know the answer?” Customers want solutions to their problems and employees want to be able to deliver those solutions as efficiently and effectively as possible. AI assisting in the background helps minimise those negative moments – making employees job easier, less stressful, and overall more enjoyable.
Identify knowledge gaps
Do you know all the questions employees are getting asked? Do you know what’s easily answered and what’s not? Real-time insights allow knowledge managers to keep up to date on frequently asked questions and gaps in current resources. This allows them to strategically improve or add content where needed.
Augmenting customer service
Whether talking with an AI chatbot or a personable customer service team member, the modern banking customer has high expectations for convenience, speed, and security. Which means that the technology you choose to deploy and how you deploy it is now just as important as who you hire and how you train them.
Today’s AI solutions won’t replace customer service agents or get in the way of the human factors that drive the customer experience. On the contrary, they augment it, allowing the business to do more without adding human resources. The higher the quality of a AI chatbot solution, the better it will be at taking the routine requests off the plate of customer service agents—giving them more time to provide a personalized and positive experience for customers.
TIPS TO PROTECT YOUR CASHFLOW DURING THE COVID-19 PANDEMIC
By Rita Cool, Certified Financial Planner at Alexander Forbes Financial Planning Consultants
The full impact of the COVID-19 pandemic is as yet unknown, but individuals have already begun to have their lives disrupted by the country’s economic shutdown, with retrenchments, salary cuts and forced unpaid leave making them take stock of their financial position.
The basic principles of financial planning are especially relevant at this time, but in the short term, cash flow is more important to many people.
To help safeguard you and your family’s financial security, here are some tips to follow to make sure you’re making your money work hard for you:
- Draw up a budget – this is especially relevant if you’re worried about possible retrenchment of yourself or your partner. This will help you know how much you need to cover your basic living expenses and where you can save money. Don’t only look at what you need to spend money on, but also when you think you will need that money. Perhaps you paid school fees upfront at the beginning of the year, or your car registration is only due again next year.
- Check your bank fees. Are you in the best structure for your needs? Are you paying for services that you never use? Consider moving banks to get a better deal.
- Banks have waived the Saswitch fee payable for withdrawing cash at another ATM other than your own bank, but if you’re doing this, be aware of when this switches back as you can end up paying almost double the bank fees.
- Did you know that you start paying interest immediately if you draw cash from a credit card and that you do not get three or six months’ interest free?
- Go through your house while you have extra time and identify potential items which you could sell, as this will free up cash.
- Where possible, pay cash for items as the interest rate on hire purchase items is very high and you pay around 20% more for those items than the sticker price. If you cannot afford the item and you don’t need it right now, wait.
- Look around for bargains online rather than driving around. There are some good sales on, and you can support businesses that need your help.
- At the same time, be aware of spending extra cash you could be saving towards your financial safety net. There are lots of deals available, so balance the need for the 70% off bikini or new laptop with being cautious about the future.
- Use store coupons and discount vouchers. The main food retailers have loyalty programme structures that can be tailored to your specific spending patterns. Make sure you claim point or vouchers but look out for monthly costs to belong to a rewards program. Ask yourself if your monthly savings validate the cost. Optimally a reward scheme shouldn’t cost you money.
- Check with your insurance company if your premium can be reduced because you’re driving less during lockdown.
- Check your current insurances. Do an insurance rebroke. Make sure you are covered for what you need and take things off the list that you do not have any more and add what you have bought since the last update. Make sure you are not under or over insured and that your premium is market related. The cheapest premium isn’t always the best so be aware of exclusions and excesses and make sure you can afford the excess if you need to claim.
- In most cases you can reduce your monthly insurance premiums by not having a cash pay-out in the future. If you want a pay-out, save the extra premium in an investment product, not a risk product.
- Be wary of consolidating debt. You might pay a lower interest rate but it might well be over a longer period so the total interest paid will be higher. If you have debt issues, set up a debt plan with dates and goals to reduce the debt little by little. Do not give up.
- Be aware that payment holidays are not a free loan, you still owe the money and you’re paying interest on it. Check with your service provider.
Remember that the pandemic will pass. Try not to panic as this may lead to rash financial decisions, which could have an impact on your finances later down the line.
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