How Regulatory and Compliance Functions Can Generate Value

regulatory and complianceFinancial institutions are constantly on the lookout for ways to improve their operational efficiencies, and what better way to do this than to use data already gathered for regulatory and compliance purposes?

The 2013 results of a self-assessment by banks showed higher compliance with risk reporting practices than governance and infrastructure capabilities. The banks reported facing challenges in setting up sound governance processes, and few considered themselves compliant in this area ahead of the 2016 deadline. Regulatory and compliance reporting functions are particularly difficult due to the high number of reports required, and this has become a significant cost factor for financial institutions.

The Silver Lining

Most clouds have a silver lining, however, and this is no exception. Once you have collected data for various regulatory functions, re-engineering the process with an enterprise solution that reduces the time and effort required enables you to reuse it to generate value in several ways:

  • Improving Efficiencies

Enhanced knowledge of clients’ risk profiles enables you to customize your products for individual appetites. Through a better understanding of your customers’ banking patterns, behaviors and preferences, it’s possible to break out new customer segments and identify potential products to offer them. Overall, the data provides a more comprehensive view of your audience, which improves the chances of cross-selling and upselling successfully.

  • Reducing Costs

Once data is gathered for compliance purposes, there’s no longer a need to incur the costs of gathering it for other business purposes.

By reusing data already collected, banks can limit their chances of duplicating data, and the confusion that stems from having more than one identical record.

Improved understanding of customer preferences enables financial institutions to target marketing campaigns more precisely, which eliminates wasted marketing spend.

  • Generating Revenue

Eliminating duplication has benefits in more than one area. By establishing a single source for all customer intelligence, banks can improve accuracy of their data and centralize information management across organizations. Reducing the risk of duplication also streamlines middle- and back-office activities, freeing up staff to work on projects that add value and generate increased revenue.

Repurposing the Data

Capitalizing on risk, regulatory and compliance assets already collected to generate value for the business requires a five-step approach:

  1. Get buy-in from your leadership, based on the understanding that data represents a strategic asset and not simply an expense. This will circumvent concern about increased costs and avoid data ownership issues that contribute to corporate silos.
  2. Appoint a chief data officer at the business unit level, who can bridge the gap between compliance, IT and business operations and develop a vision for using data assets to create value.
  3. Develop an information management strategy around privacy and the sharing of data assets, which meets key business objectives of the institution.
  4. Set up a steering committee to develop the engagement model and funding procedures for information assets.
  5. Evaluate how data assets can support different projects to fulfill business objectives and develop a competitive advantage.

There are multiple ways existing data can be leveraged to generate additional value for a financial institution. We believe it’s time to stop viewing data as simply an operational cost, and start seeing it for the business asset it truly is.

JOHO OneSource™ enables companies to consolidate their compliance data in hours, instead of days, wading through multiple spreadsheets. Discover what we can do to help your institution today.

Analytics – Not just about the numbers; It’s about the people

Analytics are a priority for financial institutions to ensure their success and ability to survive. While many believe analytical data is all about number-crunching and dashboard presentation, it’s really about people. Presenting a solution that users aren’t comfortable with isn’t effective. What you need for a successful analytics implementation is a system that delivers results in a format the user wants—whether that’s a spreadsheet, a traditional board-style report, or a dynamic dashboard with bells and whistles. The secret to getting this right is discovering the best approach for each of the primary user groups, and providing solutions that deliver it.

Contact Staff

Customer-facing employees at the branch and operational levels are typically viewed as information consumers, who need access to data to better understand and interact with their customers.

This information could include their client’s history with the bank, sources of income, regular outflows, and whether they have investments to support credit. Having data at their fingertips places them in a better position to help the customer, either at the first point of contact or very soon after, instead of sending them from pillar to post to find someone who can give them an answer.

For example, if a young man walks into his parents’ bank and asks for an auto loan, the response he gets could be very different if his first point of contact can see immediately that both his parents are successful business clients holding numerous financial products.

IT Management

The majority of IT systems are built by technicians focused on delivering information. Whether you’re working with development and maintenance staff, report-writing analysts, solution providers, IT maintenance staff, project teams or business analysts, it’s vital to discover how the end users think, so it can be presented in a way they are comfortable with.

During JOHO’s Are You Ready™ process, for example, intelligence is gathered from multiple potential users to ensure the final product is customizable to suit different styles.

Through the JOHO OneSource Portal™, users can export information in any format they prefer, using the same data, extracted from the same source. Those who know what they want but aren’t sure of the format they prefer can even design their own report using a self-service business intelligence option.


Improving profitability and growth in financial institutions begins and ends with customers. As business acquisition costs continue to rise, it’s critical to understand the relationships with the people keeping you in business.

It’s not just about having financial products. Success depends on knowing where, when, how often, and what channels customers use to interact with you. A viable analytics solution uses machine-learning algorithms to predict which active clients might reduce the business they do with your bank, and enables you to target them with campaigns to decrease the churn rate.

Operations Managers

Knowing what your customers are using—and how—is the lifeblood of a financial institution’s operations. A top consumer bank in Asia, for example, discovered the value of advanced analytics when it found unsuspected similarities between groups of clients. This enabled it to create 15,000 microsegments within the customer base, and then develop a “next-product-to-buy” option that improved sales three -fold. The opportunity wouldn’t have occurred if the operations people weren’t using the data because they didn’t like the new format, which highlights the importance of taking end users into account when developing a system.

Executive Management

The C-Suite’s job is to determine the overall performance of the business and develop strategic plans based on realistic scenarios. With reliable analytics, your executive team can use business intelligence to measure a range of performance factors, and create budgets and goals based on extrapolating from past results.

This enables them to focus on training and education of employees, performance of products and features, and develop new offerings around customer demand. The executive team may need an entirely different set of report formats from other users, to enable them to develop a long-term strategic view.

Building an analytics reporting system needs to start with the people who will use it. It’s not just about the technology, it’s about delivering a solution that gives users what they require.