Delivering Instant Banking Through GRC to Meet Customer Needs

Every smart business knows that a business needs to evolve along with its customers to truly succeed. Businesses that fail to evolve tend to be left behind. There are hundreds of businesses which were ubiquitous until they suddenly became outdated and slowly vanished. Sears, Blockbuster Video, Kodak, and Borders Bookstores are just a few examples of businesses that were outpaced by innovative competitors.

The banking and financial services industry has been insulated against such changes for a long time. The extensive regulatory requirements that every financial business is governed by ensured that most businesses were working at similar speeds. Customers were made to wait a few days for many processes, and it wasn’t a problem for the financial institutes because the same waiting period was present in their competitions’ processes too, thus they did not lose any customers to competitors due to these delays. That may soon be changing. 

Can an app replace a bank? 

Banks are considered irreplaceable right now. Those of us who have completed more than a decade as professionals cannot imagine a world without banks. Banks are where our salaries are deposited, where we signed up for our homes or our first car, and a bank account is considered a necessity. Many of us have multiple accounts and credit cards with multiple banks. The newer generation, the one which is just entering the workplace, does not have a similar point of view when it comes to banks. 

The new generation trusts technology companies more than it trusts traditional banks. They want to access their bank account through their app. Most banks have apps which allow users to access basic services, but these apps are severely limited. The younger generation is baffled that it can take multiple days for money they sent from their account to reach other accounts. Now, it is easy to simply admonish the younger generation for not being patient like us and having a problem with waiting a few days, but why do that when we can instead see the very valid point the kids are raising? 

We live in an era of convenience. People want to put in the least amount of efforts to accomplish the most amount of work. This can be thought of as lazy, and indeed there are many think pieces and books about how the new generation is lazier than ever before. Any of us that uses social media like LinkedIn and Facebook has seen posts by people our age, deriding the fact that young people are always on their phones and have no patience. However, let’s not forget that putting in the least amount of work and getting the highest output isn’t laziness – it is productivity.  

Compliance doesn’t need to hold banks back 

Banks know that customers hate waiting, but they think of the wait as inevitable. Banks do not make customers wait because it helps them – banks make customers wait to ensure compliance management. There are many regulatory requirements that banks must adhere to, and this adherence takes time and effort. What’s remarkable about GRC solutions is that they automate and streamline compliance to the point where this adherence will soon be instant.  

GRC technology is a good indicator of where we are headed. There has been no real automation in the bank compliance and risk management sphere, but that is finally changing. The recent statements and speeches by officials linked to federal regulatory agencies show that the agencies are also accepting that banking required more innovation.  

The banking industry of the future will be very different than what we have now. It is possible that the next generation will be amused that we had to wait for bank processes at all – the way many of us are amused that letters, which took months, were the only mode of communication before emails.  

If you want to get ready for the future of compliance and risk management, then see what a GRC solution like Predict360 can do for your organization. We offer demos and trials – just let us know what your compliance, risk, and governance needs are.  

About the Company

360factors, Inc. (Austin, TX) helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates regulations and requirements, policies and procedures management, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform based on artificial intelligence.

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