Is your financial institution or bank doing everything it can to stay compliant? It’s a fundamental question that needs an honest answer. Regulatory reporting and the challenge of staying compliant can be a constant dilemma.
You might have already implemented steps for compliance, but have you done enough?
It’s also about having a system that matches current technological advancements. These advancements are coming fast. While you might be handling it manually, is this process sustainable for the future?
Discover why getting regulatory reporting right is essential for your business. Also, find out what you can do to make it better.
Why Is Regulatory Reporting So Important?
There are several reasons why regulatory reporting is so important right now. Here are a few points to understand the impact and ensure your business is safe.
Making Sure You Are Legally Compliant
The most important aspect is to ensure your business is legally compliant. It’s important to note that it’s not only businesses that need to show regulatory compliance. In some cases, individuals within a company can also suffer from serious financial or legal problems.
Anything you can do to protect your business is good business sense. Compliance requirements give you guidelines to follow. You need to have evidence to prove your compliance efforts.
Setting the proper compliance standards for deep regulatory reporting is integral to compliance.
Accountability In Regulatory Reporting Is Key
Nobody likes to make mistakes, but they do happen. If something goes wrong, it’s best to have a backup plan. Accountability gives you that.
Using data can be your new best friend, as it helps you produce strong regulatory reporting. It provides the perfect crumb trail to find out what happened and why.
This valuable data can also help to reassure your key stakeholders. There is no question about the integrity of your regulatory setup.
Also, it gives the management within your organization essential information. It can help them check your business’s progress and adjust accordingly.
Giving Employees Peace Of Mind
Employees are now more business savvy than they were 20 years ago. Consequently, employees are now looking to work at places that match their high values.
Company policies and procedures give employees peace of mind. It shows them you take rules and regulations seriously.
The world is becoming more competitive in attracting and retaining talent. Employees feel legally safe if a company can show high ethics.
Also, the business can work more efficiently with clear rules and regulations. The knock-on effect from this can be higher profitability overall.
Protecting Your Reputation
Reputation is everything. Everybody remembers the big stories when the regulators have taken action. Avoiding this situation is a priority.
Your company reputation speaks volumes at all levels. A solid company reputation keeps your current clients happy. It also helps you find newer and bigger opportunities.
With increasing demands for transparency, following regulations is vital in promoting the best public image. This need is even more critical in the financial sector.
Any error in this industry could potentially impact the economy. Also, not forgetting the negative perception of the public.
How To Improve Your Regulatory Reporting
Now that you understand how crucial regulatory reporting can be. It would help if you looked for ways to improve it in your company.
The most obvious point would be to move from a manual system to an automated solution. Automating the process yourself can be stressful and impossible in the long run.
Planet Compliance spoke to Elena Unciuleanu, the Founder & CEO of Reporting Center, who explained how this works in reality:
“The main asset of a FinTech is speed: they want to change the world now, and if they start to develop embedded RegTech themselves, they lose their focus. Because RegTech is like a never-ending task, it’s like a trap, and they will feel exhausted from keeping up with the regulatory updates. That’s why in order to remain competitive, the correct approach for a FinTech is to use an external RegTech Solution. You need a RegTech partner that has the same rhythm, speed, and mindset as the FinTech.”
Moving From A Manual Process Is Easier Than You Think
You might be under the illusion that automating all your processes will be a mammoth task. Ten years ago, it would have been, but now many regtech companies are more efficient than ever before.
Indeed, the Elite Reporting Platform from Reporting Center is a perfect example of using a more modern approach.
Elastic Engineering Solutions For Regulatory Reporting
Reporting Center specializes in reporting software solutions, specifically for the European banking market.
The company is more than aware of the changing regulatory requirements in banking. Consequently, they use elastic engineering solutions to match the constant changes.
No Training Costs
Keeping up with the technological changes in the banking industry is no mean feat. Not every regtech company has the answer.
However, many banks started using the Elite Reporting Platform within three months of its launch. As a bonus, it is easy and intuitive to use, so you don’t have to spend money on training.
Meet Official Reporting Deadlines
Your compliance team doesn’t have to work flat out to meet deadlines. The system helps you stay organized and on top of any critical deadlines.
In effect, you have far greater control than ever before. It lets you spend time on other areas of compliance that you might have struggled to reach in the past.
Next Steps For Regulatory Reporting
Don’t delay in rethinking your regulatory reporting system. The indicators are that the regulators will continue introducing new laws and regulations.
Your internal compliance team might be on top of it right now. However, will they be able to maintain their rhythm when things speed up?
As a more proactive approach, taking action now could be the best thing to do. Not only will you be ready for the onslaught of new regulatory requirements.
You can also be happy with the knowledge you will have modernized your internal systems. You are gaining business intelligence for your business to succeed at a far higher level.