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ComplianceNovember 20, 2023

Staying ahead of regulatory change throughout the lending lifecycle

Compliance touches every phase of the lending lifecycle. Learn how automation can keep your bank moving forward.

In addition to weathering significant headwinds in 2023, regulatory change management continues to pose significant challenges for lenders. The sheer volume of mandates that banks must comply with is overwhelming; not only do regulations change constantly, but they can also be massive in scope and depth. Compounding these challenges is the fact that compliance touches every phase of the lending lifecycle, as shown in the table below.

From application to post-closing activities, compliance is critical to every phase of the lending lifecycle.

To stay ahead, it is essential for banks to automate processes to reduce both processing time and costs as loans progress to closing and beyond. When monitoring is automated, personnel:

✓ Are promptly alerted about changes
✓ Can generate valuable reports
✓ Can access content from multiple sources that has been aggregated and analyzed

Ideally, an authoritative source library is linked to an internal function, process, risk, and control. If a change is made to the authoritative source, banks can go directly to the control that must be adjusted, or directly to the process where a new control must be developed. Doing so builds more than just efficiencies in the handling of the day-to-day tasks of management; it decreases an organization’s compliance risk associated with operations and enhances compliance risk management. Regulatory libraries not only help banks manage the volume and complexity of regulatory changes but can be instrumental in enabling them to understand the impact on the overall institution, and adapt compliance and business processes accordingly.

A comprehensive library of laws, rules, regulations, and guidance for federal, state, and global regulatory bodies and agencies, paired with enriched regulatory updates, helps banks to expedite reviews and quickly assess the impact of new and changed regulations. Mapping the regulatory library to internal policies, procedures, risks, controls, products, services, organizational units, and other elements of your compliance program is critical and expected, regardless of the size of the institution. In this way, a regulatory library adds tremendous value as a critical feature of the regulatory change management process. In fact, when asked to rank the importance of regulatory change management process automation features, respondents in the Wolters Kluwer 2022 Risk Indicator survey overwhelmingly selected the regulatory library as the most important. A library helps banks to identify and analyze specific regulations, assess the impact, generate reports, and much more.


With the right tools, processes, and policies, banks can increase efficiency and respond to changes more quickly. By embracing optimal strategies and technologies, lenders gain the control, certainty, and efficiency needed to successfully mitigate risk and manage ongoing regulatory changes. Internal policies, procedures, risks, controls, products, services, and organizational units with the right purpose-built solutions can optimize a bank’s ability to streamline, automate, and ultimately ensure compliance.

Wolters Kluwer provides a free, online self-assessment that can uncover regulatory change management vulnerabilities and opportunities to improve decision making. These are high-impact questions that every lending and/or compliance leader should ask themselves to stay competitive. The best part is, this improved understanding can inform and accelerate conversations with your team on where to focus your efforts.

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Assess your bank’s readiness in assuring regulatory change management practices.
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