Corporate governance is a key focus factor across the financial services spectrum, now more than ever. A virtual trifecta of issues has helped catapult these issues back into the spotlight. First, S&P 500® ESG Index has recently (May 2, 2022) undergone its fourth annual rebalance. Second, the fall-off of cryptocurrency in early May has finservs of all types coming under heightened scrutiny. And, third, as noted in a recent discussion Naehas held with Forrester, they and other consulting firms like McKinsey & Co. are tracking the growing insistence of the new generation of workers that their employers practice corporate citizenship. For myriad reasons, grounded in both management and marketing, those moving toward transparency, compliance and responsibility have a strong competitive edge.
From government regulations to voluntary disclosure practices, Environmental, Social and Governance (ESG) is factoring into strategy sessions and driving daily discussions.
Banks, wealth management firms, fintech startups and insurance companies alike are all grappling with regulations. Whether from government agencies, international bodies, rating agencies or market standards, guidelines driving compliance, reporting, risk mitigation and consumer protections are top of mind for all finserv marketers today.
The power of cloud platforms, purposely-built for highly-regulated industries, is emerging as a game-changer for those marketing professionals and risk mitigation teams mired in the complexities of compliance.
There is no time to wait. Whether a major national bank, community lender, credit union or fintech startup, readying resources to better manage regulatory compliance tops the To Do list. 
In December 2021, the CFPB called on a handful of those companies to provide information that industry and regulatory experts are seeing as a clarion call for preparing for forthcoming compliance guidelines that will likely be required of that as-yet unregulated financial services sector. Our team offered a series of articles on that development, urging companies to work sooner than later to rev up their regulatory engines, by establishing processes and partners to support compliance and disclosure management. (Check out our Resource Directory)
The Office of the Comptroller of Currency (OCC) is the primary regulator of banks chartered under the National Bank Act and federal savings associations chartered under the Home Owners’ Loan Act. The OCC issues rules and regulations that govern the banks it supervises.
It established and oversees the Community Reinvestment Act (CRA), enacted in 1977. The CRA requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods
The ISO/IEC 270001 family of standards, also known as the ISO 27000 series, is a series of best practices to help organizations improve their information security. It does this by setting out information security management system (ISMS) requirements. While implementation of ISO 27001 is not mandatory, some countries have published regulations that require certain industries to implement ISO 27001.
As we’ve experienced with our clients, deep industry knowledge establishes a strong basis from which disclosure decisions and platform solutions are determined. Knowing the genesis of such guidelines is useful for anyone operating within companies in highly-regulated industries. At financial industry conferences, virtual and in person, in executive roundtable discussions, and marketing and compliance team planning sessions, the industry is putting in the work of being better informed and better prepared for disclosures. This is evident with those banks and wealth management firms’ voluntary corporate sustainability disclosures. This is valuable and increasingly vital in ever-changing, complex and competitive industries.
Gaining a better understanding of corporate governance, industry perspectives, historical context, emerging technology, and current events helps marketing and risk management teams make informed decisions. Learnings on best practices and innovative solutions drive better outcomes. What’s more is that the collective knowledge bank of resources is being shared to a wider audience of users.
We applaud the deep dive discussions and resources we’re seeing and hearing in the market today. Collectively and collaboratively, these shared insights shed light on innovative technology solutions which automate compliance processes, improve auditability and reduce risk.
So many institutions are grappling with the challenges of legacy systems which create lengthy cycle times with error-prone manual processes. That is changing with the emergence, and understanding of, artificial intelligence. Automation and cloud technology are a driving force producing better outcomes. Solutions like those Naehas offers make a compelling case for pivoting from legacy systems to platforms built specifically for financial services. We see it first-hand with clients whose operational efficiencies reduce both risk and costs, while improving processes and allowing teams to be more productive and, as a result, more profitable.
Industry clouds allow our clients the ability to leverage a range of solutions that drive efficient, accurate and consistent disclosures to meet the highest regulatory standards. In the words of Naehas CEO, Rab Govil, “The ROI is immense.”
The industry is ramping up its readiness. Leading firms are understanding the why behind AI. As we’ve seen with clients whose processes and profits have increased measurably, understanding how Artificial Intelligence and Machine Learning work, and finding vendors to drive the process, are both critical to driving enterprise-wide growth.
Automated compliance through cloud platforms reduces errors and mitigates risk. The benefits of automated compliance support a range of functions martech leaders orchestrate, from offer management, intelligent reviews of regulated content, and disclosure management initiatives.
Finserv experts with a clear sense of how regulations have evolved, where they are headed, and how to better manage their risk and their disclosures will have a competitive advantage moving forward.