The TOP 5 Competitive Advantages of Compliance Digital Transformation for Financial Institutions

Digital transformation is the hottest topic in the financial sector, especially following the rapid market changes caused by the COVID-19 pandemic.

As the way we do business transforms, and financial institutions are forced to adapt, there’s no disputing either the supreme importance or the many advantages of effectively implemented compliance digital transformation.

Here are the TOP 5 BENEFITS that digitally transformed compliance brings to any firm operating within the financial sector:

1. Instant Data Access

Simply put, data is digital oil: its importance undeniable to the smooth workings of any financial institution. And by digitally transforming your compliance, you’ll gain instant access to valuable international governmental databases, sanction lists, and other forms of public information.

Once your framework is digitalised, this information creates a distinct competitive advantage: identity and document verification (for almost anyone, from absolutely anywhere) can be performed with ease, ensuring your scope of operations expands exponentially.

2. Enhanced Employee & Client Experience

Despite being a vital component of financial operations – especially with the pandemic changing the way consumers purchase goods and services – many firms still struggle to deliver digitised onboarding.

However, once you digitalise client onboarding, you create a major competitive advantage: clients can now enjoy a smooth, pleasant, and satisfying experience that only increases reputation and revenue. At the same time, digital transformation also benefits your compliance officers through improved performance of tasks, time-saving, and a reduction in operational costs.

Digital media expert Wyzowl suggests that “More than 90% of consumers believe that businesses ‘could do better’ when it comes to onboarding new customers.”

Clients’ positive onboarding experience led to them buying 90% more frequently, spending 60% more per transaction, and being 5 times more likely to purchase from the same company in the future,” say digital investigative experts Rosetta Consulting.

3. Cutting-Edge Adaptability

Staying compliant, especially with complex new regulations appearing more often than ever, has become a real challenge.

But digitally transformed compliance will enable your firm to consistently and constantly remain in line with these ever-changing regulations: allowing you to operate in real-time; providing access to cutting-edge news; and helping you to adapt effortlessly to ongoing changes.

4. Seamless Automation

Time has always been the enemy of compliance! But once you digitise operations, you’re automating all the tasks (such as fraud detection and ongoing monitoring) which have previously been hugely time-consuming.

With technologies such as machine learning at your fingertips, your compliance operations will be completely redefined: you’ll see costs plummet, while business performance rockets.

5. Advanced Analysis & Accuracy

With digital transformation, you’re getting advanced data analysis at a behavioural level. And this allows for vastly enhanced monitoring of client transactions.

Once you’re working with technologies that deliver fast and accurate fraud analysis while minimising risk, you can stop worrying about unwanted AML fines and focus your compliance efforts exactly where you need them the most.

At iSPIRAL we understand that digitally transforming your compliance can accelerate your organisation’s operations at any level. For that reason, we have developed RegTek+, a complete client lifecycle management, KYC & AML (On-Premise and SaaS) Solution which streamlines all your day-to-day compliance operations.

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