The Modern bank compliance model

Traditionally, models focused on compliance where conceived and built at a time when the purpose of regulatory compliance was largely to enforce the legal obligation. The concept of regulation to identify and manage risk was at best a secondary consideration. In more recent times it has become clear that regulation is much more than the scrutiny of legal obligations, it now has a focus on business continuity, risk, risk culture, mortgage fulfillment, deposits, cards and more. Even though many financial service institutions have done a lot of work to respond to immediate regulatory pressures, the industry needs a more structural approach that will allow banks to effectively and efficiently mature their risk-and-control frameworks to make them more durable and easier to sustain.

Neo-Analytics has found that often, risk teams are tasked with identifying the controls and processes to mitigate risk, usually with some support from finance, but with little background or IP on best practice methods to address these issues. This lack of fundamental understanding of the control environments required to meet regulatory challenges often leads to repetitive labour-intensive activities with uncertain effectiveness.

One of the foundation principles to effective compliance maturity is the management and governance of data. Effective regulation literacy, accountability and compliance starts with developing a minimum level of data maturity. If your compliance activities tend to be isolated, lacking a clear link to the broader risk-management framework and governance, then get in touch.

We work with regulated financial services organisations to model, predict and report regulatory risk. Our services are cloud based and use advanced analytics to meet the regulatory challenges of our customers. We dramatically decrease the compliance-and-control spend while improving the impact on the risk profile of the bank.

Get in contact for an informal chat.