Top Compliance Concerns for Financial Services
Banks and Financial Institutions have many complex compliance requirements. The companies involved in financial services need to be particularly vigilant on compliance concerns.
Penalties and fines, legal proceedings, loss of income and damage to reputation may be the consequences for neglecting or downplaying compliance.
In order to address the challenges of compliance in financial services it is fundamentally important to understand them. In order to assist you in your compliance journey, I am listing the top compliance concerns for financial services and how you can address them. They are listed below :
Keeping Pace with Changing Regulations
Staying updated on the rules (which are often changing) is extremely important to keep a competitive edge in any financial services. If you fail to do so it may lead to incurring penalties and legal issues. This would potentially cause a dent in your bottom line.
The regulatory framework for financial services would be guiding your broader strategy. Thus it is important to periodically refresh your systems and incorporate what is changing.
If you keep an eye on the regulatory surroundings each could help you pay big time in the end, saving your time, money and brand reputation. This is intact the top compliance concern any bank or financial services provider will have.
Controlling Compliance Costs
Duff & Phelps did a survey on the financial services sector and found out that compliance costs in the financial sector are set to double by 2022. Most financial institutions and financial services provider pour roughly 4% of their revenue into compliance which unfortunately is going to grow to 10% over the next five years.
So, What is causing this increase in compliance spending?
complying with rules is fundamental but budgeting for the salaries, regulatory penalties, and cases of individual liability on the part of high ranking executives guilty of misconduct are the likely factors.
All of these add up-to a need for companies to use advance technologies and compliance management solutions to better manage compliance costs.
The Fintech Factor
Often referred to as ‘fintech’ financial technologies such as mobile e-commerce, digital currency and wallets, and web-based businesses in general has introduced newer and larger risks. For financial institutions and financial services provider it is mandatorily necessary to master a balance between risk, security, consumer protection and bottom line.
Choosing the Right Platform
To absorb changing regulations, avoid unnecessary penalties it has becomes important for banks and financial Institutions to choose advanced, convenient, affordable, accurate, and easy to implement systems.
PiChain’s compliance management solution ‘DeepPi’ typically is a cognitive and proactive compliance solution that in an automated way handles compliance.
Hence in this Digital Era, Advance and Automated Compliance Products Powered by AI and driven by Block-chain allows safe, easy KYB (Know Your Business) for any Business or Financial Institution.
At PiChain we understand how important KYC and KYB is for business. To support all our customers and businesses during these challenging times of COVID-19 we have made our fully digital contactless AI/Blockchain driven COVID proof eKYC and eKYB solutions completely free this year. We do realtime eKYC and eKYB along with AML checks for more than 40 countries.
Please email us at [email protected] for queries.
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