According to the 2019 ABA Survey of Bank Compliance Officers Report, the average financial institution spends about 5 percent of its overall budget on Compliance. Financial institutions are looking for ways to limit or even cut compliance budgets after years of rising costs. Yet departments of Compliance struggle to get the work done with available resources. According to a recent Ncontracts survey, around two-thirds of compliance officers says "don't have enough time to manage regulatory compliance" is one central point.
Many compliance officers have reported that they:
- at times, they lack resources and also staff
- shortage of right tools
- absence of support from other departments.
How can a financial organization reduce the cost of Compliance and still remain compliant? This needs a combination of creativity as well as practical thinking. Thus we have brought six tips to help you:
- Get help from experienced compliance staff
Some tasks require specialized command, action, and discernment. Hiring Compliance can be costly. Only Compliance professionals spend their time on activities in the best way which needs talents. Spending time nagging staff to complete tasks, finding out if tasks were completed, and lastly, collecting documents to prepare for an exam, that's big-picture compliance work for less time. Such repetitive administrative tasks like these waste a lot of time which can easily be automated. To tackle major initiatives, free up your compliance department.
Ways to streamline your Compliance management system-
- Plan strategies meeting with Compliance:
Giving more time to the compliance officer will result in better solutions and rule interpretations that will provide you with a competitive boundary. Coming up with a new product or service idea without coiling in Compliance can be a waste of time. Compliance officers who constantly say "no" when asked if the Financial Institutions can do something usually do this because they run out of time to find the interesting areas in the regulations or find original ways to deliver solutions.
- Emphasize training :
Guidance and regulations can be easily misinterpreted. Basically, Compliance is a netting of complicated legal documents, regulations, and advice. Compliance can get wrong if the papers are not analyzed. Thus compliance officers should participate in ongoing training so that they get it right. Training provides a unique insight into the regulations.
- For compliance-related disclosures, shop around that needs regular updates :
For disclosures, look around for a cost-effective and compliant solution. Some form providers charge much more than a compliance attorney to change a single sentence.
- Take advantage of the costs paid by one department or team to help other departments and teams:
Many hats can be worn through technology solutions. To provide market insight to the marketing team, the compliance department's Redlining Analytics tool can be used. Also, to identify potential complaints about tracking brand mentions, use marketing's social media monitoring tool. FI should find new ways to use existing tools and get creative done.
- Full utilization should be made of your compliance management system (CMS):
Use the full functionality of the compliance management system software that you've purchased. You can achieve a greater bang for your CMS buck if you make a small investment in additional training for your department or other staff at the Financial institution making your finance institute more efficient and collaborative, and giving.
Building an automated CMS also allows an FI to:
- Empower other depts to do basic regulatory research.
- Conduct QA or compliance reviews of their processes to create workflows.
- Automate services like task tracking, reminders, and audit trail.
- Centralize compliance/risk management tasks.
Boston Financial Advisory Group’s COMPLIANCE iNBOX (CiB) helps businesses take care of their GRC (Governance, Risk, and Compliance) needs. The product is 100% SAAS (software as a service) based and is easy to use without the requirement of assistance from an in-house IT professional.
The most important feature of the product as far as Risk and Compliance Management is concerned is that it is agile and adaptive. Given the continual changes in the business and regulatory environment, it can become quite challenging to keep up with the multitude of changes taking place. It can be a great distraction from the core business of a company as well.
CiB helps businesses in this aspect by keeping its components up to date regarding the changes in the regulatory environment that they are operating in. With secure data and savings on cost and time, proprietors can ensure peace of mind for themselves and their stakeholders.
Why not give us a call & find more about us? We are here to help you.
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Visit our website www.complianceinbox.com for more details.