The easiest way to bring about a change is to do it in a sustainable and systemic way.

If a bank is unsatisfied with its current compliance performance, then it will benefit from an in-depth analysis into performance gaps. Mistakes don’t happen simply because employees are not committed in the compliance department. The people working in the compliance department are all highly qualified individuals. What is much more probable is that the compliance framework of the organization – which includes not just the employees (in the compliance team and elsewhere), but also the tools and strategies in place for better compliance.

The problem with the lack of tools is that it limits what the compliance team can do and makes it almost impossible to take a systemic approach towards compliance management. Click To Tweet

The Lack of Compliance Tools in Mid-Sized Banking

Compliance management tools and solution are present in every large bank in the country but are rarer in mid-sized and small banks. Smaller banks have a much higher tendency to provide their employees with only basic office productivity tools to the compliance team. They use the same tools which every office uses – Microsoft Word, Microsoft Excel, Microsoft Outlook, and other similar applications – for a highly specialized job. Specialized and niche fields require specialized tools designed for the very purpose they are being used for; compliance teams thus need access to tools and solutions designed for their workflows.

The problem with the lack of tools is that it limits what the compliance team can do and makes it almost impossible to take a systemic approach towards compliance management. The issue is that when general-purpose software applications are used to manage compliance everything is being handled manually. This raises severe efficiency-related issues – as each process takes too much time – but, surprisingly, efficiency is not the real issue with using general-purpose solutions. The real problem is the lack of critical compliance functionality and features.

Going Beyond Efficiency

Once we look beyond efficiency, the true benefits of compliance technology become apparent. Efficiency is important, but it is not the only important metric. A good analogy would be comparing newer cars to older cars. Take a car made in 2020 and compare it with a car made in 1980. To keep the comparison fair, take a car that has the same engine and top speed. If we look at the speed of both vehicles, they will be very similar, but the newer car will be much more efficient. The same trip, at the same speed, will consume lesser fuel on the new car compared to the car made in 1980.

What most people realize is that they are missing much more than efficiency by using general-purpose solution. Now, on paper both vehicles can get a person to the same location in the same time albeit the new vehicle is more efficient. However, using both vehicles for some time will make the differences apparent. The new vehicle will have sensors that can help prevent accidents, automation that makes it easier to drive the vehicle over long distances, technology that makes the ride more comfortable, and better structural integrity which keeps the people within the car safe. All of these will be missing in the car made in the 80s. The same is true for compliance management solutions.

Compliance Technology Is A Paradigm Change, Not Just an Efficiency Boost

Modern compliance management solutions unify all compliance activities under one platform and then introduce A.I. powered technologies which help banks manage compliance in a more holistic manner. These solutions constantly monitor compliance levels across the organization, notifying the assigned stakeholders of any outliers or issues that need to be investigates. These solutions provide real-time metrics, which enable organizations to mitigate compliance issues proactively. Modern compliance solutions deliver better executive insights, which help the board make better decisions regarding the growth plans of the bank.

In other words – compliance technology isn’t just a few tools which can help your compliance team do some tasks faster. Compliance teams allow an organization to enhance compliance management at a systemic level by providing a single platform for all compliance related workflows while also introducing automation and intelligence. Instead of the whole compliance function relying on basic general-purpose software applications and hard-working employees, with modern tech the compliance function relies on the compliance platform being used by the organization.

This completely changes the way an organization approaches compliance management. Instead of the compliance team waiting for someone to report an issue or for an issue to be disclosed in a report, the team can instantly look into compliance activities across the organization. Real-time metrics also help the board monitor compliance performance and investigate any anomalies.

Is your bank looking for a solution that enables an intelligent and systematic approach towards compliance? Get in touch with our compliance experts for a demonstration of Predict360 compliance technology.