Wednesday, 11 July 2018 | By: Kostas Kotsiopoulos, Chief Commercial Officer, Profile Software
Regulatory changes and technological innovations lead banks to transform their business models to better manage risk, enhance client service and thus remain competitive, flexible and agile. In particular, the financial services organisations need to deploy a framework to support Basel III (for capital requirements and liquidity risk), MiFID II (for investment management), PSD II (for payments), Open Banking and GDPR, with these already in force. Inevitably, the aforementioned regulations affect the way banks are operating, which mainly impacts their relationship with customers, as these are greatly supporting transparency, ease and fast service.
However, such regulatory changes can also be seen as an opportunity to do business more efficiently and enhance one’s competitive advantage. The element that can accelerate compliance and organisational efficiency lies within digitalisation with new technologies deployed to address complex concerns.
According to Deloitte’s report “Financial Markets Regulatory Outlook 2018” the primary challenge for financial institutions and banks, in order to create a risk-free and compliant infrastructure accommodating local and international regulatory requirements, is to “adopt new approaches and invest in tools and strategies that can help them efficiently navigate the new complexity”. By investing in technological innovations banks can achieve performance efficiency and regulatory compliance across their operations and leverage opportunities for market growth through new products and services deliverance. This can help banks gain significant value by streamlining their processes.
The strategic deployment of modern technologies will allow banks to build a streamlined, risk-averted architecture across the organisation, automate their full processes and improve decision making, while ensuring increased productivity, operational cost optimisation, transparency and sustainability.
Therefore, banks that recognise the importance to renovate using robust risk management techniques in their operations are the ones that will manage to comply more efficiently and effectively, so as to achieve increased profitability and competiveness in this rapidly changing marketplace.
*The article is published on bobsguide (11.07.2018). Trademarks are property of the respective owner.