10 Reasons Why Compliance Software Can Improve Compliance Management
9th October 2018 3016 - Blog Posts
Tighter, more complex and fast-changing rules in regulatory compliance are making the process more onerous than ever before. Increasing numbers of financial firms are looking for ways to ease the regulatory burden, and compliance software has an important role to play in this process. Here are ten reasons why compliance software can help you improve your compliance management:
Compliance software saves time
Compliance software can dramatically reduce the time it takes to manage compliance tasks, checks and audit trail. It can automate some of the crucial tasks involved in onboarding thus saving a significant amount of time. In fact, we have seen that our compliance software can reduce processing time and associated costs by as much as 50-80%.
Staying on top of KYC and AML
Stricter Anti-Money Laundering regulations were introduced last July, prompted by ongoing financial crime – in fact the FCA reported that investigations into money laundering leapt 12% last year. Compliance software can help your firm to stay on top of the ever-increasing and changing AML rules, by automating some of the rudimentary checks that are essential.
Documenting regulatory compliance and easing auditing issues
Financial firms need to be able to prove regulatory compliance and provide a strong audit trail. This is far easier with the help of compliance software. An external or internal audit becomes far simpler because all the relevant documentation is incorporated into the system.
Improving transparency and visibility
As compliance software centralises data, it is much easier for everyone within your company to see and distribute updated regulatory policies and procedures. This makes compliance more transparent across the board for both internal and external stakeholders.
Compliance software makes it simpler to manage risk, as customised systems can evaluate and analyse risk factors much faster than if the process was executed manually. Lawson Conner can offer it either as standalone software or a fully managed service which can reduce regulatory risk even further by tapping into our compliance expertise.
Bridging the skills gap
Compliance software can also help with the current skills crisis in the industry now. In a survey of Chief Executives earlier this year, 69% were concerned about the lack of availability of key compliance skills following the recent influx of regulatory changes. Benefiting from Managed Compliance which leverages compliance software, can drastically free up resources.
Significant long-term cost savings
Although compliance software requires an initial investment, in the long-term it will pay off with considerable operational savings. Increased automation means that key tasks can be performed far more quickly, and resources are freed up to concentrate on the key income-generating areas of your business.
Avoid penalties and reputational damage
There are serious repercussions associated with inadequate regulatory compliance, both in terms of financial penalties and reputational damage. Compliance software can minimise the likelihood of human error, as it provides an audit trail to prove that due diligence has been carried out and keeps policies, procedures and regulatory changes all in one place and up to date.
Gain business insights
Along with reducing your regulatory burden, this software can help you to gain some valuable business insights with customised reports and the identification of possible critical patterns within your clients’ financial behaviour.
Improved documentation of business decisions
Compliance software will guide employees through a consistent decision-making process which will be documented. The rise in its importance follows an increased emphasis on AML by the UK’s Financial Conduct Authority (FCA). This avoids corporate risk and provides more opportunities for company-wide compliance management.
Lawson Conner can offer a range of services and software to help with onboarding, compliance management and monitoring, creating KIDs (for PRIIPs) and KYC/AML compliance. Contact us today to find out more.