Did you know that only 27% of financial advisory professionals deem their regulatory compliance program scalable for future growth?
Compliance is a critical pillar to financial services organizations of all sizes – but relying on static compliance solutions can present a myriad of challenges, hindering growth and efficiency over time. From unstable systems to manual processes and soaring costs, the limitations can be overwhelming.
Related: Financial Technology Entrepreneurs Need to Prioritize RIA Compliance
Enter compliance software tools built to scale. These next-generation solutions address the shortcomings of static compliance and pave the way for seamless expansion. By embracing five core benefits – improved performance, enhanced security, better functionality, reduced costs and ease of adoption – financial firms can unlock the true potential of compliance.
Today, we’ll explore the common obstacles inherent in static regulatory compliance solutions, as well as how advanced technology can solve those challenges and help your firm scale.
Click here to watch the free webinar: How to Build Your Compliance Program to Scale
Problems with static regulatory compliance solutions
There are several core obstacles financial advisory firms face when operating with static compliance solutions, including an overreliance on manual processes, higher costs and more.
- Over-reliance on manual processes
Automated solutions should alleviate manual processes, however, if a static system does not incorporate the necessary functionalities, you may find yourself right back to where you started – entering data and handling administrative tasks.
Manually entering new clients into your systems is time-consuming and costly, while also leaving room for unnecessary errors. Those same issues create concerns with manual employee onboarding, preclearances and certifications, particularly when compliance systems are incapable of properly integrating with your other systems.
Furthermore, limited direct broker feeds can lead to manual statement reviews, exacerbating the effects of manual processes.
- Higher costs
The Total Cost of Ownership (TCO) is likely much higher for static systems as they may require significantly more up-keep. And should they require internal IT resources to manage and support, you will have to factor those costs into your overall budget for the system.
- Difficulty in sharing information between systems
Effective compliance requires innovation. And since static regulatory compliance solutions may quickly become obsolete, they will likely struggle to integrate with new, higher-efficiency programs your firm may wish to use.
The solution to these issues, of course, lies in compliance software tools that are built to scale – as well as having the proper policies and culture within your firm for growth.
A regulatory compliance program built to scale
To build a compliance program that can successfully scale, it’s important to focus on five core benefits in your technology solutions:
- Improved performance
- Enhanced security
- Better functionality
- Reduced costs
- Ease of adoption
Let’s take a look at each of these core factors and how they can translate to scalability within your firm.
Click here to download the free webinar recording: How to Build Your Compliance Program to Scale
1. Improved performance
Modern technology platforms operate on software-as-a-service (SAAS) models that deliver higher efficiency and performance.
Since your firm won’t need to perform the regular maintenance on-premises systems would require, you can enjoy an increased uptime – ensuring your compliance processes are running around the clock.
Related: Digital Transformation – What does it mean for Compliance?
Additionally, the quick responsiveness and low maintenance of SAAS models result in higher productivity for your staff and firm overall.
2. Enhanced security
Dynamic SAAS models usually offer enhanced security for your clients’ data.
Features like multi-factor authentication and single sign on can further protect against cyber threats and keep sensitive information safe. Those security processes can also shield your organization against regulatory risks and in the event of a compliance audit.
3. Better functionality
With ComplySci systems in particular, users can expect integrations with over 300 direct broker feeds, optimizing your functionality.
Moreover, dynamic compliance systems are built with access and integrations in mind – giving your team the ability to use a wider range of features and tools. For example, ComplySci proudly delivers access to a Control Room and Undisclosed Account Alert capabilities, just to name a few
4. Reduced costs
Less maintenance and support translates to lower costs over time for your entire organization. Plus, managed and professional service teams can act as an extension of your own compliance team managing broker feeds.
Related: Download the Free “Best Practices for Third-Party Vendor Management Compliance Checklist”
5. Ease of adoption
With single sign on, automated notifications and a customizable interface, scalable SAAS solutions are easy for your team to implement.
ComplySci’s systems also provide mobile-responsive web pages and a dedicated app for both Android and IOS-based devices.
Your firm is poised for growth, and it all starts with choosing the right regulatory compliance solution. With performance, security, functionality, cost-effectiveness and ease of adoption at the forefront, you’re well on your way to conquering compliance challenges.
Watch the webinar to learn more
Ready to learn more about regulatory compliance solutions built to scale? Click here to access our full webinar recording on the topic of compliance scalability, or connect with a member of the ComplySci team today.