Mid-size banks are implementing risk and compliance technology solutions to increase the efficiency of their risk and compliance teams. This is the first time for many of the banks in implementing such a technology which can lead to a lot of confusion.

Achieving ROI from risk and compliance technology is easy, provided that the bank uses the right strategy to choose a solution to implement. Here is a simple step by step guide to implementing risk and compliance tech.

Choosing a modular risk and compliance solution can give your bank a lot of flexibility in how it wants to implement risk and compliance technology. Share on X

Step 1 – Determine What the Bank Needs

Before any solution can be looked at, it is vital that the bank understands its own needs. The risk and compliance teams in the bank need to do an assessment of risk and compliance performance. Areas of concern need to be highlighted and necessary upgrades should be determined. It is essential to create a list of required features.

Download: Technology Journey Buyers Guide

Step 2 – Determine the Scope of the Implementation

The bank also needs to understand the scope of the implementation it is going for. There are a lot of different types of solutions and tools available. Some solutions can manage all aspects of risk and compliance both, while other smaller solutions only provide a single service or solution to a specified problem. The bank needs to decide whether it wants to go for a complete overhaul or for a minor upgrade.

Step 3 – Decide on a Budget

Once the bank understands what it needs and has estimated the scope of the tech implementation, the next step is to determine how much of the budget can be allocated for the solution. This is vital because there are many different types of solutions with different prices and payment structures. Banks can go for solutions from legacy vendors which are expensive, and the implementation costs are high as well – or banks can go for solutions from modern vendors that are generally easier on the budget. Determining the budget for the project will help the bank make the right decision.

Step 4 – Get in Touch with Vendors

Once the bank has all the internal information it needs, the next step is to look at the different solutions that are available. Look for the most innovative risk and compliance technology vendors and get in touch with them by calling them or sending them an email. Try to include some brief information about what the solutions needs to be able to deliver. The sales teams at the vendors will get in touch as soon as possible with the required information.

Step 5 – Ask for a Demo

The easiest way to determine which solution will be right for the bank is to ask for a demonstration of its capabilities. Once the bank has a list of vendors that can provide solutions that the bank can afford, the next step is to test the solution. Make sure that a lot of employees from different departments are present during the demo. Some companies make the mistake of only including executive level members during the demo. Risk and compliance officers will be the primary users of the solution; it is necessary to include them in the demo so they can ask questions based on ground realities.

Step 6 – Final Contract

The demo should provide a good idea of what the solution can deliver. The next step would be to discuss pricing and implementation with the vendors. Get in touch with the vendors that demoed a good solution and get a contract that includes all the pricing and implementation details. The contract will also include information on how long the implementation will be and when the bank can expect the solution to be functional.

Step 7 – Implementation

Once the final contract is signed by both parties, the implementation will begin. Cloud solutions are the easiest to implement and the whole process can be completed in just a few days. On-site solutions generally take longer to implement – anywhere from a week to a month. On-site solutions also require hardware and network implementations, which is why the process takes longer and costs more. The implementation will be followed by training. Once the employees are trained the bank can start using the risk and compliance technology to its full potential.

Choosing a modular risk and compliance solution can give your bank a lot of flexibility in how it wants to implement risk and compliance technology. Banks can choose to start with a limited implementation and expand as the bank grows and gets more comfortable with the technology. Get in touch for a demo of what our American Bankers Association endorsed compliance solution Predict360 can do for your bank.