Compliance managers have an essential role to play in the financial sector. The financial sector is one of the most heavily regulated industries in the world and thus every business that operates in this sector needs to make sure they comply with all the regulations that apply. These businesses depend on the compliance management team to ensure that every other employee in the business is following the regulations and every business process that is being used within the organization is also compliant with all the regulations and laws that apply.
What a lot is asked from the compliance managers, not a lot of thought is given to what these compliance managers need in order to do their job with better efficiency or to deliver better compliance performance for the organization. This is a major oversight as these people are the frontline of compliance management and need all the help that they can get. It’s important to provide these people with the tools and technologies that are required to work efficiently because it will directly benefit the organization and help them achieve better profitability.
Making Better Use of Time
One of the biggest problems that is faced by compliance managers and their teams these days is the fact that management does not realize just how stressful all the compliance work can be. It’s easy to understand why we are in this situation. Management usually does not have to directly ensure compliance and usually rely on compliance reports and the compliance team to make sure that everything works well. The disadvantage of this disconnect is that they also do not realize the problems that compliance managers are facing and may sometimes simplify those issues and not provide the tools and solutions that are required.
A major problem is the amount of time it takes to complete the administrative tasks that compliance managers and teams need to do in order to ensure compliance. There is an important distinction here which should not be forgotten, the work can be divided into two different parts – actual compliance work which helps the organization improve compliance, and the administrative work which is required to create a framework which allows the compliance managers to do their duty.
The administrative overload that is experienced by compliance managers and teams is one of the worst we can see in the financial sector. Most departments in the financial sector have a lot of workload but the difference is that their work is directly related to their job role. compliance managers and teams on the other hand must create documents and spreadsheets which contain all the records and data which they will need and then maintain these documents and spreadsheets manually.
Imagine how much lower the investment Department, or the mortgage Department, or even the retail banking Department would be if you took away all their technology and solutions and said ask them to manually create documents anytime a customer needed something. It’s hard to imagine such a business being able to function at all, but this is how most compliance teams must work. They have no specialized compliance solutions or technology and must rely on their own ingenuity and the documents and spreadsheets they create to service the compliance management system.
No Second Line of Defense
Another major problem being faced by compliance managers and teams is that there is no second line of defense to prevent human errors. Human errors are inevitable. A business can do everything it can to make sure that these errors are minimized as much as possible but it’s a simple fact that if you do something 10,000 times manually then there’s bound to be a mistake a few times. That is why when it comes to most other records it is a common practice to make sure that everything is being double checked by an automated system.
There is a desperate need for such a system in most compliance departments in the financial sector. Having an AI powered compliance management solution means that all the information that is being stored and all the processes that are being followed throughout the enterprise are also being monitored continuously by technology. This hasn’t immense impact on the overall compliance management framework and allows businesses to minimize compliance issues to a degree which is simply not possible then compliance is being handled manually.
That is why providing compliance measures with the technology and solutions they need ends up solving almost every problem that is being phased by them in the current dynamic financial system. Compliance technology has been designed specially to ensure that compliance managers can extract the most amount of value out of their own work and their teams work without increasing the efforts required to an unsustainable level.