How financial services can manage the cost and complexity of compliance—while maintaining a great experience.
The cost of maintaining regulatory compliance is significant—and as requirements skyrocket, so does the price tag.
Compliance costs for banks are sky high.
gettyWhile industries across the board have seen an uptick in costs and requirements over the past few years, financial services have been hit especially hard. Rice University’s Baker Institute for Public Policy found that when put together, U.S. banks’ total non-interest expenses have increased by an average of more than $50 billion per year since the passage of the Dodd-Frank Act.
According to the Competitive Enterprise Institute, large firms are now reporting the average cost to maintain compliance can total up to $10,000 per employee. And overall, when you compare compliance spending to pre-financial crisis levels, Deloitte estimates banks’ costs have increased by more than 60%.
These rising figures have been spurred by growing consumer demand for digital payment channels, increases in fraud, and the lasting effects of the 2008 financial crisis. While the regulations are meant to safeguard against risk, rising complexity and compliance costs are putting immense pressure on financial intuitions and putting experiences at risk.
Time for process modernization
As the world becomes increasingly digital, banks need full visibility into their payment operations. They must ensure processes are operating efficiently and that they are meeting evolving compliance standards. But toggling between multiple systems creates organizational silos, wastes time, and increases risk. On top of that, inconsistencies lead to a lackluster experience for customers and employees.
Digitized processes can help banks maintain regulatory compliance, while improving experiences and reducing costs—it’s a win-win.
Here are the three biggest compliance-related benefits for banks that optimize payment operations:
1. Constant compliance: By integrating risk management and embedding controls within digital workflows, you’ll gain consistent visibility and improve your ability to meet regulatory control and reporting requirements.
2. Improved experiences: By giving customers visibility into claim statuses and outcomes through an omnichannel portal, you’ll increase transparency and engagement, while simplifying life for employees.
3. Reduced costs: By quickly identifying inefficiencies and streamlining processes, you’ll make business-as-usual updates and day-to-day management more effective, while decreasing the likelihood of fines.
A new approach
The opportunities are vast, but if processes and technology aren’t used efficiently, results may suffer. And it can be challenging to even know where to start—not to mention determine who will lead the effort and what the timeline should look like.
This is where financial institutions can really benefit from working with the right partners. ServiceNow and Accenture have joined forces to help banks successfully navigate their digital transformation, starting with payment operations. Now, banks can unite core systems of record into a single view, providing a clear line of sight into their payment processes with ServiceNow APIs and Accenture’s trusted data integration expertise.
It’s time for a modernized approach to payment operations. With better visibility and embedded digital controls to automate documentation, you can tailor multiple layers of security based on regulatory requirements—ensuring higher levels of compliance at lower cost.
