4 Reasons Compliance Teams Excel When Using Regtech
A lot has been written about how businesses can manage compliance easily using Regtech-based compliance management solutions. What often gets lost in all that talk is how technology helps the compliance managers and their teams achieve better satisfaction levels at work as well. Regtech can also result in a much more rewarding career for compliance experts across the country. There are 4 main ways that compliance teams shine when compliance technology is used:
- Visible Performance
- Activity Ownership
- Fewer Follow-ups
- Enhanced Reporting
Compliance is a domain where failure is highly visible while successes are less so. If there is a compliance failure then it is immediately highlighted, but when there is no failure the absence of a failure is not highlighted. Another problem is that there is a lot of work that compliance teams do besides dealing with compliance problems; there is a major focus on improvement compliance efficiency. However, most compliance reporting is related to issues and vulnerabilities and there is not enough data captured to highlight all the work that has been done by the compliance teams.
Regtech makes all the work that has been accomplished by the compliance team easily visible to the board of directors. Executive dashboards show real-time data about compliance issues with comparisons to historical data, showing the improvements that the compliance team has made. Regtech also generates a lot of performance metrics. Compliance teams can show improvements through metrics such as ‘’mean time to issue resolution’’ and ‘’mean time to issue detection’’.
Compliance teams need to manage compliance across the enterprise, which means that they need to collaborate with the rest of the enterprise as well. Many reports require inputs from other departments and acquiring that data can take a lot of time. Compliance management simplifies such workflows through activity ownership. If a manager from another department needs to provide documentation, he or she will be notified by the system. Similarly, whenever there is a compliance issue, managers can assign employees to tasks to mitigate the issue within the system.
This ensures that employees from other departments of the organization have clear directions on what they need to do. It also makes it easier for the compliance team to track progression on compliance activities and quickly intervene if a task is getting delayed. Ensuring that every member of the organization understands which activities are their responsibility makes it easier for the compliance team to get the collaboration they need from the rest of the organization.
Regtech compliance solutions track the progression of all compliance activities. This has a profound effect on the follow-ups that the compliance team needs to ask for and for the ones it must provide. There is no longer a need for them to send reminder emails to departments that have not sent in required documentation – the other department will be automatically notified by the system. The board of directors and the compliance manager can also see how all the activities being performed by the compliance team are progressing – they thus do not need to ask for updates or for reports about the work being done.
Compliance management solutions allow the compliance team to create engaging and insightful reports. Manual reporting is a tough task – the compliance team must first collect all the information from various sources, standardize all the data, analyze it for insights, and then put all the reporting in a document. Compliance management solutions completely automate most reporting. Since all the compliance data is stored within the platform, the solution can easily compare and analyze the data.
This allows the compliance team to easily create reports by slicing and dicing through historical data. They can thus analyze compliance data in-depth and highlight trends and metrics that would have otherwise remained hidden behind the noise. It is also possible for the compliance team to create real-time reports based on the data being entered into the solution. This also allows the compliance team to easily highlight compliance vulnerabilities that need to be managed as well as improvements that have been brought about due to the efforts of the compliance team.
All these features result in the compliance team’s efforts and successes being highly visible. The compliance team’s problems are also easier to understand because they have the data to back it all up. People who work in the compliance domain can understand its complexities, but others often have trouble grasping why some tasks need to be done and what purpose the compliance activities serve. Increasing compliance transparency makes the link between the organization’s objectives and compliance activities clear to everyone.
Interested in seeing how your compliance team can benefit from Regtech? Get in touch with our compliance experts for a demonstration of the Predict360 Compliance Intelligence Suite – endorsed by the American Bankers Association (ABA).