Since the financial crisis of 2008, firms have had to adapt their business models to manage and comply with ever-increasing regulations. Competitive market conditions, increased risk and exorbitant penalties for non-compliance has placed an enormous amount of pressure on compliance teams. Combined with the growing notion that compliance departments need to deliver more value in their roles, this has left teams scrambling to look for ways to manage their functions more effectively and efficiently so that they can provide a more predictive and strategic role in managing compliance.
“Since the arrival of Covid-19, we’ve seen a massive spike in the amount of Kiwi and Asia Pacific financial service providers who are looking to digitise their compliance processes in the wake of social-distancing,” says Rachel Strevens, Founder and CEO of Invsta. “Typically, compliance departments are incredibly resource-heavy, which has a direct effect on profit margins and makes them slow to respond to change. It’s incredibly exciting to see that compliance teams are turning to technology to help drive a leaner department and carry most of the administration weight, freeing up their capacity to fill their strategic mandates.” says Strevens.
With the current dynamic pace of disruption hitting the financial services industry, firms must start prioritising the implementation of strategies to help drive a more agile and responsive business. Sharesies, the online investment platform, recently announced that they have opened around 75,000 new accounts since Covid hit. While there is more to Sharesies’ success than the ease of opening an account, the large number of new accounts opened during this time of social distancing and lock down highlights the importance of digital onboarding, which is a key first step in the client acquisition stage.
With advancements in artificial intelligence (AI), biometrics and optical character recognition, the onboarding process has become a seamless, digital experience that not only improves customer satisfaction, but also meets compliance requirements through digital know your customer (KYC) and anti-money laundering (AML) processes. Intelligent AI algorithms enabled by cloud platforms can instantly verify government documents and forms of identification, making identity verification processes a quicker and more cost-effective exercise. What used to take weeks to process, can now be done automatically in a matter of seconds.
“A digital onboarding strategy is a crucial first step to position your firm for success in a challenging market environment.” adds Strevens. Automating processes and streamlining compliance workflows frees up compliance teams to adopt a more proactive approach in identifying risks and ensuring better customer outcomes. This enables the compliance role to provide a more supportive function, challenging firms to grow the business while providing predictive scenarios to maintain regulatory compliance, uphold customer data privacy promises and protect capital against the threat of fines or penalties for non-compliance.
For more information on a compliance technology strategy that will support your business objectives, visit invsta.com/modules