With the world currently experiencing an economic downturn and a cost-of-living crisis, it may seem like a confusing time to invest in new technology.
However, a recent post by RegTech firm Clausematch detailed that with such a crisis on the horizon, why are FinTech firms like Currencycloud – a company that recently partnered with Clausematch – investing in policy management automation?
Clausematch said, “Many companies, still scarred by the crisis in the past couple of years, are deciding It’s time to cut costs, hold on tight and hope for the best – again. While a cautious approach may be the most sensible route, there are technology investments that still need to happen, as they have the potential to help your company navigate this brewing storm and arrive safely to the other side.”
The company provided seven key reasons why organisations are investing in policy management technology now. Firstly, the board of a company will be looking for efficiencies and cost reduction, and there will be a laser focus on areas that don’t directly bring revenue, such as compliance.
Clausematch detailed, “Automating policy management has the potential to cut compliance costs by up to 30%, by reducing the back and forth in editing and approval processes, eliminating inefficiencies and allowing senior, more expensive staff to focus on strategic tasks.”
The second reason is that the speed of regulations definitely won’t slow down – if anything, they will speed up in an unstable environment. With this considered, companies should be prepared to update and distribute policies and procedures to the staff quicker than ever, at no extra cost.
Another area of focus is that headcounts may be frozen during such as unstable and chaotic time. “By automating time-consuming, manual tasks, you can make sure your existing team is leveraged in the best possible way and is prepared to deal with an ever-increasing demand for compliance,” said Clausematch.
The challenging market conditions are also a key reason to take on new policy management technology. Clausematch highlighted it is vital to make sure you keep your stars happy by freeing up their time to do what they love, instead of burying them under boring, repetitive tasks.
Avoiding unnecessary fines is also imperative for firms. Clausematch said, “Financial institutions across the globe are constantly being fined by staff transgressions, such as use of unauthorised social media at work and breaches in BYOD rules. With an automated policy management system, you can make sure your compliance team is on top of updates and able to efficiently spread the word on what needs to be done to all members of staff.”
Scaling up in compliance is the next area that Clausematch underlined. The firm explained, “Launching new products, expanding to different geos, communicating with a growing workforce and so on will certainly require the compliance team to be agile and adaptable to emerging requirements.”
Lastly, Clausematch underlined, “Modern policy management solutions are cloud-based and, as you probably know, this can translate into a much lower Total Cost of Ownership, as the cloud has lower infrastructure costs, and consequently requires lower maintenance. It can also bring flexibility to scale up, with shorter development and implementation times.”
Read the full post here.
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