Beyond Bedrock: Updating Compliance Technology
Wealth management firms are lagging in their investment in risk technology, with a concerning 71% lacking access to digital tools & resources for effective risk management. As Dan Schulman, CEO of PayPal, said, “We went from being the Flintstones to the Jetsons in 9 months.” It’s time for firms to make a critical decision: either invest in compliance practices leveraging modern technology and risk management tools or face a multitude of organizational risks head-on.
Navigating the Risks: The Hazards of Outdated Compliance Practices:
• Regulatory Dynamics: Firms unwilling to adapt risk falling behind in a swiftly changing regulatory environment.
• Reputation at Stake: Your reputation is everything. Firms seeking growth may struggle to attract new advisors if their reputation is compromised. Remember, it only takes 20 seconds to search your firm’s name on Google!
• Talent Drain: Top talent is not interested in spending half their time sorting spreadsheets and preparing manual reports that could be easily automated.
• Operating Leverage: Profitability is key in every business. Firms that build operating leverage across the organization, including compliance, will be more profitable.
• Death Spiral: Insufficient investment can trigger a downward spiral, ultimately leading to higher costs in the long run compared to continuous, incremental investment in automation.
Embracing Tomorrow: Benefits of Adopting Jetsons-Inspired Technology:
Built for Change: Firms can stay agile and adapt quickly to changes in regulations, maintaining compliance and avoiding penalties.
Competitive Edge: Firms that invest in risk management programs are better positioned to attract and retain top advisors.
Value-Driven Approach: Investing in automation streamlines routine tasks, allowing supervisors to concentrate on higher-impact work.
Boosting Profitability: Implementing standardized processes and systems boosts productivity while minimizing costs.
Staying Ahead of the Curve: By investing in technology that is built for change, firms can increase efficiency, trim costs, and sustain their competitive edge.
Adopting modern compliance solutions isn’t only a good idea; it’s essential. By embracing technology built for today’s digital world, compliance leaders can tackle regulatory changes head-on, minimizing risks and boosting operational efficiency. If you’re ready to update your legacy technology and take control of your data, reach out today for a demo of the Four Eyes platform.