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THE FINAL FRONTIER OF COMPLIANCE: VOICE DATA

By: Tom Rimmer, Senior Executive at Speechmatics

 

Compliance is not without its complications – there is an ever-increasing burden of rules and regulations to adhere to, and businesses are continually having to adapt to the seemingly endless policy changes. Indeed, with the advent of GDPR in 2018 and the enormous number of fines handed out as a result (there were a total of €77 million in 2020 alone), there has never been a more important time to be compliant with regulations and stay up to date with any changes to them. Consequently, it has never been more vital that any data businesses produce and hold is used securely and effectively.

 

In adapting to GDPR, KYC, AML and other similar policies, businesses need to ensure  visibility of the data entering and leaving their organisations. This is no mean feat, as this can be incredibly difficult to judge, particularly if the data any given business is producing is unstructured or challenging to interpret. This issue is particularly pertinent when it comes to voice data – as a growing market, regulators and enterprises are having to react in real time to changes in order to comply and remain within the mutable laws.

 

Voice technology innovations, therefore, will play an increasingly important role in society as a result of the COVID-19 pandemic. With millions working from home – especially in businesses where  interactions are held over the phone – there is an increased risk of compliance and regulatory issues. The SEC recently issued a Risk Alert to highlight the requirements around supervision/monitoring of traders whilst working out of the office.

 

As data is now one of the world’s most precious commodities, and using it securely is critical to the longevity of all businesses, turning unstructured voice data into actionable insights is essential and will continue to grow in prominence. The evidence for this is clear: contact centres have recently experienced major increases in call volume, with some banks reporting a massive 400% increase in calls in the early stages of lockdown. This proves that voice remains the preferred method for interactions in the financial sector and businesses need to have tools in place to deal with this effectively and at the necessary scale.

 

There is a two-fold benefit to analysing voice data: financial services firms have actionable insights to improve customer experience, but can also remain compliant towards a web of regulations. Among these some apply to voice data specifically – take for example FCA COBS 11.8 which explicitly requires banks to have a system in place to record interactions across the business, in order to be transparent should a compliance related issue present itself. Nothing illustrates the importance of this more than the mis-selling of PPI – many major financial institutions are still dealing with the fallout from it and over £38 billion has been paid back to customers to date. As a result, PPI has become the most complained about product as yet.

 

In Speechmatics’ recent partnership with Veritone, we have sought to help businesses achieve a comfortable level of compliance while improving customer experience by integrating our world leading speech recognition technology with Veritione’s aiWARETM operating system. The aiWARETM software utilises a diverse ecosystem of machine learning models to transform audio, video, text, and other data sources into actionable intelligence. By incorporating Speechmatics’ technology into this service, voice data can be analysed in real time or after an interaction has occurred: its neural networks consider acoustics, languages,  dialects, multiple speakers, punctuation, capitalisation, context and implicit meanings. Businesses will reap the benefits of incorporating this kind of technology into their day-to-day processes.

 

In terms of the advantages – first, the integration will produce accessible and actionable data at scale, creating a real time impact on the bottom line of a business. Second, in decreasing operational costs, enterprises have the privilege of dedicating more time to ensuring customer satisfaction. Finally, voice technology permits businesses to have a more targeted approach to issues within their customer base: any glaring problems can be mitigated quickly before they snowball into incidents which may harm the financial or reputational position of an organisation.

 

Achieving effective and useful voice data analysis is the ‘final frontier’ in terms of businesses accomplishing a robust, 360 view of their data. Processes are streamlined through the automatic transcription of calls, allowing businesses to understand specific interactions and become aware of any areas of the business which are failing or require attention. Through achieving a holistic view of customers, businesses can, for example, become aware of a disgruntled customer without them explicitly saying so and thus act quickly to ensure they remain loyal to a given institution.

 

By automating risk management processes during this challenging time, businesses which experience high levels of interaction will be able to achieve effective governance of compliance issues and complete comprehensive due diligence across their entire workforce. The pandemic does not need to drag business processes down with it, and in an increasingly trying time for the economy, organisations which can push through without compromising their regulatory duties will likely thrive in the long term.

 

When it comes to wading through the quagmire of regulations, businesses are increasingly looking for solutions which will simultaneously permit them to remain compliant and streamline business processes. This is by no means a simple task, but by using technologies like automated voice analysis these headaches can be a thing of the past, or at the very least, produce actionable insights allowing the business to make the most of their data. By adopting tools which are specifically designed to attend to both these needs, businesses can breathe a sigh of relief when it comes to the enduring complications of regulatory compliance.

 

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Finance

THE OUTPERFORMER’S APPROACH TO FINANCIAL PROCESS AUTOMATION

By Michelle Trapani, Director of Product Marketing at Kofax

 

Achieving more with less is the mantra of our times. C-suite leaders demand greater efficiency. CFOs are looking to reduce costs. Customers and employees expect stellar experiences. The ability to outperform these expectations hinges on your financial operations, a vital area impacting every facet of your business.

For instance, if vital master data is incorrect, it’ll have a negative impact on service level quality, as well as the reputations of the finance and purchasing departments. Without accurate and timely visibility into processes, transparency is reduced, and it’s more difficult and time-consuming to manage compliance. The combination makes it harder to please executives, CFOs, customers, and vendors.

That’s why financial process automation is the key to operational efficiency and the overall success of your business. Even small- and medium-sized businesses are investing in process automation to optimise the financial processes within enterprise resource planning (ERP) systems, such as SAP.

For many, accounts payable is the first financial process to be automated. Like many other financial areas, Accounts Payable (AP) is mired in paper and consumed by highly manual tasks. For these reasons, once AP is automated, the benefits become quickly apparent, leading firms to immediately consider which other financial processes they can optimise. However, outperformers know the approach that yields the greatest return is automation of the entire purchase-to-pay process chain.

Why? Let’s consider what benefits can be gained from automating document-driven and transactional processes tied to an SAP ERP system – in AP and beyond.

 

Why a high-level of automation is an advantage

We don’t have to look far to see how end-to-end automation eliminates labour-intensive work, reduces costs, and increases process efficiency. Organisations with high levels of automation provide indisputable proof of the advantages of the outperformers’ approach.

According to research by Shared Services Link and Kofax, just 12 percent of organisations with high levels of automation manually process their invoices compared to 74 percent of those with low levels of automation. In addition, only 41 percent of highly automated companies experience problems with purchase orders, 24 percent have poor visibility into spend, and 8 percent fail to capture early payment discounts. By comparison, those with low-level automation report these same problems significantly more often: 68 percent, 23 percent, and 24 percent, respectively.

In an age when process automation has become table stakes, there are clear advantages for organisations that optimise processes across the business. “Best-in-class” firms – those with high levels of automation – don’t only become more competitive, they save time and resources as well.

Comparing “best-in-class” organisations to others illustrates the sharp differences. According to Ardent Partners, a “best-in-class” organisation processes 57.1 percent of all invoices “straight-through,” in just 3.9 days at an all-inclusive cost of $2.87 per invoice. By contrast, the gap with other organisations – those with low levels of automation – is wide: Only 16.1 percent of invoices are processed straight-through, and a single invoice takes 17.1 days to close and costs $15.38. Further, “best-in-class” organisations experience 81 percent lower invoice processing costs and 77 percent faster invoice processing cycle times.

 

Why ERP optimisation?

Another reason to follow the outperformers’ approach is to increase the return on investment of Enterprise Resource Planning (ERP) software. Many organisations haven’t fully leveraged their investments in ERP software, like SAP, giving them plenty of hidden opportunities to exploit.

“ERPs are not optimised for all the complex activities occurring today, such as matching printed or electronic invoices with supplier master data, purchase orders, shipping, tax and discount data,” says consultancy The Hackett Group. “Since it can be cost-prohibitive to replace a legacy ERP, companies often augment them instead with document management systems.”

When processes are paper-driven and manual, financial teams struggle to meet the volume-based performance requirements set by their CFOs. Meeting the high bar for raw numbers of invoices and payments processed is exceedingly difficult without automation. Think back to the pain points listed above. Every time the process is interrupted because the PO number is wrong, there’s an invoice exception or an early pay discount is missed, the process slows appreciably – or breaks down entirely.

One option is to use a certified add-on solution providing a single software platform to automate a series of processes directly within the ERP system. For SAP users, this type of solution offers more than integration with the ERP system; it provides the exact same look and feel as any other SAP transaction. It can be presented inside of the SAP GUI, providing non-SAP users an intuitive interface, and offering a real-time view of workloads, pending tasks, document inflow, ongoing transactions, and up-to-the-moment validation against SAP data. Solutions like this are proven to help users become more cost efficient, improve control over financial processes and shorten total processing times.

 

How to dominate your financial process

As the examples above show, expanding process improvement from AP to the entire purchase-to-pay process chain allows you dominate your financial processes in SAP, realise maximum efficiency and take your current ROI to the next level. Whether you’re just starting your automation journey or want to expand past AP, a full-scale strategy for end-to-end financial process automation will enable you to begin working like tomorrow, today.

 

About the author

In her role as Director of Product Marketing, Michelle Trapani delivers market positioning, strategic narratives and go-to-market strategies driving awareness, preference, and growth – bringing an increased level of insight, leadership, and overall execution discipline to Kofax’s growing business. Michelle was most recently with Cinch Connectivity Solutions where she reduced product launch times from eight months to eight-12 weeks. Previously, Michelle was with Adobe, Equinix, IBM, Infogix, iPass, Macrovision and Vision Solutions. Michelle earned a Bachelor of Arts degree at Illinois State University.

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Technology

WHY TECHNOLOGY IS KEY TO THE FUTURE OF AUDITING

By Piers Wilson, Head of Product Management at Huntsman Security

 

The Financial Reporting Council (FRC), which is responsible for corporate governance, reporting and auditing in the UK, has been consulting on the role of technology in audit processes. This highlights growing recognition for the fact that technology can assist audits, providing the ability to automate data gathering or assessment to increase quality, remove subjectivity and make the process more trustworthy and consistent. Both the Brydon review and the latest AQR thematic suggest a link between enhanced audit quality and the increasing use of technology. This goes beyond efficiency gains from process automation and relates, in part, to the larger volume of data and evidence which can be extracted from an audited entity and the sophistication of the tools available to interrogate it.

As one example, the PCAOB in the US has for a while advocated for the provision of audit evidence and reports to be timely (which implies computerisation and automation) to assure that risks are being managed, and for the extent of human interaction with evidence or source data to be reflected to ensure influence is minimised (the more that can be achieved programmatically and objectively the better).

However, technology may obscure the nature of analysis and decision making and create a barrier to fully transparent audits compared to more manual (yet labour intensive) processes. There is also a competition aspect between larger firms and smaller ones as regards access to technology:

Brydon raised concerns about the ability of challenger firms to keep pace with the Big Four firms in the deployment of innovative new technology.

The FRC consultation paper covers issues, and asks questions, in a number of areas. Examples include:

  • The use of AI and machine learning that collect or analyse evidence and due to the continual learning nature, their criteria for assessment may be difficult to establish or could change over time.
  • The data issues around greater access to networks and systems putting information at risk (e.g. under GDPR) or a reluctance for audited companies to allow audit firms to connect or install software/technologies into their live environments.
  • The nature of technology may mean it is harder for auditors to understand or establish the nature of data collection, analysis or decision making.
  • The ongoing need to train auditors on technologies that might be introduced, so they can utilise them in a way that generates trusted outputs.

Clearly these are real issues – for a process that aims to provide trustworthy, objective, transparent and repeatable outputs – any use of technology to speed up or improve the process must maintain these standards.

 

Audit technology solutions in cyber security

The cyber security realm has grown to quickly become a major area of risk and hence a focus for boards, technologists and auditors alike. The highly technical nature of threats and the adversarial nature of cybers attackers (who will actively try and find/exploit control failures) means that technology solutions that identify weaknesses and report on specific or overall vulnerabilities are becoming more entrenched in the assurance process within this discipline.

While the audit consultations and reports mentioned above cover the wider audit spectrum, similar challenges relate to cyber security as an inherently technology-focussed area of operation.

 

Benefits of speed

The gains from using technology to conduct data gathering, analysis and reporting are obvious – removing the need for human questionnaires, interviews, inspections and manual number crunching. Increasing the speed of the process has a number of benefits:

  • You can cover larger scopes or bigger samples (even avoid sampling all together)
  • You can conduct audit/assurance activities more often (weekly instead of annually)
  • You can scale your approach beyond one part of the business to encompass multiple business units or even third parties
  • You get answers more quickly – which for things that change continually (like patching status) means same day awareness rather than 3 weeks later

Benefits of flexibility

The ability to conduct audits across different sites or scopes, to specify different thresholds of risk for different domains, the ease of conducting audits at remote locations or on suppliers networks (especially during period of restricted travel) are ALL factors that can make technology a useful tool for the auditor.

 

Benefits of transparency

One part of the FRC’s perceived problem space is that of transparency, you can ask a human how they derived a result, and they can probably tell you, or at least show you the audit trail of correspondence, meeting notes or spreadsheet calculations. But can you do this with software or technology?

Certainly, the use of AI and machine learning makes this hard, the learning nature and often black box calculations are not easy to either understand, recalculate in a repeatable way or to document. The system learns, so is always changing, and hence the rationale that a decision might not always be the same.

In technologies that are geared towards delivering audit outcomes this is easier. First, if you collect and retain data, provide an easy interface to go from results to the underlying cases in the source data, it is possible to take a score/rating/risk and reveal the specifics of what led to it. Secondly, it is vital that the calculations are transparent, i.e. that the methods of calculating risks or the way results are scored is decipherable.

 

Benefits of consistency

This is one obvious gain from technology, the logic is pre-programmed in.  If you take two auditors and give them the same data sets or evidence case files they might draw different conclusions (possibly for valid reasons or due to them having different skill areas or experience), but the same algorithm operating on the same data will produce the same result every time.

Manual evidence gathering suffers a number of drawbacks – it relies on written notes, records of verbal conversations, email trails, spreadsheets, or questionnaire responses in different formats.  Retaining all this in a coherent way is difficult and going back through it even harder.

Using a consistent toolset and consistent data format means that if you need to go back to a data source from a particular network domain three months ago, you will have information that is readily available and readable.  And as stated above, if the source data and evidence is re-examined using a consistent solution, you will get the same calculations, decisions and results.

 

Benefits of systematically generated KPIs, cyber maturity measures and issues

The outputs of any audit process need to provide details of the issues found so that the specific or general cases of the failures can be investigated and resolved.  But for managers, operational teams and businesses, having a view of the KPIs for the security operations process is extremely useful.

Of course, following the “lines of defence” model, an internal or external “formal” audit might simply want the results and a level of trust in how they were calculated; however for operational management and ongoing continuous visibility, the need to derive performance statistics comes into its own.

It is worth noting that there are two dimensions to KPIs:   The assessment of the strength or configuration of a control or policy (how good is the control) and the extent or level of coverage (how widely is it enforced).

To give a view of the technical maturity of a defence you really need to combine these two factors together.  A weak control that is widely implemented or a strong control that provides only partial coverage are both causes for concern.

 

Benefits of separation of process stages

The final area where technology can help is in allowing the separation and distribution of the data gathering, analysis and reporting processes.  It is hard to take the data, evidence and meeting notes from someone else and analyse it. For one thing, is it trustworthy and reliable (in the case of third-party assurance questionnaires perhaps)? Then it is also hard to draw high-level conclusions about the analysis.

If technology allows the data gathering to be performed in a distributed way, say by local site administrators, third-party IT staff or non-expert users BUT in a trustworthy way, then the overhead of the audit process is much reduced. Instead of a team having to conduct multiple visits, interviews or data collection activities the toolset can be provided to the people nearest to the point of collection.

This allows the data analysis and interpretation to be performed centrally by the experts in a particular field or control area. So giving a non-expert user a way to collect and provide relevant and trustworthy audit evidence takes a large bite out of the resource overhead of conducting the audit, for both auditor and auditee.

It also means that a target organisation doesn’t have to manage the issue of allowing auditors to have access to networks, sites, data, accounts and systems to gather the audit evidence as this can be undertaken by existing administrators in the environment.

 

Making the right choice

Technology solutions in the audit process can clearly deliver benefits, however if they are too simplistic or aim to be too clever, they can simply move the problem of providing high levels of audit quality. A rapidly generated AI-based risk score is useful, but if it’s not possible to understand the calculation it is hard to either correct the control issues or trouble shoot the underlying process.

Where technology can assist the audit process, speed up data gathering and analysis, and streamline the generation of high- and low-level outputs it can be a boon.

Technology allows organisations to put trustworthy assurance into the hands of operations teams and managers, consultants and auditors alike to provide flexible, rapid and frequent views of control data and understanding of risk posture. If this can be done in a way that is cognisant of the risks and challenges as we have shown, then auditors and regulators such as the FRC can be satisfied.

 

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