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7 Email Audits for Financial Services Organisations

7 Email Audits for Financial Services Organisations 1

By Sam Holding, Head of International, SparkPost.

Over the past few years, there’s been a lot of talk about disruption taking place in the world of Banking and Fintech, and the threat posed to those institutions that haven’t stepped up certain procedures or taken action to ensure they remain competitive. The rapid rise of Fintech meant that Banks have been forced to tackle deep cultural issues and make way for new approaches. We all know that whenever culture is involved, change is neither easy nor widely accepted. Still, the retail banking community has shown a remarkable level of flexibility and openness towards building services for a new customer profile – tech-savvy and always-on-the-move, demanding complete information in real time.

Ultimately, that’s what it’s all about: satisfying a new generation of customers that is accustomed to more for less. Customers can now choose whom they want to do business with and are well aware of the power this brings. They demand everything, along with the stability and reliability of a traditional Bank. Simply put, they want the best of both worlds.

Banking is without a doubt one of the world’s most regulated industries. It always has been. This traditional, thriving and ever-evolving sector is accustomed to complying with directives and regulations in almost every aspect of its operations, and customer-facing communication is no exception.

In email marketing, regulatory compliance is a requirement. But this doesn’t mean that the FCA is giving organisations a run for their money. The purpose is to protect markets, businesses and clients alike by establishing transparent rules of conduct. The Markets in Financial Instruments Directive is a case and point. The updated MiFID, introduced in 2018, provides a framework for promotional and customer engagement activities run by Financial Services organisations, whether traditional Banks or FinTechs, and requires a specific approach when it comes to the context and tone of communications.

With ever-changing email best practices and privacy regulations, and challenges piling up for businesses worldwide, email programmes can’t be a set-it-and-forget-it component of marketing strategies anymore. On the contrary, they need to demonstrate good returns – both direct, such as click through rate, and indirect, such as the difference in active subscribers.

A solid email programme consists not only of clever subject lines and enticing creative, but also the important parts that customers can’t see, like deep consideration and analysis of the parts of an organisation’s strategy. Every step of the way, aiming for continual optimisation and iteration is key to ensure the business maintains a healthy and highly efficient email strategy. This key objective can be achieved by performing regular audits.

An email audit is an assessment of a current email programme, with the scope to identify potential issues and optimise performance. Email audits can be perceived as a hassle, but actually they can help organisations stay ahead of the curve and gain significant advantages, such as improved compliance, higher customer satisfaction rate, measurable return on investment, and lower cost per email. Furthermore, they can help detect and resolve email delivery problems that can lead to serious losses, like lost market share.

There are 7 audits that every organisation needs to perform regularly, to keep their email programme in ship-shape as external variables change and may impact the effectiveness of their strategy.

Acquisition Audit: Signing up new customers or prospects to your newsletters is important to keep the communication going – but equally important is to evaluate if all the new customer experience performs as intended. Broken acquisition sources and processes are more common than you’d imagine, causing disappointment to potential new subscribers right at the point when they’re ready to give permission. Acquisition audits can help keep customers engaged and satisfied from the very beginning.

Unsubscribe Audit: It is crucial to regularly check and confirm that unsubscribe links and processes are working. Not just for protecting your brand’s reputation, but also for ensuring regulatory compliance.

Template Audit: A template audit will help you ensure that templates continue to render well across most environments, have functioning links, have branding, messaging and footer language that are still current. With customers being more mobile than ever, businesses should confirm that rendering works well across all popular environments, and on mobile devices in particular.

Data and Integration Audit: Data is a critical asset. It’s essential to keep an eye on the flow of information to and from your ESP to ensure that data is integrated properly and without latency, and that the integrity of your targeting is intact and without errors.

Privacy Audit: Checking that the privacy policy, privacy statements in email and the process and verbiage at the point of acquisition meet the legal and regulatory standards, is a necessary part of healthy email programmes.

MiFID II requires language that is “fair, clear and not misleading.” This of course is good practice for marketing communications generally but has lately become compulsory for Financial Services organisations in Europe. Take it one step further by ensuring that your privacy statements and forms are easy to understand and not in confusing legal jargon.

Deliverability Audit: Email plays a critical role in engaging and retaining customers. A deliverability audit will help you significantly improve reach and success of marketing programmes, ensuring that customers receive your communications on time.

Competitive Intelligence Audit: Email marketers want (and need) to benchmark their performance and activity against others. A competitive intelligence audit will help you see innovations happening in the inbox and where your organisation fits, in comparison – so you remain ahead of the competition.

The market is evolving rapidly and with the strict regulations now in place, following good practice and performing email audits will help Banks and FinTechs to operate within the regulatory guidelines without compromising the outcome of their marketing campaigns.

Business

The UnRefundables: Shoppers left out of pocket post-pandemic

The UnRefundables: Shoppers left out of pocket post-pandemic 2
  • One in ten shoppers (11%) left out of pocket or without refunds since pandemic
  • One in three shoppers (36%) actively avoiding purchasing due to refund worries
  • Clothes, hotel bookings, flights and electronics top list of UnRefundable items

New consumer research[1] commissioned by Visa has revealed a sharp increase in people unable to access returns or refunds for items bought during lockdown, with one in ten (11%) of those who requested money back still waiting for, or denied access, to a refund or voucher – a 215% increase from pre-pandemic times[2].

These items, coined “UnRefundables”, have left millions of concerned shoppers out of pocket. Of those that were able to access refunds for their items, one in five (20%) only received partial refunds, through cash or vouchers.

The consumer survey of 2,000 UK respondents and conducted by Opinium, revealed returns and refund requests have increased by 16% since the start of the pandemic, as more than two fifths (41%) of shoppers tried to return and refund items, services or events. Almost half (49%) of people who experienced refund issues didn’t get to use their purchase – receiving faulty or incorrect goods, items not arriving, products not being as advertised, being charged multiple times or billed the incorrect amount, or a purchase that wasn’t authorized.

UnRefundable fear putting pause on consumer spending

The research revealed that frustrations regarding refunds could have knock-on effects for British businesses, with over a third (36%) saying they have avoided making big purchases due to fears their money would not be returned and a quarter (28%) are more worried about securing a refund since the pandemic started.

Despite now being able to travel abroad and within the UK, there is increased concern amongst consumers making travel related purchases. In fact, one in three (34%) respondents say they are worried about a travel booking being refunded due to a local lockdown or “second peak” of the virus.

This follows a big increase in people trying to get refunds on flights and hotel bookings, with a fifth (22%) saying they have had more difficulties trying to get money back on cancelled holidays and events.

Why can’t Brits access refunds?

Over two fifths (43%) have been deterred from requesting a refund for an item, service or event at all – citing confusion about the returns process (15%), lack of time for the process (10%), the return window (also 10%), as well as no access to a printer for return labels (8%) as key pain points. Worryingly, one in 10 (10%) were not able to contact the company to pursue a refund.

The refund wait time has also increased notably during lockdown, with 12% saying it took over a month to get their money back compared to 7% who got a refund beforehand. Older people (aged 55+) are experiencing the biggest wait for refunds, with 5% waiting over a month before the pandemic, compared to 17% who have experienced this wait time since.

Visa has teamed up with personal finance expert Jasmine Birtles to allay consumers’ fears of being left out-of-pocket over the summer.

Jasmine Birtles commented: “If you bought something online that’s not up to scratch or hasn’t turned up, but the seller won’t budge or they’ve gone out of business, it can be tempting to chalk it up to a poor purchase decision or simply bad luck. With money a particular worry for many households currently, it’s important to research your refund options – you don’t always have to accept rescheduled dates or vouchers for equal or lesser amounts that leave you out of pocket and inconvenienced.

“If, after speaking to the retailer, you are still unable to get a refund, there are alternatives available to claw back those costs. You should contact your bank that issued your Visa card and ask them to pursue a chargeback claim, where they may be able to submit a claim to the retailer’s bank to request your money back. You can pursue a chargeback claim if you received only a partial refund, goods that weren’t as described, or have been offered alternative refund methods, including vouchers, points and rebooking. Your bank has 120 days from when the payment was made to make a chargeback claim, which is great news for people who might have missed the returns window. However, it’s worth noting that banks’ timeframes may vary and it’s best to file a dispute as early as possible to allow plenty of time. For travel, concert tickets or future-dated items, this time limit begins on the day of the event or holiday booking – providing extra reassurance to those worried about making holiday purchases.”

Jeni Mundy, UK & Ireland Managing Director, Visa, commented: “With consumer spending crucial to Britain’s economic recovery, it’s concerning to see that people are worried about securing refunds should they need to, and that in some cases this is even preventing them from making purchases. It’s important that people understand the many options open to them to get their money back should something go wrong. A good place to start is to get familiar with a seller’s cancellation, refund and exchange policy before you buy – this can often be easily found on their website. Another good way to put yourself in the driving seat when it comes to getting your money back is to pay using a Visa debit or credit card – this opens you up to the option of making a chargeback claim or provides credit card protection to ensure you aren’t left out of pocket.”

Visa’s UnRefundables: Top items being returned

  1. Clothes, shoes and accessories (31%)
  2. Hotel bookings (21%)
  3. Flights (20%)
  4. Theatre tickets (14%)
  5. Electronics (14%)
  6. Food and drink (10%)
  7. Home appliances (10%)
  8. Concerts (9%)
  9. Furniture & home furnishings (9%)
  10. Sporting goods (8%)
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Business

New Moneypenny Survey Shows How Office Life has Transformed in Post-lockdown Return to Work 

New Moneypenny Survey Shows How Office Life has Transformed in Post-lockdown Return to Work  3

A new survey by leading outsourced communications provider, Moneypenny, into the return to work post-Covid lockdown, shows that almost half (45%) of office workers surveyed are returning to work immediately, with a further 31% due back in the next one to four months, however 48% admit to having some concerns about COVID risks and a further 15% are not at all comfortable about going back to the office.

For some workers the return to work has been further delayed, with 5% not required to return to work until January 2021 at the earliest, and 18% having no specific date to return.

The North East and East Midlands have the most workers already back at work among those surveyed (53% in both regions) compared to the East of England which has the lowest proportion (41%).

New Moneypenny Survey Shows How Office Life has Transformed in Post-lockdown Return to Work  4

Navigating the new commute 

A reluctance to use public transport is shown in the fact that only 16% of those surveyed will use it to commute, while 66% will use their car. The East Midlands had the highest percentage of workers choosing to drive to work, with 81% saying they’ll commute by car, compared to 53% of those in London. Manchester had the lowest percentage of workers stating they’d be using public transport, with only 7% claiming it to be their commuting method of choice, while London had the most (29%).

Local Office Economy

In a blow to those hoping returning workers will boost the local economy, the survey showed more than 35% said that they won’t be visiting any local amenities when they go back to work.  There is a clear difference between the age groups however, as 51% of those aged 18-24 and 41% of those age 25-34 said they’d visit a nearby sandwich bar, compared with 21% of 45-54 and 11% of 55-64s who would do this.

Wearing masks in the office

The survey showed that 61% said their company has made masks compulsory, of which 28% require them to be worn at all times, in all areas, while 33% require them to be worn only in communal areas. A further 26% said their company has made masks voluntary and they plan to wear one, while 13% said they are voluntary but they won’t wear one.

When asked whether they minded having to wear a mask at work, 37% said they had no problems with the new rule, however, a further 36% said they would find it too much to do a whole day of work wearing a mask and 13% said they don’t mind wearing a mask at work short-term, but would be less happy if the policy was for the long-term. A disgruntled 9% don’t like having to wear a mask at work at all, as they feel it inhibits their freedom and human rights and they don’t like being told what to wear. A further 2% said they’ll refuse to return to work so long as masks are compulsory.

New Moneypenny Survey Shows How Office Life has Transformed in Post-lockdown Return to Work  5

In larger cities, masks are more likely to be compulsory at work, with 40% of those in London stating that their companies have already made them compulsory for all areas of the office, compared to just 14% of those surveyed in Yorkshire.

Co-workers and social distancing

Social distancing at work is clearly a concern, as 16% of those surveyed said that they don’t trust their colleagues to social distance in the office, while 37% trust some, but not all colleagues.  Scotland’s workers seem to be the least trusting, with 23% of workers stating they distrust team members.

Death of the tea round?

Some offices have banned the sharing of equipment completely (cited by 31% of those surveyed) while even without a ban, a further 35% said they won’t be sharing stationery and equipment with colleagues.

Even the tea rounds have been called into question. While 47% said they will make teas and coffees for their colleagues, 38% will only make tea for themselves and 14% said their companies have banned tea rounds.

Office workers in the East of England are most likely to only make drinks for themselves (51%), in contrast with London, where 25% will make drinks for themselves.

New Moneypenny Survey Shows How Office Life has Transformed in Post-lockdown Return to Work  6

 Commenting on the survey, Joanna Swash, CEO of Moneypenny said: ‘We were interested to see how many office workers are either already back at work or will be going back in the next few months.  While there is inevitably nervousness about Covid risks, it is positive to see the large proportion of people who are happy to work with their company in following the new health and safety rules and we’ve certainly been impressed by how innovative and agile our own clients have been in adapting to the new normal at work.’

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Business

Honest services wire fraud and the need for caution on multilateral development bank projects

Honest services wire fraud and the need for caution on multilateral development bank projects 7

By Joshua Ray, Legal Director, Rahman Ravelli www.rahmanravelli.co.uk

A recent court case extended US prosecutors’ extraterritorial reach for tackling corruption. Joshua Ray explains the implications for those accused of wrongdoing on multilateral development bank (MDB) projects

Imagine the following scenario: You are an executive for a Paraguayan construction firm that has just secured a contract with the Paraguayan government to build a hospital in that country.  The scale of the project means you will need to hire a number of subcontractors and, as you are in charge of choosing those subcontractors, you decide to seek bribes from those wanting the work. Such action is ill-advised and morally problematic. But as commercial bribery of this sort is not illegal in Paraguay, you may have breached your company’s code of conduct but you have not committed a crime under Paraguayan law.

Yet, unfortunately for you, the funds for the hospital were loaned to the Paraguayan government by the World Bank via a wire transfer from its Washington DC headquarters.  And under a recent decision from the US Second Circuit Court of Appeals, United States v. Napout, you may have just committed “honest services” wire fraud under US law—even though you never stepped foot out of Paraguay and did not break your home country’s laws. The Napout decision is important as it expands the extraterritorial reach of US prosecutors’ anti-corruption efforts.  For the reasons that I detail below, it has significant implications for foreign businesses, especially those engaged in projects sponsored by multilateral development banks (MDBs), whose financing comes from the US.

As they did after the 2008-2009 financial crisis, the World Bank and other MDBs are counteracting the current virus-induced global economic downturn with plans to deploy hundreds of billions of dollars in loans, primarily to governments in the developing world.  Much of this will be parcelled out to private sector entities to construct hospitals, testing facilities, sanitation systems and other important infrastructure. Such projects carry the risk of corrupt local officials and business leaders siphoning off such funds for themselves. MDBs are mandated by their charters to take all reasonable steps to combat fraud and corruption on MDB-financed projects.  They do not have law enforcement powers but they satisfy their mandate by building provisions into their contracts with direct borrowers (e.g. governments) that compel the borrowers to adhere to the highest ethical standards during the execution of MDB-financed projects.  MDB contracts require borrowers to give the banks freedom to audit any of their books and records that relate to MDB funds.

This right of an MDB being able to audit the books extends to any indirect beneficiaries of MDB funds for a project, such as suppliers, consultants and contractors. Such third parties must also agree to submit to the MDB’s jurisdiction to investigate and sanction them for corruption, fraud or other misconduct. Punishments imposed by MDBs can be harsh, and can include debarment; where a company is prevented from bidding on MDB-financed projects for a number of years or even indefinitely.  When an MDB uncovers misconduct through its own investigations it can – and often will – refer its findings to national law enforcement agencies; which can mean even more serious problems for those investigated.

The significance of the Napout decision regarding such situations is that it enables US prosecutors to pursue MDB-related bribery even when the purported wrongdoer is not subject to the US Foreign Corrupt Practices Act. Prosecutors can now pursue suspects for such bribery even if that suspect is not a US company, issuer or agent and has no other connection to the US.

The Second Circuit’s Decision

The appellants in Napout, Juan Angel Napout and Jose Maria Marin, were two former executives at football’s world governing body, FIFA. They had been convicted of using their positions to obtain millions of dollars in bribes relating to the sale of marketing and broadcasting rights. Napout had been president of Paraguay’s national football federation and Marin held the same post in the Brazilian football federation.

They both appealed on the basis that their convictions were the result of impermissible extraterritorial applications of the US honest services fraud wire statute.  The crux of their argument was summed up by Napout’s counsel, who argued that the US had no authority to police the relationship between a Paraguayan employee and his Paraguayan employer and an alleged scheme involving South Americans that took place almost entirely in South America.

The issue of whether the honest services fraud wire statute had been improperly extended to extraterritorial conduct was then reviewed by the Second Circuit. It concluded that as long as a wire fraud scheme involves a wire transmission from, into or through the US that is “essential” or more than “merely incidental” to the overall crime, the extraterritorial application of US law was permissible.

The appellants argued that honest services wire fraud was a materially different crime than regular wire fraud, as the focus of honest services wire fraud was not the use of the wires but the bad-faith breach of a fiduciary duty owed to the scheme’s victim. They argued that as the actual conduct underlying an honest services fraud scheme occurred abroad, it could not be prosecuted in the US solely because it used US wires.  But the Second Circuit disagreed: all that was required to uphold Napout’s and Marin’s convictions were facts showing that the use of US wires in their case (transfers of bribes in and out of US banks) was “essential” to their scheme. On that issue, the Court easily determined that the wires were essential: at least $2.4M of Marin’s payments were sent to his New York bank account and $2.5M of Napout’s were paid in US dollars generated by wire transfers originating in the US.

Implications for Participants in MDB-Financed Projects

The decision in Napout is relevant to MDB-financed projects as it clarifies the breadth of the honest services wire fraud statute and shows the ease with which US prosecutors can use it to target conduct that occurs almost entirely abroad.

The “honest services” variant of wire fraud is somewhat unique to US law and it is not universally recognised: a main piece of Napout’s defence, for instance, was that honest services bribery in a commercial context was not illegal where his conduct took place.  But in the Second Circuit’s view, this fact was largely irrelevant.  The Court ruled that the men had violated the statute by knowingly violating their duties to FIFA under the organisation’s code of ethics.

So, what does this mean in practice?  The Napout decision confirms that the reach of US anti-corruption efforts extends far beyond the bounds of the FCPA; which applies only to bribes paid to “foreign officials” by US issuers, domestic concerns or their agents.  Using an approach based on honest services fraud, all that US prosecutors need in order to have jurisdiction is for an “essential” US wire to be used in the scheme.  As several of the main MDBs are based in the US – including the World Bank and Inter-American Development Bank – a fraud or corruption scheme involving MDB money could easily make “essential” use of a US wire transmission; thus rendering the offenders subject to possible US prosecution.

This is an important point for companies and individuals participating in MDB-financed projects to keep in mind: even if commercial bribery is legal (or at least widely accepted) in the country where the project takes place, if the ultimate funding is flowing from the US then extreme caution must be taken to ensure that US wire fraud statutes are not violated.  This is particularly critical for projects taking place in developing countries where accepted business practices have not yet caught up with norms elsewhere.

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