Mobile call recording in banking: Security and MiFID II compliance

What if there were a way to comply with MiFID II when making or receiving a mobile call, without having to install an external app to record the conversation?

The arrival of artificial intelligence in mobile telephony opens up a brand-new opportunity to use these devices in full compliance with current regulations and, most importantly: enhancing the experience of both customers and sales teams.

Let’s take a closer look.

WHAT DOES THE CALL RECORDING REGULATION ACTUALLY REQUIRE?

All firms providing investment services operating in Spain must comply with regulations from the Spanish National Securities Market Commission (CNMV) and the Spanish Data Protection Agency (AEPD).

MIFID II: EVERY CONVERSATION LEADING TO A TRANSACTION MUST BE RECORDED

MiFID II requires firms to record any conversation that could lead to a financial decision, even if the transaction is never completed. This includes:

• Product or portfolio advice.
• Commercial information that may influence the client’s decision.
• Communications concerning terms, amendments or follow‑up of transactions already underway.

And it doesn’t matter whether that conversation happens via landline, mobile phone or video call: every channel counts.

GDPR AND LOPDGDD: CONSENT AND RECORD RETENTION

In addition, data protection regulations mandate that processing these recordings must meet key principles:

• Inform the user before recording begins (for example, via a pre‑call announcement).
• Store the recording securely for at least five years (or longer if required by the CNMV).
• Restrict and audit access to the recordings, ensuring traceability and confidentiality.

The challenge is meeting all of this without compromising the customer experience or infringing on employee rights, something that many traditional solutions fail to do effectively.

WHAT HAPPENS IF YOU FAIL TO COMPLY?

Failure to record calls when required can lead to serious consequences:

• Fines of up to €5 million from the CNMV.
• Penalties of up to €20 million or 4% of global turnover for GDPR breaches.
• Inability to defend the bank in complaints if there’s no verifiable record of the call.
• And, above all, a loss of trust, both internally and externally.

CURRENT CHALLENGES IN MOBILE CALL RECORDING

Given the severity of the fines and legal liabilities, financial institutions scrutinise closely which devices are used for these calls—and mobile phones raise technological hurdles:

1. IMPOSSIBILITY OF USING PERSONAL MOBILES

The most common practice is to provide company phones to staff. This allows control of the environment and ensures calls are properly recorded, but also incurs:

• High hardware and maintenance costs.
• Managing multiple lines and devices.
• Duplicating devices (personal vs professional).

2. LIMITATIONS OF EXTERNAL APPS

Some organisations have tried to tackle the issue using mobile recording apps, but these come with serious drawbacks:

• On iOS, recording apps are restricted by the operating system itself.
• On Android, functionality depends on OS version and granted permissions.
• They often fail to meet the required standards of integrity, secure storage and traceability mandated by MiFID II.
• They can be easily uninstalled or tampered with by the user.
• They rely on manual activation, so calls may go unrecorded if forgotten.

3. MANUAL ANNOUNCEMENTS

In some firms, the legal warning about call recording is issued manually by the adviser once the call has begun. This creates several issues:

• During the playback of the announcement, neither party can be heard.
• As the conversation has already started, some content may not be legally covered.
• This results in an artificial, non‑fluid experience for both customer and adviser.

This stems from a lack of a solution designed by experts who understand both regulatory requirements and real banking workflows.

4. INTERDEPARTMENTAL MISALIGNMENTS

Rolling out a solution that works organisation‑wide is far from straightforward. Each department has its own priorities:

• Compliance needs traceability, legality and audit capability.
• IT demands stability, security and seamless integration.
• Sales teams seek agility, mobility and a friction‑free experience.

REGULATORY COMPLIANCE WITH SMART MOBILE

To prevent recordings from being missed simply because the record button wasn’t pressed, one option increasingly adopted is the use of mobile lines with native call‑recording built‑in.

One of the very few (if not the only) providers in Spain offering this is Enreach with their Smart Mobile mobile lines, which allow all incoming and outgoing calls to be recorded without installing external apps or worrying about the device’s operating system.

The artificial intelligence is built directly into the SIM card, and once linked to the device, all corporate calls are automatically recorded and transcribed.

AN INTELLIGENT SIM THAT RECORDS WHAT YOU NEED

Each Smart Mobile SIM card includes AI that:

• Automatically detects professional calls.
• Automatically triggers recording without user intervention or external apps.
• Filters out and excludes personal calls, thus safeguarding employee privacy.

Everything is managed at SIM level, so it doesn’t matter whether the device is personal or company‑owned: the control lies with the SIM, not the phone.

INTEGRATING RECORDINGS INTO THE BANK’S CRM

The recordings from Smart Mobile are sent directly into the organisation’s corporate CRM for storage, review and traceability:

• Each recording is automatically linked to the client’s record within the CRM.
• An automatic title and summary are provided, enabling content review without playback.
• The recording is securely housed within the bank’s CRM environment, under its own data security and retention policies.

TOTAL TRACEABILITY OF CONVERSATIONS

All business-related calls made via mobile devices are recorded, categorised and automatically linked to the client’s CRM entry. This allows us to:

• Centralise all information in a single, familiar environment.
• Quickly retrieve any call, without jumping between different tools.
• Instantly review what was said and when.
• And if an audit or complaint arises, the compliance team can access everything needed seamlessly.

ADDITIONAL BENEFITS OF SMART MOBILE FOR BANKING

In addition to meeting industry regulations and working with any smartphone, Smart Mobile offers many extra advantages for financial organisations:

1. RECEIVE A TITLE AND SUMMARY FOR EVERY MOBILE CALL

At the end of each recorded call, the AI generates:

• A descriptive title summarising the conversation.
• An automatic summary that gives you an overview of the conversation without having to listen.

This saves time from listening to a full recording when you only need a general idea.

2. RECEIVE A LIST OF ACTIONS ARISING FROM THE CALL

The AI in Smart Mobile also recognises commitments made during the call and sends them directly to the manager’s email:

• Agreed actions with the client.
• Dates, products or terms mentioned.
• Pending tasks for follow‑up.

This prevents important details from slipping through, eliminates the manual note‑taking or CRM entry, and reduces the risk of errors or misunderstandings with the client.

3. MULTIPLY SALES TEAM EFFICIENCY

By automating the operational aspects of mobile call management, account managers:

• Spend less time on administrative tasks.
• Remember all the details of a conversation without needing to take notes.
• Follow up clients more effectively.

All of this happens without having to take notes, boot up a PC—ultimately, without disrupting their workflow.

HOW WE PROTECT EMPLOYEE PRIVACY

Whether users use a personal or company‑issued handset, it’s common to receive personal calls. That’s why Smart Mobile includes two safety filters to avoid recording or transcribing these calls:

1. GENERATIVE AI CONTEXTUAL FILTER

During the first few minutes of each call, our AI analyses the content to detect whether it’s related to banking activity.

• If no keywords linked to products, services, clients or financial processes appear, the call is not recorded, not transcribed and not logged in the CRM.

2. CUSTOM EXCLUSION LIST

Each user can provide a list of contacts or numbers to exclude (e.g. family, healthcare providers, etc.).

Calls from those numbers are automatically excluded from the recording system by default.

This avoids storing information unrelated to professional activity.

LEARN ABOUT SMART MOBILE FOR YOUR BANK

Our team of experts is always ready to listen and advise. Call us on 900 670 750, drop us a WhatsApp message, or fill in this form: