UK-based investment banks could be putting themselves and
investors at risk by allowing staff to use unregulated Instant
Messaging (IM) networks to exchange information, according to a
survey from Vanson Bourne Research.The survey, which questioned the IT
departments in 50 leading UK corporate and investment banks,
revealed that around half of companies admit that use of IM
networks are widespread within their organisations and that
important transactions are being made via free IM networks such as
AOL, MSN and Yahoo.
According to the survey, which was
commissioned by messaging specialist FaceTime Communications,
nearly half of companies are certain that employees are using IM.
One in 10 companies does not know for sure because IM is available
for free.
Despite the fact that 60% of institutions
admit that traders and brokers are the main users of IM, two out of
the top three IM networks used are public ones such as MSN and
Yahoo.
In addition, the survey said that 77% of
companies believe IM will replace the use of e-mail in some cases,
while half of businesses that have IM concede that business and
personal use are intertwined.
Originally, IM was used on a social basis by
web users but with most companies now providing always-on internet
access, personal and professional communications take place
together via e-mail, SMS and IM, said Kevin Withnall, director at
Vanson Bourne Research.
"Instant Messaging has developed into a
serious business application within the financial community, which
is now used alongside the phone and e-mail for front-office
communications," he said.
In the US, financial institutions are required
by law to audit and track all electronic messages, explicitly
including IM. Bodies such as the Securities and Exchange
Commission, National Association of Securities Dealers, and
legislation such as the Sarbanes-Oxley Act are all increasing the
regulatory burden on financial institutions.
In the UK, the Financial Services Association
is less prescriptive, but companies need to be sure IM is not being
used as a conduit to break other regulations or policies.
"Monitoring of e-mail is now corporate policy
for most institutions, but regulatory pressure does not yet seem to
have extended to IM conversations that happen on free, public
networks," said Withnall.
Last October, information services giant
Reuters launched its own IM service in an attempt to regulate the
use of the technology within its business.