The world changes on a daily basis right now. But, despite all the disruption, one of the few things that has remained constant is the need to fight crime.
Financial institutions must find a more efficient and agile way to tackle crime and meet their compliance requirements. That’s why there’s never been a better time to harness cloud technology. And here are five reasons why.
#1 – Reduce the risk of gaps in your processes
Challenging regulatory requirements and the complex array of systems required to run a compliance function demand robust risk management. Financial organisations have to adhere to stringent risk management models – such as BASEL III – and this can have the potential to impact efficiency. The alternative is cutting corners to meet deadlines.
Some financial organisations are also concerned about whether their current systems and processes are stout enough to maintain pace with escalating obligations across the compliance landscape.
That’s why the cloud is proving so valuable. Compliance technology in the cloud can provide ubiquitous access for compliance teams (even when they’re working remotely) while also increasing visibility over end-to-end processes. This prevents gaps from emerging and results in improved efficiency as well as closer adherence to regulatory requirements.
#2 – Scalable computing power
During crunch points, you need the agility to process vast volumes of data at speed. But after those peaks have passed, you don’t want to be left paying for capacity you don’t need. With compliance technology in the cloud, you can flex and scale as demand dictates.
So, if you need to address a massive spike in transactions or review a huge number of accounts, you can turn on more engines to process that information quicker (and then switch them off when you’re done).
Cloud technology also allows organisations to scale remote workforces and build the foundations for new ways of working in the future. The number of people who mainly work from home has increased in the past five years1 and that upward trajectory is expected to continue. With remote working here to stay, the cloud helps to ensure employees have secure access to necessary platforms, wherever they are.
#3 – Simplification and cost
Cost efficiency matters more than ever as the economy enters what is predicted to be the worst recession in 100 years2. Compliance managers that we talk to are struggling with increasing costs as they bid to maintain an effective function. Some also highlight how Know Your Customer (KYC) checks have increased – driving up the required headcount and associated costs.
The industry is under pressure to strip costs from non-revenue generating areas. FinTech and RegTech innovation is providing new ways to automate and simplify core compliance processes. The cost-crunching capability of the cloud can be a boon for banks and financial institutions – giving them greater control over spend and improving overall efficiency.
#4 – Fortified security
If there were any concerns about the risk and liability associated with the cloud, they’ve long since been mitigated. Data breaches happen not because of cloud platform weaknesses but due to endemic corporate security failures. If anything, the cloud is making people realise how fragile their internal and on-premises systems are.
Larger institutions aren’t as agile and take longer to adapt to changing cyber security threats. In contrast, cloud vendors like Azure, AWS and Google can, at speed, offer significantly more secure environments than those a financial institution could achieve internally.
#5 – Improved systems and data
With the compliance landscape shifting beneath their feet, financial institutions are striving to make the most of their data and fully embrace analytics.
As your teams battle to understand how data flows between different alerting processes and regulatory systems, layers of complexity emerge. Data governance also poses a significant challenge.
The cloud simplifies this complexity. It enables accurate, timely governance and addresses the challenge of data held on different systems, unifying it to improve accessibility and to simplify extraction.
For more information about how your compliance teams can get more out of cloud technology, explore our Sensa-NetReveal 360° solution.
Financial institutions are turning to the cloud to solve increasingly complex conundrums. In this blog, Brian Ferro explores how the cloud can help organisations meet their compliance obligations and prepare for an uncertain future
