The world of business always moves towards efficiency, because that is what customers desire the most. No one likes to wait but waiting has long been a necessary step for many business transactions. Most businesses have re-engineered their work processes to increase the speed of service delivery. There are examples of these efficiencies being successful all around us. Look at Uber – customers don’t like it because of ‘ride sharing’. Customers like Uber because it is more convenient and efficient than traditional taxi services. Customers don’t need to call and explain their address to the taxi company, there is no haggling over the prices, and all the customer needs to do is press a button.
We have recently published a detailed blog post “Why Managing Compliance Manually is a Sisyphean Task”.
Banking is one of the few remaining sectors where customers are still made to wait. It takes time to open a bank account and transfer money into another account, and other bank processes can also take many days to complete. Customers do not like the waiting period, but they accept it because there is no alternative. All banks are slow, and banking is a service everyone needs, thus people wait.
Compliance is the Root of Banking Inefficiencies
The banking industry has the technology to operate at blazing fast speeds and instantly complete most business processes that currently take days to complete. The roadblock isn’t a lack of technology – the real roadblock is compliance. Compliance is critical for banks – they need to ensure that every transaction that goes through their bank complies with laws and regulations. Non-compliance means external audits, heavy penalties, and a major loss of reputation. Thus banks manually ensure compliance which results in customers needing to wait. This isn’t a cause of loss of business because currently all banks are slow.
Why don’t you read The perks of having a Compliance Management Solution which can help you understand why compliance automation is needed.
That will soon change. Compliance automation is getting better every day and banks all over the world are implementing compliance management systems. This means that soon some banks will be much faster than the other banks.
Compliance Automation Increases Customer Satisfaction
Once banks implement compliance automation, they will be able to deliver instant services. Imagine if all verification was automated. A bank transfer could happen instantly by automating the compliance process. Opening an account can become instant as well, but it will require some sort of verified identity system, something that needs to be developed by the government. The safe bet is that banking in the future will be nothing like what it is now. As banks move towards apps, we will see fewer and fewer retail banking outlets. However, we will still need to keep the banking network safe. That is why compliance automation will be a necessary component of increasing efficiency in the world of banking.
A few months back we published “The Future of Compliance Solutions” don’t forget to check this out to gain thought-provoking knowledge about the new compliance era.
Compliance automation isn’t just something for the future though – it is already making a huge difference in the world of banking. Compliance management systems with automation allow businesses to increase their levels of compliance while decreasing the costs of compliance. It augments the performance of compliance professionals by allowing them to achieve much more with fewer efforts. All administration related tasks are automated. Compliance monitoring is also slowly becoming completely automated. Computers are, as expected, much better at providing 24/7 monitoring than people. Thus banks can easily improve their compliance processes exponentially.
Where Should You Start With Compliance Technology?
If your bank is considering compliance technology implementations you have a lot of variety to choose from. There are many different types of compliance technology providers. Most are focusing on the GRC model. There are compliance solutions being provided by big-name legacy vendors, but these are gargantuan systems designed only for the biggest banks in the country. There are cloud-based compliance solutions which fits the need of small to medium enterprises better.
Check our in-depth blog post GRC Technology and Compliance Solutions in the Digital Age.
If your business is looking for compliance solutions to improve the compliance levels within your organization, make sure you look at what the Predict360 Compliance Management solution can do for your business. It has been endorsed by the American Bankers Association and trials are available so you can use the system within your organization to assess its true benefits. Get in touch with our team if you are interested in a trial.
About the Company
360factors, Inc. (Austin, TX) helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates regulations and requirements, policies and procedures management, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform based on artificial intelligence.