ABA Banking Journal article highlights the value of combining human experts, technology to survive the “new normal”
As banks look to establish new patterns of normalcy post-Covid, they face strong headwinds. Given the continued steep pace of regulatory change, evolving customer behaviors, rising fintech competition, and shifting regulatory priorities, they are under increasing pressure to adapt a new paradigm, one that combines the agility of newer technologies such as artificial intelligence (AI) along with the powers of human expertise. That’s according to Wolters Kluwer Compliance Solutions, writing in a new thought leadership piece.
In the article, “Artificial Intelligence and the Pursuit of Compliance Program Optimization,” Elaine Duffus, Wolters Kluwer Senior Specialized Consultant, explores the value of leveraging AI technology to optimize banks’ regulatory compliance management efforts, in combination with the benefits that human experts can bring in validating those processes.
“Consider the way in which automated solutions apply AI to the regulatory change management processes. While the use of AI these days is almost a given, be sure to ask what is done with the machine-derived results,” writes Duffus in ABA Banking Journal. “Best practice would be to consider a solution that includes a human-expert validation step. There are far too many nuances in regulatory compliance change events to leave it entirely to the machines.”
To support her argument, Duffus references the findings of Wolters Kluwer’s latest Regulatory & Risk Management Indicator banking survey—where nearly half of all respondents cited “manual compliance processes” as a “7” or higher concern on a 10-point scale as among their top obstacles—in promoting the human-expert-plus-leading-technologies approach to most effectively manage today’s banking challenges.
“Even when your regulatory change management process is automated, if the content coming into that automated process is not properly configured, your expert compliance resources may take just as much time as a manual process to wade through all the irrelevant content,” Duffus warns. “Keep that consideration in mind when venturing down the road to automation. Ensure that the automated solutions under consideration provide the means to help control the fire hose of regulatory changes.”
“This latest Compliance Solutions article offers sound, practical guidance for regulatory compliance professionals who are working to optimize their resources—and the effectiveness of their programs during times of tremendous disruption and change,” said Steven Meirink, Executive Vice President and General Manager, Compliance Solutions. “The good news here is that the incorporation of appropriate automation into one’s existing compliance processes can have considerably positive impacts in simplifying and enhancing your regulatory compliance management program.”
