US financial firms face rising USD $232,000 costs for mobile compliance
Senior leaders in the US financial services industry are prioritising the avoidance of mobile compliance fines amidst rising costs and operational challenges, according to new research from unified communications supervision platform MirrorWeb.
The study, conducted with 200 senior compliance decision makers, found that 85% of respondents are concerned about fines for non-compliant mobile communications, and over half (51%) described this issue as a "top priority" for their organisations.
Financial costs mounting
The findings highlight that compliance with mobile communication regulations has become a measurable financial drain. Industry respondents reported losing an average of USD $232,000 annually due to inefficiencies in mobile compliance. For smaller teams - those with fewer than 250 people - the average figure is over USD $68,000 per year.
These losses coincide with the shift to mobile devices as the main tool for business communications in the sector. Regulatory bodies, including the SEC and FINRA, have increased their scrutiny on firms' ability to archive and monitor these communications, underscoring long-term trends toward tighter compliance obligations.
Compliance workload and challenges
The research, carried out by Sapio Research, also found that compliance teams spend a significant amount of time managing mobile communication obligations. On average, teams dedicate 308 hours annually - or nearly six hours per week - to this work.
One of the key operational difficulties cited was the need to manage multiple devices and applications. Over a third (34%) of senior leaders named this as the biggest challenge they face in the current landscape of mobile communications compliance.
Role of AI under consideration
Nearly all organisations (97%) indicated they would consider adopting artificial intelligence-based solutions for managing mobile compliance, and 72% have already begun exploring such options. However, the study pointed to a significant gap between interest in AI and confidence in its capabilities: only 41% of respondents said they are "very confident" in AI's ability to identify non-compliant messages.
The research revealed concerns around the explainability of AI-driven compliance processes and highlighted a demand for greater transparency and more comprehensive training. Respondents expressed the need for solutions that not only optimise efficiency but also allow firms to demonstrate how AI decisions are made.
Balancing privacy and regulation
The survey also indicated increased concern among employees about the potential overlap between personal and business communications. Some 84% of employees reported being worried that their personal conversations might be captured alongside professional messages, raising privacy issues in the workplace.
Maintaining regulatory compliance while safeguarding employee privacy was identified as an urgent need across the sector. Solutions that can accurately distinguish between business-related and personal communications are seen as critical to ensuring employees' personal data is protected from organisational archiving processes.
False positives and inefficiencies
Inefficiencies due to false positives - messages incorrectly flagged as non-compliant - are contributing significantly to compliance costs. Teams reported an average annual cost of USD $232,000 arising from this issue.
Joshua Yulish, President and CRO at MirrorWeb said: "Mobile communication is transforming business, and with it, the line between our personal and professional lives is disappearing. This has made the duties of compliance teams more challenging than ever. Our research shows that there's a clear need for solutions that balance compliance needs with employee privacy, and help reduce the costly flood of false positives across the industry."
The full whitepaper from MirrorWeb details these findings, as well as additional insights from financial services leaders on mobile compliance and the evolving role of AI in regulatory processes.
