In a heavily-regulated, complex industry, disclosure management and automation to answer the offer management challenges is a heavy lift, with risks and rewards, for financial service institutions of all varieties. Innovative tools are answering these demands.
Talking tech, both at the Money 20/20 event and since, I’m fielding good questions:
- What don’t we know? And how do we keep up?
- How to best address regulatory content and disclosures to ensure accuracy, compliance and auditability?
- How does/can automation address our pain points?
- What products create, manage and deliver disclosures for all products and channels?
The regulatory environment in which companies in this industry must operate has expanded enormously. As new products emerge and the crypto economy grows, so, too will regulations. Institutions are being monitored more closely and regulations are being enforced more vigorously. Fines in excess of a billion dollars have been levied in some cases and additional accountability measures have led to personnel terminations and the end of careers.
In the fast-paced fintech space, one thing is clear: those best equipped to leverage technology to achieve greater security and compliance win the day. For fintech marketing leaders struggling to stay ahead of the steep learning curve, our ongoing resource series is just for you. Much like the platforms the Naehas team has created to answer the most vexing regulatory challenges, these articles are purposely-built to address known needs.
AI and Automation for the Win
To be competitive, institutions must be able to execute their marketing communications not only in full compliance, but more creatively and more efficiently. All of this, at increased speed, and with the plethora of regulations that are managed and enforced by federal, state and governmental agencies.
What are the best performers doing? Increasingly, finserv leaders are evaluating Artificial Intelligence (AI) and Machine Learning solutions to deal with these complexities. Finserv marketers are tapping AI-powered platform tools to meet the growing challenges of compliance in a competitive market. We’ve seen this from large banks and see it emerging as a solution for smaller, community banks, too.
Here’s why. The purposely-built solution allows teams to manage disclosures end-to-end in one place, from centralized content fragments repository and change management engine to seamless proofing, validation, and distribution to respective channels. How? Naehas automates the creation of disclosures with a rules engine, quality assurance tools, and a compliance time machine to store the history of every disclosure for auditors and regulators.
Four Core Challenges
The pressure and extent of change on financial institutions have increased to such a degree that they now must allocate significantly more resources to compliance. The cost of doing so is reflected in their bottom lines, both directly, and in workflow delays due to increased manual review cycles. In such a competitive industry, anything that slows time to market or limits the number of marketing efforts that can be executed is extremely detrimental.
- Increasing volume of content, increasing complexity of regulations
The demand from both sides without an increase in resources puts enormous strain on teams.
- A lack of consistency and transparency
Getting a clear picture of the checks that need to be performed is tricky. Group A performs a certain set of checks while Group B covers a different set with some overlap, and maybe a different interpretation. It is hard to know if the checklists are comprehensive, or if something slipped through.
- A manual, error-prone, friction-burdened process
Tracking changes and comments in spreadsheets and annotation tools with various interpretations of the materials can create tension between legal, compliance and marketing teams, and increase the risk of regulatory errors or infractions that are costly to financial institutions in terms of fines and reputation.
- Delayed time to market
Excessive review cycles slow down marketing, allowing more agile competitors to capture new customer business, as competing banks often target the same audiences.
These challenges are ever-present with fintech marketing, operations and compliance teams as they coordinate enterprise-wide programs to achieve greater personalization, land and expand better customer relationships, and, ultimately, generate revenue. How best to achieve success?
The answer is collaboration. Searching and finding the right partners to help deliver innovative technology solutions which help teams address and overcome the pain points, while keeping the end goals in mind.
Disclosure management and intelligent reviews are two primary platforms the Naehas team has developed to help financial service companies, laser-focused on supporting what matters most: security and compliance.
To execute more offers, more quickly, and in 100% compliance with all applicable regulations, institutions need an automated solution that employs Artificial Intelligence and Machine Learning capabilities to replace sluggish and error-prone manual processes.
As someone always committed to partnering toward best solutions, the emerging fintech products make the time right to share what we see working. Naehas Intelligent Reviews has become a trusted automated assistant that helps compliance and legal teams ensure 100% accuracy and compliance without slowing down their ever-increasing and ambitious workloads. By employing artificial intelligence, augmented with industry-specific compliance rules, we’re able to support client’s most critical needs. I’ve outlined some top ones we address here.
- Reducing tedious, error-prone manual review processes, and ensuring consistency and accuracy across the entire marketing workflow. Talented and valuable marketing, compliance, and legal staff are freed up to advance more interesting, pressing, and valuable work.
- Manual content change management, compliance, and legal review processes that once took days or weeks can now be reduced to hours or minutes, both reducing the institution’s regulatory risk and increasing its ability to reach more business targets with more offers more rapidly.
- Additionally, this solution enables institutions to centrally manage all compliance evidence in a single, searchable file system, and to demonstrate compliance using the built-in compliance reporting functionality. Imagine that: a bulletproof audit history for regulators.
Keeping up with the trends, tools, technologies and applications is a steep learning curve. In today’s fast-paced climate of increasing complexity and regulations, those who tune into these solutions, and leverage their learnings, will emerge as the best case studies of success.
As you move to stay ahead of the competition and build the necessary infrastructure, keep in mind these key benefits to AI-assisted compliance tools:
- REDUCE RISK by reviewing more content with greater accuracy
- INCREASE PRODUCTIVITY by reducing review cycle times and enabling more content and offers with confidence
- DRIVE CONSISTENCY by having a comprehensive rules-based assessment that guides your review and approval process
- IMPROVE AUDITABILITY by centrally managing all evidence in one source of truth thereby supporting credible challenges
Here’s hoping your road ahead drives you to resources and results. More efficient compliance, greater personalization, better customer relationships, and stronger revenue, are all within reach.