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With the Nordic FinTech market booming, how can you be sure to meet your MiFID II compliance obligations?

MiFID II compliance obligations?

The Nordic Financial Technology (FinTech) sector is growing rapidly. In 2017 alone, more than €450 million was invested in Nordic fintech, according to the Nordic Tech List. The region is becoming known as one of the world’s leading cashless societies.

What’s been driving this growth is the success of companies such as electronic payments specialist Klarna and mobile payment provider iZettle, which in turn has given rise to new FinTech startups offering online lending, cryptocurrency handling, etc.

At the centre of this boom is Stockholm in Sweden, which is gaining a reputation as an up and coming European Fintech hub, having received €700 million worth of investment between 2012 and 2017, and becoming a global innovation centre in FinTech.

In 2016 alone, Stockholm received €92million in Fintech investments, and that’s with a population of just 1 million inhabitants, creating more than 6,000 jobs in the city. As a result, Sweden has the highest levels of Fintech investment per capita in Europe.

This success accelerates and inspires other innovators in the Nordic region, with success feeding back into entrepreneurship and funding initiatives. In the Nordic region, covering Sweden, Denmark, Finland and Norway, there are three important elements fuelling this innovation and growth. It is the high capacity infrastructure, the almost 100 per cent usage of smartphones and end-user digital competence.

Furthermore, while London is the unrivalled capital for FinTech in Europe, there are some concerns that the looming Brexit may result in some investors looking elsewhere. According to a recent study by the Nordic Tech List, 31 per cent of London-based employees are likely to be relocated out of the UK following Brexit.

Many industry commentators believe that Stockholm may find itself attracting further investment, enhancing its reputation as a European hub for FinTech companies.

Of course, this success has implications for new and emerging FinTech companies in the region that need to ensure that they meet their compliance obligations, notably MiFID II.

MiFID II requires that all companies record any customer communication, both fixed telephony and mobile calls, which is intended to result in a transaction. All customer communication needs to be securely stored and available for a minimum 5 years. That obligation spans all channels. So, regardless of whether communications take place over the phone, by email, SMS or any other enterprise communications application, any conversation that meets these requirements needs to be recorded, safely stored, and retrieved on request (for audit, dispute resolution, or compliance purposes, for example).

That can be a challenge for any size organisation. That’s why Touch Call Recording has been designed to capture all digital communications from more than 46 different channels, including landlines, PBXs, mobile phones, Skype for Business, Blomberg chat, Eikon Messenger, social media, and many others

Our multichannel services are used by enterprises of all sizes, from companies with a few employees to enterpises with many thousands of employees. The service can also be offered through our fixed and mobile communications partners. It´s a complete service that ensures that FinTech organisations can meet all their regulatory and compliance obligations.

Touch Call Recording Service can be tailored to meet industry-specific requirements, ensuring not only the safe, secure and reliable recording of voice and digital communications, but also compliance with local, national, international, and industry-specific legal and statutory requirements, including MiFID II and General Data Protection Regulation (GDPR).

Furthermore, we are a leading call recording specialist to FinTech companies in the Nordic region for over a decade. So, we understand the market and the challenges you face. In fact, Touch was the first company in Europe to offer Call Recording as a Service.

Touch has the expertise, heritage and robust solutions to help you meet all of your compliance obligations. So, contact us today and take advantage of our market-leading knowledge and expertise.

Written on 08 November 2018
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