If you work in the financial services industry, there is one thing that is clear: Regulatory complexity is increasing with no sign of stopping. New regulations are progressively introduced, and existing regulations are constantly evolving and revised. To lessen the burden of labor in achieving regulatory compliance, companies often employ digital solutions and systems to automate certain aspects of the work. Through systematic approaches, rules and regulations are translated into compliance processes and data points that can be be tracked, summarized, examined, reported, and audited. However, despite available automation capabilities, regulatory compliance is still associated with reduced operational efficiency, higher costs, and poor customer experience.
In order to remain compliant while keeping up your desired business rhythm, you must continuously revise your compliance operating models. Why? To optimize how the different compliance functions and lines of defense work together. As we’ve highlighted in our whitepaper, compliance by design is the organizational evolution required to tackle regulation-related challenges effectively. In this article, we will focus on the technological and user-experience considerations you must make to reach this goal, and explain how our new Business Component, Business Data Comparison, can help you get there.
Technology considerations for Compliance by Design
Achieving compliance is not only about processes and tasks to be done; it is also about the artifacts produced by the task: the data that gets generated or modified when performing a task, the narrative of the collaboration (which contains many data points), and the decisions and learnings inferred through the collaboration. To bolster organizational efficiency, your employees need tools that allow them to access and understand data quickly, without having to consult different applications or manually aggregate data managed by separate systems. Moreover, solutions need to enable participants to understand context and history with minimal effort, thereby making it possible for them to collaborate effectively and make informed and transparent decisions. In short, you need a system that works on behalf of the user while helping you keep risk at bay.
In order to optimize your compliance operations, you need to concentrate on three activities:
- Increasing efficiency of working with data and enabling continuity of work across systems and applications. People need to be able to readily access relevant information within the context of their work without having to switch application. When data is loaded from multiple sources, it has to be aggregated and presented in meaningful ways, including the narrative of the different stages of collaboration and decisions made.
- Ensuring continuous collaboration. In order to keep speed in your decision cycles despite multiple checks, reviews, and approvals that result from having multiple lines of defense, solutions must provide ongoing decision-making support to employees, by allowing them to trigger ad hoc investigations and proactively involve experts.
- Evolving applications faster and in line with business evolution. When regulations are evolving, when there are changes in compliance operating models, or when new roles in charge of compliance are introduced, rules and task models need to be updated across systems and applications, with regional differences only resulting in more complexity and, consequently, greater effort. Therefore, it is crucial to employ systems that allow fast first deliveries, as well as reusability and portability of business logic for when solutions need to altered, thereby optimizing maintenance efforts.
To solve these challenges and support compliance by design, Appway focuses on three key capabilities.
First, work automation sits at the core, and is fundamental in achieving efficiency irrespective of the work and collaboration patterns, from the very structured to the very flexible. To note, all capabilities are optimized for business logic portability to ensure cost effective evolution of a solution when work patterns change. Second, Appway provides intelligent orchestration across complex ecosystems of applications, systems, and services: powerful integration capabilities help overcome disaggregation of data, people, and systems, and serve to prevent application silos.
Thirdly, Appway helps clients deliver and evolve compliance solutions more quickly through Business Components. Business Components are pre-built, fit-for-purpose, and configurable solutions to recurring business problems that can be easily assembled into more complex applications for different contexts and needs. For example, with Business Components, companies with both regional and global departments can flexibly configure local and cross-jurisdictional compliance processes, rules, and collaboration needs. Business Components are designed based on work patterns and requirements in the financial industry; moreover, they can be continuously evolved as the industry and customer needs evolve.
Business Data Comparison
Business Data Comparison is Appway’s newest Business Component created to help clients achieve compliance by design. In particular, this Component helps organizations overcome inefficiencies caused by multiple iterations along checks, reviews, corrections, and approvals that are an inherent part of compliance operating models.
Further, Business Data Comparison tracks data changes performed along handovers between multiple collaborators working on a business process, and provides an overview of the changes between the current state of the data and the previous versions. Employees get a comprehensive set of data review tools in one place which provide clearly structured overviews of complex data sets and data field changes, powerful filtering capabilities, the ability to consult structured change histories, as well as built-in discussion features that provide the ability to collaborate in context without having to use external, non-integrated tools. All in all, the Component boosts efficiency in business data reviews, and supports transparent and traceable decision making.
The Component is self-contained and can be plugged into any Appway solution regardless of the work patterns it is modeled to support, thereby boosting data review irrespective of collaboration patterns or lines of defense involved. Moreover, the change overviews are constructed based on powerful yet generic business logic modeling capabilities, which ensure that it can be used no matter the level of a solution’s data structure complexity and or nature of workflows that generate data and changes. In other words, Business Data Comparison lets data and data visualization tell the story. Finally, thanks to the built-in traceability of user actions, auditability is ensured by default. All changes and the collaboration narrative are added to audit reports along contextual details and user information.
Business Data Comparison solves clients’ needs of operational efficiency through a fit-for-purpose solution that meets user needs. At the same time, it helps accelerate the delivery of a compliant solution and, through easily rolled-out updates, it helps reduce subsequent maintenance and evolution costs.
What can Business Data Comparison do for you?
To stay ahead of the game, enterprises must evolve their offerings effectively in line with customer expectations for fast and innovative services, while adhering to continuously increasing and changing regulatory requirements. If you employ fast, yet reliable, approaches you can differentiate yourself from the competition. How? By using best of breed components and services that allow you to deliver innovative offerings without losing momentum, react quickly to changing industry circumstances, and meet customers’ needs all while guaranteeing compliance and saving resources. Business Data Comparison can help you do just that.