Empowering Compliance Teams: Guided Workflows to Navigate Talent Crunch
April 10, 2024 | 3 min read | Mahesh Patil
Money laundering techniques are becoming more sophisticated, and regulatory intensity across the financial sector continues to increase. As regulatory requirements grow more intricate and numerous, the demand for skilled compliance professionals continues to outstrip supply. The patchwork of existing solutions being used by many compliance teams also make it difficult to implement new tools and constantly upskill the workforce with updates across different solutions.
Context
Businesses face the dual challenge of staying abreast of complex regulations while navigating talent shortages within their compliance teams. Failing to address these challenges could lead to compliance gaps, damage to reputation, and huge fines. In the current scenario, leveraging technology to streamline processes to empower existing teams and onboard new talent effectively is imperative.
In summary, the problems financial institutions face today
(1.) Sophisticated money laundering techniques.
(2.) Regulatory change and intensity.
(3.) Skill shortages.
Potential solutions
Modern technologies need to adapt to the changing regulatory landscape and techniques and increase the clarity as well as transparency of the data available to compliance teams to make better decisions. At the same time, technology platforms need to provide ways for compliance teams to ramp up new resources quickly to supplement the capacity of skilled analysts.
Most technologies today have multiple challenges:
(1.) Onboarding of new team members takes time and effort.
(2.) Insufficient clarity across the team of current work and status.
(3.) Inadequate data to improve processes due to lack of automation.
(4.) Outdated data and sources due to manual steps.
(5.) Infrequent knowledge updates on common and exceptional scenarios.
(6.) Lack of collaboration tools for teams.
Technology modernisation can offer multiple solutions to address these challenges.
Firstly, solutions need to provide customisable policies that can change as regulations evolve, allowing organisations to tailor regulatory processes. This would enable compliance teams to quickly adapt policies to specific compliance requirements and risk appetite. It could also streamline workflows based on low and high-risk scenarios, while maintaining auditability and transparency.
Secondly, solutions need to support aggregation and integrations across typically found in a financial organisation. A user-friendly interface and seamless integration can simplify the incorporation of AI/ML-powered processes, allowing businesses to implement new solutions without extensive training or system overhauls.
Thirdly, pre-defined configurable workflows can help guide compliance teams through critical steps of the process. They can bring clarity amid regulatory ambiguity, minimising confusion and ensuring that every compliance action is conducted accurately. By elucidating processes step by step, these workflows enable compliance professionals to navigate intricate regulations confidently.
Another facet of guided workflows is their ability to securely share relevant data between authorised parties while maintaining data confidentiality and integrity. Guided workflows ensure that only those with the requisite authorisation can access and act upon it. This eliminates information silos that are pervasive across financial institutions and promotes coordinated communication within the compliance ecosystem. It fosters confidence within compliance teams by providing a centralised platform for communication, real-time collaboration, and documentation.
Having one comprehensive solution for the end-to-end management of the Client Lifecycle supported by customisable policies, seamless integrations and guided workflows enhances the user adoption of the solution. It also streamlines processes to increase productivity, ensures that all team members are aligned, and empowers them to make informed decisions confidently.
The benefits that financial institutions can derive from this are
(1.) Faster data-driven decision making.
(2.) Quicker response to regulatory changes ensuring compliance.
(3.) Ease of adoption and increased efficiency.
Conclusion
In an era marked by sophisticated fraudulent actors, increased regulatory complexity and talent shortages, empowering compliance teams with automated tools and guided workflows is imperative for organisational success. By securely sharing data, enhancing communication, streamlining processes, as well as using modern technologies and methods can mitigate compliance risks and equip organisations to thrive in an increasingly regulated business environment. As the compliance landscape continues to evolve, embracing technology-driven solutions like guided workflows will be indispensable for organisations seeking to stay ahead of the curve.
Qkvin is ready to embrace these challenges through multiple capabilities
(1.) Real-time insights into processing times and status.
(2.) Traceable policies linked to the risk evaluations and regulatory controls.
(3.) Automated real-time data integrations enriching an end-to-end customer profile.
(4.) Guided workflow with the status and end-to-end view of the case or application lifecycle.
