Laundering of funds and funding of terrorism. Climatic peril. Both internal and external fraud. Threat to the company’s operations. Threats to the confidentiality of data and computer systems. Corruption and bribery. Each year presents an extended and more complex list of dangers and elements that banking compliance departments must monitor and respond to.
Chief compliance officers (CCOs) and teams must take a holistic look at their functions to understand the problems and opportunities as the pandemic recedes. Today’s compliance officers must find solutions for many interrelated issues. They need to increase the efficacy and efficiency of their compliance activities and make intelligent use of data and technology.
Three Essential Regulatory Compliance Needs for 2022
In addition to the risks associated with ineffectively interpreting the regulatory agenda and managing the expectations of external stakeholders, the unprecedented amount of global regulation is imposing substantial demands on the change capability of banks. It is an assessment that premium Banking Technology partners, like Maveric Systems, monitor.
The tech-powered compliance function
Corporate growth is sharply focused as compliance departments plan to invest more in data and technology and combine it with a data-driven strategy. Technology is expected to bring an improved understanding of policies and procedures, monitoring and oversight, remediation, and, importantly, cost reduction.
Road-testing Compliance Programs by going Agile
Testing out compliance programs offers nuances and gap areas for banks. From culture, data, internal standards, and training, FIs understand where they stand compared to the competition. By embracing Agile as a philosophy, banks can progress toward digital maturity faster. Frequent compliance testing also exposes flaws and oversights in a bank’s response speeds and effectiveness.
Creating an integrated solution to stay ahead of the regulatory change pipeline
Regulatory compliance is a multidimensional theme for banks that intend to stay ahead of the curve. From planning portfolios (managing delivery across levels and enacting governance that facilitates transparency) to coordinating regulatory needs (being aware of the shifting regulatory landscape and iterating scope management) and, finally, adopting superior strategic design (reconciling synergies between interdependent systems), FIs must pool energies to create integrated solutions.
Looking ahead, the compliance divisions of most banks need to shift their focus from advisory to more proactive risk management and monitoring. Putting this into effect entails becoming an active co-owner of risks and providing advice on statutory rules, regulations, and laws, all while maintaining impartial oversight of the control system. This would precisely translate into:
- Thinking creatively about how operational requirements are affected by laws, rules, and regulations across enterprises and processes,
- Establishing criteria for the significance of risk (for example, material risk, tolerance levels, and risk appetite),
- And finally, maintaining a thorough system for identifying and evaluating potential hazards (objective risk-assessment scorecards and risk-measurement methodology)
About Maveric Systems
Starting in 2000, Maveric Systems is a niche, domain-led Banking Tech specialist partnering with global banks to solve business challenges through emerging technology. 3000+ tech experts use proven frameworks to empower our customers to navigate a rapidly changing environment, enabling sharper definitions of their goals and measures to achieve them.
Across retail, corporate & wealth management, Maveric accelerates digital transformation through native banking domain expertise, a customer-intimacy-led delivery model, and a vibrant leadership supported by a culture of ownership.
With centers of excellence for Data, Digital, Core Banking, and Quality Engineering, Maveric teams work in 15 countries with regional delivery capabilities in Bangalore, Chennai, Dubai, London, Poland, Riyadh, and Singapore.