The use of messaging apps in financial services like many other industries is now widespread. WhatsApp, iMessage, WeChat, and Signal have become the default channels for client relationships, internal collaboration, and dealmaking.
The use of messaging apps in financial services like many other industries is now widespread. WhatsApp, iMessage, WeChat, and Signal have become the default channels for client relationships, internal collaboration, and dealmaking.
The challenge to financial institutions is, however, that this digital behavior has evolved faster than most governance and compliance frameworks could keep up. What started as a productivity boost has become an operational blind spot with highly valuable and many times regulated conversations occurring outside supervision or recordkeeping. In short, messaging is the backbone of modern financial communication.
Global Banking & Finance Review recently spoke with Dima Gutzeit, CEO at business communications platform provider LeapXpert to understand more about the risks of shadow messaging and how financial institutions can turn these risks into a strategic advantage.
WhatsApp remains the leading platform, followed closely by WeChat in Asia, iMessage in the U.S., and Telegram or Signal in Europe and the Middle East. Professionals use them for everything from deal making to client check-ins to trade confirmations, portfolio discussions, and internal coordination.
Officially, just a few firms are testing or deploying regulated versions of these apps through APIs or compliance-enabled wrappers. Unofficially, however, shadow usage persists because clients expect instant, familiar communication, and employees want to meet them where they are. The result is an uneven balance between convenience and compliance that organizations must pay attention to.
The risks are multidimensional: regulatory, reputational, security, operational, and legal. Unmonitored conversations can breach recordkeeping requirements, expose firms to data leakage, compromise company security perimeters, and create discoverability gaps during litigation.
Regulators now treat "off channel" communication as a systemic failure rather than a one-time violation. Beyond fines, the most significant consequence is loss of data ownership; clients, auditors, and investors question how seriously a firm governs its communications. Shadow messaging erodes the very transparency that financial markets depend on.
Compliance teams should focus on four key pillars: capture, governance, supervision, and retention. First, every message must be recorded in a tamper-proof format that complies with regulations such as SEC 17a-4, FINRA 4511, or MiFID II.
Second, supervision of workflows should integrate seamlessly with existing e-discovery tools and not operate in isolation. Third, retention and surveillance policies need to be consistent across all channels to ensure fair treatment during audits.
Equally important, each new channel should be launched with transparent communication between staff and clients, emphasizing that governance enhances service quality rather than restricting it.
Messaging apps blur the line between work and personal devices, causing data loss and security vulnerabilities. Attackers are increasingly using social engineering tools through trusted messaging networks, where the difference between "colleague" and "contact" can be subtle.
Secure, governed messaging systems are becoming as vital to cyber resilience as network firewalls or endpoint security.
Absolutely. Built-in AI can now automatically summarize, translate, or suggest responses based on message content, often processed through opaque third-party models. This raises concerns about data residency, confidentiality, and risks related to model training.
For financial institutions, the question isn't just about "where is the data stored?" but also "who is learning from it?" If sensitive client information is used to train external models, privacy boundaries break down. Institutions need clear AI governance policies for messaging, outlining what is allowed, what is retained, and what must stay off-limits.
LeapXpert acts as the bridge between how people want to communicate and how institutions are required to communicate. Our platform allows governed, compliant, and secure conversations across WhatsApp, iMessage, SMS, Signal and more, seamlessly integrated with enterprise communication ecosystems like Microsoft Teams, Slack, and governance frameworks like Microsoft Purview.
We don't impose behavior changes; instead, we embed governance into the channels people already use. By capturing, monitoring, and analyzing every message responsibly, we turn communication into a governed data asset.
Governance of communication channels turns regulatory liability into a competitive advantage. When every client's conversation is compliant and governed, institutions gain both operational confidence and data intelligence.
Instead of policing communication, governance empowers it, allowing teams to engage freely while upholding the highest standards of accountability. It's how forward-thinking banks are transforming compliance from a cost center into a trust builder.
Shadow messaging reflects how financial interactions happen today. Clients and advisors expect the same speed and informality in professional communications as they do in their personal digital lives. This creates an opportunity to turn that into governed intelligence.
Governed intelligence allows financial institutions to move from reactive oversight to proactive decision-making. Instead of treating messaging as a liability, they can utilize it as a source of truth, a feedback loop that connects governance, risk, and strategy.
Building on that foundation, Communication Data Intelligence (CDI) takes the next step. CDI doesn't stop at archiving; it structures unstructured communication data, integrates it across enterprise systems, and applies AI to surface compliance insights, behavioral trends, and client sentiment.
This is the essence of our vision at LeapXpert: to turn responsible communication into a catalyst for trust. It's about going beyond compliance to unlock the intelligence already embedded in every conversation while strengthening resilience, transparency, and confidence across the enterprise.
Shadow messaging refers to the use of unregulated messaging apps for business communications, which can lead to compliance and security risks for financial institutions.
Compliance in financial services involves adhering to laws, regulations, and guidelines to ensure that institutions operate within legal frameworks and maintain ethical standards.
Cybersecurity challenges refer to the risks and vulnerabilities that organizations face in protecting their digital assets and sensitive information from unauthorized access and attacks.
Data retention is the practice of storing data for a specified period to comply with legal and regulatory requirements, ensuring that information is available for audits and investigations.
AI governance refers to the frameworks and policies that guide the ethical use and management of artificial intelligence technologies, ensuring they align with organizational values and compliance standards.
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