Whether it’s PSD2, Strong Customer Authentication, 5AMLD, GDPR or the rise of crypto, regulatory change and volume is increasing at speed. Since the financial crisis, governments, central banks and regulators have heaped on regulation to protect consumers, increase transparency and introduce competition and innovation.
Of course with increased regulations comes opportunity, but it also creates a significant challenge for compliance and legal teams who need to manage it. How do you continue to keep pace with the volume and velocity of regulatory change in an efficient and cost-effective way?
“Inefficiencies in processes put pressure on the highly skilled in-house resources required to complete compliance related tasks.”
A recent survey estimated that 4% of a financial firm’s revenue is spent on compliance, and this is set to increase to 10% by 2022. Dealing with financial regulation today is unwieldy, expensive and prone to human error. Inefficiencies in processes put pressure on the highly skilled in-house resources required to complete compliance related tasks. If organisations are going to keep pace with regulation, and also control costs, they will need to change their approach. It will be those who embrace new methods and leverage technology who will enjoy a significant competitive advantage over their rivals.
Automating and eliminating repetitive tasks and manual processes is an obvious use case for advanced technologies, freeing up a significant portion of time spent on mundane activities. A recent Thomson Reuters survey found that in an average week, a compliance professional will spend more than 30% of their time manually tracking and reacting to enforcement actions.
This is just one example of a process that can be substantially automated through a regulatory tracking tool such as VIXIO PaymentsCompliance Horizon Scanning. Horizon Scanning is a single, reliable source of regulatory intelligence which enables users to easily track and monitor regulation, speeding up and simplifying the processes associated with gathering, analysing and evaluating upcoming regulatory and legislative change. It also ensures that compliance teams never miss a regulatory change or requirement.
“Horizon Scanning is a single, reliable source of regulatory intelligence which enables users to easily track and monitor regulation”
Leading organisations are waking up to this prospect and investing in emerging technologies and workflow solutions which accurately track and monitor changes across jurisdictions, freeing-up the time of compliance professionals’ so they can focus on value-add activities. Whilst regulation is not yet a digital process, by combining machine intelligence with human intelligence, firms are able to transform arduous processes, increase efficiency, and ultimately save cost.
With the pace of regulation not looking to slow down anytime soon, organisations need to review and adapt their approach. Those who turn regulation into competitive advantage will need to move past a manual and siloed approach to compliance. This requires a significant paradigm shift which may be a challenge for some organisations. However, the technology is out there to support firms who want to make the step.
Discover how VIXIO’s Horizon Scanning services can help your organisation.