Using Automation to Drive Efficiency and Value in Regulatory Compliance
Introduction
Ensuring regulatory compliance standards can be expensive, and this is especially true in banking, financial services and insurance industries (BFSI) where compliance spend has increased to unsustainable levels. The market for regulatory services has evolved significantly in recent years, bringing about massive structural changes in the way the industry operates. There are many companies competing for market share, which has led to innovation, automation and digitization across the entire spectrum of regulatory services.
Moreover, regulatory compliance is still, for many organizations, a highly manual process, and manual processes are rife with errors. Electronic processes are more efficient, but they still lack the ability to provide contextual information. Automation is the key to easing the pain of compliance, and truly effective automation can generate contextual information so systems can automatically apply it.
Table of Content
- Compliance Debt: A Vicious Cycle
- Reducing Compliance Debt
- Solving For The Bigger Picture
- Finding The Way Out
Compliance Debt: A Vicious Cycle
The recent accounting fraud scandals in the BFSI industry have shown that the approach of adding more people and controls has not been working, and that we need new solutions. Some of these frauds had been going on for years and were discovered by chance. As a result, new software solutions have been created to help prevent fraud and increase transparency of internal controls. For example, one of the frauds was discovered when the fraudster changed a single digit in a balance sheet account. The fraud was quickly detected by automation, which compares all numbers against the current spreadsheet. There are several fraud prevention software solutions available for this purpose.
It’s easy to get bogged down from the day-to-day. You have to look at the big picture or you’ll never get ahead. If you’re a BFSI leader looking for solutions within regulatory compliance, you have to get out of the box and get creative. Instead of adding more people, training, and layering, look at other solutions. Instead of monitoring, focus on a better solution. Also instead of searching for solutions, find a better, simpler solution. For a more efficient, streamlined process, contact an automation company that can help you get a better solution! They have a better solution for your company.
Reducing Compliance Debt
The implementation of a technology tool is a method to catch and fix errors produced by human labor. An example is how a team introduces a new technology tool or new process to catch and fix errors produced by human labor. As that debt grows, they invest more in people and technology, creating a vicious cycle of taking on more debt and not being able to pay it off — and this keeps accumulating. In order for this implementation to be successful, the business has to plan and monitor everything so it can pay down the debt while not accumulating more while addressing what is working and what is not.
There are only so many “lightweight” or “quick fix” solutions available in the marketplace when it comes to automation tools that can address almost any business process-related problem. While they may be helpful in the short term, they often don’t provide an end-to-end solution that can be fully integrated into existing business processes. Businesses that look beyond these solutions and engage with technologies that incorporate real expertise and tackle problems across the board are more likely to find success. They are more likely to find technologies that can help them address problems across the board, rather than piecemeal, in the long term.
Regulatory Compliance: Solving For The Bigger Picture on
One of the most tiring aspects of being a compliance officer is the amount of paperwork involved. For example, companies use a wide variety of tools to ensure companies are safe. They have to use other tools to ensure companies are compliant. The tools can be quite complicated. Then there’s all the other tools that they need to use to ensure the tools are working correctly. It’s very tiring to figure out what tools to use and how to keep them maintained.
For instance, regulatory compliance automation is one of the best ways to efficiently manage regulatory compliance in the workplace. Automation software helps by reducing the time it takes for compliance officers to make sure employees are following the rules. By using software solutions, one can easily detect when managers are not following the rules themselves.
Finding The Way Out
Financial institutions around the world are currently in a precarious position. After a decade of stagnant growth, a fear of digital investments has resulted in lagging performance across many sectors. That’s why it’s more important than ever for companies to invest in tools that can help them improve upon efficiency, mitigate risk, and address financial challenges. With the right automated tools, banks, financial services, and insurance companies can streamline their operations to create new opportunities, faster growth, and overall profitability.
Additionally, automation tools prove to be an efficient solution for the aforementioned concerns, in that it allows for expansion in the number of licensed professionals in the industry, while simultaneously resolving the cognitive overload issues, by enabling analysts to focus on the most in-depth tasks in their daily tasks.
Conclusion
The most effective way to reduce the cost of regulatory compliance is to focus on one or two areas that can bring the biggest impact. For example, if most of your manual work is done in the operations team, you can automate repetitive tasks with software to help reduce the human effort. Or you can automate the initial performance testing, setting up an automation cycle between testers, developers and operations. To learn more about how you can automate repetitive tasks to improve your regulatory compliance requirements, click here.
The Key Takeaway
Automation tools such as Integromat allow analysts to work smarter by achieving more than they could. Automation tools help analysts keep up with the ever-rising workloads. When employees are looking for ways to save time, they can turn to automation tools to help them do their jobs more effectively and efficiently. Today analyst teams are utilizing automation tools to address multiple work challenges, increase their productivity and focus on customer needs. Moreover, if you’re interested in improving efficiency and increasing profits for your business, you might want to take a look at Integromasters automation course. The course will help you to better understand the benefits of automation and how to apply these for your own business. We’ve worked with thousands of businesses of different sizes and we understand the unique challenges you’ll face. We’ll use our years of experience and expertise to create a solution that’s right for your company and your unique situation.