In recent years, the banking and financial sector has been more than any other marked by the rise of automation and digitalization of processes. Indeed, this control and management industry where compliance must be irreproachable lends itself perfectly to the constant innovations of fintechs, startups and other technological solutions.
In this article, we highlight how banks are taking advantage of automation opportunities to meet their compliance needs.
The challenge of compliance in the banking sector
Compliance will always be a essential responsibility for banks, regardless of the nature of their activities. Especially since it has a direct impact on their reputation. This is a double-edged sword: when executed effectively, it can strengthen the trust of your customers and give credibility to your organization while facilitating its relationships with institutional partners. If it is neglected, it can damage its reputation or even lead to sanctions.
However, compliance is a long and tedious process which requires rigor. Today, with the cybersecurity, she remains among the main risks for banking and investment businesses. This is due in particular to the difficulty of keeping up to date on:
- Regulatory developmentss with unreliable data sources
- One continuing education members of the team
- The new threats of cybersecurity
- Increasing customer expectations for faster and more reliable service
As a result, many leading banks and investment firms are turning to automation to take control of their banking compliance, from SOX to GDPR. We tell you why.
How does automation facilitate banking compliance?
Automating banking compliance is a an effective, reliable, and scalable way to detect and deal with irregularities in your business operations. In fact, manual and time-consuming processing and control processes can be replaced by a low-code technology consistent. This then considerably simplifies the way in which you comply with all internal and external regulations.
Here are five ways automation can both help your business stay compliant and drive efficiency across the board.
- Develop a compliance approach
In terms of compliance, each organization must be constantly up to date with the rules in force. To meet this challenge, automation integrates compliance into all of your processes so you can mitigate risks proactively, Ensuring ongoing compliance and keep up with changing regulations or business requirements.
- An overview
Automation also helps you fight against the fragmentation of people, data, and processes within your financial organization. For example, using a digital solution for regroup all of this data makes it easier to maintain compliance and increases visibility, so you can get a cross-cutting, global view.
- Adopting a hybrid solution
Despite what some recalcitrant myths still convey, the implementation of automation doesn't mean you have to say goodbye to all of your existing systems. On the contrary, the adoption of a hybrid approach means you can continue to pull data from and rewrite data from your old systems. So you can be more agile and adapt constantly to the needs of your business.
- Unifying your business
Thanks to automation, your teams will have access to a unified view of systems, with appropriate safeguards. This organization not only facilitates compliance by standardizing access to data, but also allows for better enterprise-wide collaboration.
- Reducing costs
Finally, compliance represents a significant fixed cost for all banks. Ensuring that processes are respected and that data is protected takes time but is crucial for manage risks associated with legal actions, fines, and reputational damage. The automation of compliance procedures therefore presents multiple advantages : it increases efficiency, reduces risks, and reduces the need for human intervention in key processes.
About StoryShaper:
StoryShaper is an innovative start-up that supports its customers in defining their digital strategy and the development of automation solutions tailor-made.
Sources: StoryShaper, Gartner, UiPath, Microsoft
