Compliance management has always been a complicated task, but technology has helped make it easier. We are finally seeing the rise of Fintech (financial technology) and Regtech (Regulatory technology). These technologies are designed specifically for the financial industry and for dealing with regulations respectively. Compliance management comes under Fintech and is quickly becoming an essential technology for companies that want to innovate and succeed in today’s harsh and dynamic business environment. Let’s look at how this technology helps compliance professionals work smarter.
Centralized management of compliance
Compliance work is complicated. It involves many different documents, spreadsheets, emails, reports, and much more. Simply keeping track of everything is a crucial yet difficult part of compliance management. Compliance management systems manage all the documents, spreadsheets, discussions, and much more in one place.
This increases the efficiency of compliance work. Instead of having to manually maintain all the documents, spreadsheets, and reports, everything is visible within one system. There are no issues with locating information or sending people files – everything can be accessed from within the system. When things are managed manually it is very easy for something to be overlooked. Compliance professionals must comb through every document and file associated with compliance to ensure things are in order. Compliance management technology automates this task and does it much better than humanly possible.
Focusing on the compliance issues
Compliance experts are highly trained and educated people. These employees have a great financial background and on top of that they take extra classes, courses, certifications, and much more to be qualified for the work that they do. When they sit down to do compliance work, however, they face a major obstacle: administrative tasks. In order to ensure compliance, they must make sure that the compliance framework is managed.
The compliance framework is the system in place through which compliance is implemented. This includes the documents, the policies, the discussions, the emails, the reports, the audits, and every other compliance tool necessary for compliance professionals. This system requires a lot of upkeep. Thus, these experienced and qualified experts must first do these administrative tasks and then they will be able to focus on the actual compliance issues.
Compliance management systems change the game because they require no upkeep. They manage themselves – no one has to manually manage them – which means that compliance professionals do not need to waste their time in administrative tasks .They do not need to manage documents, they do not need to ensure everyone has the same version of every file, and they do not need to spend hours looking for the information that they need. Instead, the system brings them up to speed on the most pressing issues and they can start focusing on solving those issues.
Automatic conflict detection
The most important thing in compliance is to ensure that there are no conflicts. Looking for these conflicts manually is very inefficient. Even the smallest issue is detected very late through manual means. For instance, if some information is missing in the KYC form, the issue will be caught once the file is forwarded to someone else and they see that some vital information is missing. Then they need to get in touch with the customer and get the required information. If a compliance management system was in place the scenario would be different. The missing information will be detected by the system immediately, and the agent in charge will be able to get the info from the customer on the spot. Instead of the process taking days and requiring oversight, it happens in seconds.
Finding the right compliance solution for your organization
Compliance management systems come in many different sizes and types. If you want your organization to have a good ROI on the compliance system, it is important to ensure that you get the appropriate system for your organization. If you work at a multinational corporation with hundreds of offices you need to look at compliance systems that are designed for such workload. These systems are expensive and take a long time to implement due to their scope. If you work at a small to medium sized organization there are sleek and affordable systems which can be implemented in a day.
Getting the perfect system for your organization is the key to maximizing ROI as well as the competitiveness of your organization.