Compliance requirements are ever-increasing, creating additional process headaches. Numerous consumer financial protection laws, including Know Your Customer (KYC) and Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) regulations, have significantly increased the due diligence required to verify a customer’s identity before a new account can be opened or a loan can be approved. Much of the data needed to ensure compliance resides outside your business, making it difficult to aggregate and integrate into your internal processes.
The majority of financial institutions are overwhelmed with the growing number of rules and requirements that must be monitored, tracked and reported on a timely basis to meet federal and state regulations. A survey of more than 100 senior banking officials across Europe and the U.S. found that one in five banks have made a significant increase in spending around compliance requirements.
Adding resources to perform manual tasks is not a cost-effective, long-term answer to complying with mounting regulations. Instead, consider investing in RPA for automation of repetitive, time-consuming compliance tasks that tie up your valuable employees.
Keeping current with hundreds of global regulatory agencies and laws can be a complex, tedious and time-consuming set of activities. By implementing RPA, your bank can automatically aggregate and integrate compliance information into your business processes, streamlining and expediting the required work while reducing costs.
The benefits of RPA include the following:
ELIMINATE MANUAL REGULATORY MONITORING AND DATA COLLECTION
Banks can automatically extract regulatory information and updates from a multitude of websites and portals, and deliver it directly into the hands of your bank employees.
For example, resources at a British global bank were needed to manually aggregate rules from more than 300 websites daily and normalize the data into a model for input to their regulatory compliance system. A typical compliance officer was spending 15% of their time tracking developments.
Most of this manual work was easily automated with the deployment of software robots. The bank is now able to quickly and efficiently capture regulatory information from public websites, including new rules, rule changes and regulatory news. Robots work side-by-side with the bank’s employees to monitor sites—from stock exchanges (NYSE, Euronext) to federal regulatory agencies—to augment their internal compliance function and ease their due-diligence burden.
EMPOWER COMPLIANCE AND RISK MANAGEMENT TEAMS
RPA eliminates information silos and gives your employees ready access to the information they need to get their work done. Software robots can deliver critical data to your staff via dashboards, databases, Excel spreadsheets and compliance reporting applications in any format required.
A leading global financial institution’s Information Analysis Unit (IAU) manually gathered information for risk assessments of banking irregularities and criminal activities from more than 40 internal and external sources. Their existing process was cumbersome and time-consuming, taking analysts an average of two hours per case to repetitively search, collect and organize the needed material.
The company deployed software robots to automatically analyze potential exposure for reputational, operational and technological risks for more than 250 cases a month. This improved information retrieval time per case by up to 96%—and an average of 480 hours per month is now better spent on higher-value tasks.
AVOID COSTLY FINES AND REPUTATIONAL DAMAGE
With RPA, you can integrate the data required for regulatory reporting in a timely manner, eliminating delays and reducing the risk of fines for non-compliance. Hefty bank penalties usually make the news, potentially harming your firm’s reputation in the industry.
Software robots can also be deployed to automatically and quickly check an individual’s background against thousands of sites, including monitoring sanctions lists from sources such as the U.S. Treasury and Immigration and Customs Enforcement (ICE). Not only does this reduce the likelihood of fraud and the associated costs, it also helps your bank ensure compliance with Know Your Customer verification requirements.
PROVIDE AUDITORS WITH COMPLETE AND ACCURATE INFORMATION
Intelligent software robots can be used to automatically access and integrate audit trail information for regulatory purposes and include any information that might potentially fall under an audit. This streamlines the process and ensures all documentation is in order.