In the wake of the 21st century, there has been a single constant in the global business environment – “Disruption”. As crimes in the financial industry become more organized and sophisticated, companies need to constantly evolve and stay ahead of the curve. Regulators have a broader spectrum, as the risk transcends beyond a single financial institution and covers national interest.
In such a time of peril, a company needs to fortify itself internally. This can be accomplished by focusing on three critical aspects:
What are the areas a financial institution needs to focus on to evade the disruption caused by financial crime?
In my opinion, reducing compliance cost is a very myopic outlook. The objective should be to focus on long term value extraction where the compliance function is an enabler to growth and does not create constraints. It can be achieved through effective management of three aspects:
To conclude, financial companies have a constant need to evolve and keep up with the changing dynamics in the market. Adhering to regulatory requirements is essential without impacting customer experience. While the path maybe full of uncertainty, the only way to succeed is by being compliant.