Does an investment in compliance technology pay-off?
Every year as firms shop around for automated compliance solutions, several factors come into play and on the top of the list -cost. Many businesses question ROI when it comes to investing in technology. They ask themselves, does compliance technology do more than make work easier for a supervisor or compliance officer?
The answer is yes.
Let's look at 5 reasons why it pays to invest in compliance technology:
Fines. In 2017, FINRA fines stood over 47 million dollars for violations, mostly regarding the creation, enforcement, and maintenance of supervisory efforts and WSPs. Experts suggest violations will continue to increase in frequency and dollar amount during the Covid-19 pandemic as opportunists take advantage of security loopholes and look for creative ways to manipulate the market.
No automation increases risk. Relying on human intervention may not be enough. Without automated technologies to address and demonstrate written-supervisory-procedures compliance and regulatory adherence, places a firm at a higher risk of being flagged by regulatory governing bodies.
Keep financial crime from knocking at your door. As a result of the pandemic, 2020 has us entering into a new era of financial crime. Without the right technology to improve surveillance of employee activity and market manipulation firms may not be ready to address up-scaled ransomware, dark-cyber, and high-profile financial crimes.
Improves operations. By removing paper-driven processes and automating daily business tasks, firm associates decrease time spent on tasks and improve their performance. Also, automation streamlines the supervisory and compliance review process and provides tools to improve oversight.
Data security. Today, more than ever, data security is vitally important. Traditional methods are not enough to keep PI/PII information safe from criminal opportunists. An investment in data security ensures modern technology methods such as a data-centric approach utilizing encryption and key management is used to maintain your firm and customer's information safe and secure.
The long-term pay-off.
An investment in Compliance technology is an investment in long-term savings, security, infrastructure sustainability, and peace of mind.
Staying ahead…
The truth of the matter is ready or not technology drives change. Integrating new approaches to the changing compliance ecosystem, especially in surveillance and detection, is the only way to stay ahead of the competition, away from the regulator's radar, and keeping your data safe.
DbCom - EQube Compliance
Using a FinTech & RegTech company that is both knowledgeable and experienced in the financial space is crucial. DbCom is a financial technology & regulatory compliance company with over 25 years of experience in Fixed Income, Equity capital market, Investment Banking, and Private Client. DbCom is the provider of EQube, a leading compliance product suite offering 25+ modules targeting daily operational processes that
address regulatory requirements
address conflict of interests
conduct surveillance & identify exceptions
strengthen supervisory controls
monitor employee activities
Visit EQube’s website and request a demo.
Posted by: Updated: Lisandra "Sandra" Richardson, Audit & Project Coordinator | Client Relations, DbCom-EQube
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Hi, Please feel free to reach out to me @ lisandra.richardson@dbcomsys.com
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Resources
“An Oracle White Paper”, (2012). “Broker and Trading Compliance: Make Your Investment Pay Off”. Retrieved from http://www.oracle.com/us/industries/financial-services/broker-trading-compliance-wp-1878852.pdf
TechCrunch. (2016). “As Compliance Pressure Mounts Businesses Turn to Regulatory Technology”. Retrieved from /https://techcrunch.com/2016/10/18/as-compliance-pressure-mounts-businesses-turn-to-regulatory-technology/
Forbes. (2016). “The Role of Technology in Regulatory Compliance”. Retrieved from https://www.forbes.com/sites/cdw/2016/07/11/the-role-of-technology-in-regulatory-compliance/#3fbdb67a3b45