May 2, 2023
Estimated reading time: 4 minutes
Regulatory compliance management software: how to choose the right one for your business
Regulatory compliance management software can help financial institutions commit to consumer protection and reduce the risk of cyber attacks. In most cases, regulatory platforms can also help bring down the cost of compliance, as they increase operational efficiency across departments.
In hundreds of jurisdictions, there are thousands of financial services regulations. But regulatory compliance management software exists to make it easier.
What is regulatory compliance management software?
Regulatory compliance software exists to support both large corporations and small businesses. Its purpose is to highlight any relevant regulations for your business, and facilitate your compliance.
The financial industry is tough because regulations don’t simply apply across the board – that’s why relevance is probably the most important factor related to regulatory compliance. Since there are multiple jurisdictions and company types, not all regulations will apply.
A common pain point across financial services is that it takes a great time investment to sort through all of the potential regulations, and then create compliance strategies. It’s why many larger businesses have entire departments and compliance officers solely dedicated to regulation.
Moreover, regulatory compliance is “a job that’s never done”, since updates are being announced all the time. This leads to frustrations around the time and money it takes to comply with regulations – it feels like a mountain you’re always climbing.
But regulatory compliance management software allows you to do it in a better way; with automation. It frees up your team to work on value-adding tasks, instead of constantly sorting through the noise to determine what actions you need to take.
Features of regulatory compliance management software
When deciding between different types of regulatory compliance management software, there are some common features that should help with comparisons:
- Machine learning AI vs rule-based systems
One of the most important features of any software you’re using at work is ease-of-use. It should be simple to navigate, make your information accessible and not disrupt your current processes and systems.
As such, many prefer to work with a regulatory compliance management solution that can be customised. This way, your compliance officers can create a tailored solution to the exact regulatory needs of the business and cut through the noise of irrelevant regulations.
Let’s take CUBE’s RegPlatform compliance software as an example. We empower teams to create a dashboard with configurable alerts, weekly report summaries and data visualisation widgets. This allows our partners to access what matters the most with pinpoint precision, at the simple click of a button.
Machine learning vs rule-based
There are two different technical underpinnings to regulatory compliance management software which emerge most commonly:
- Machine learning AI
It’s up to your business to determine which is most suitable. Rule-based systems work with complex algorithms in a static way – leaving no room for bias.
However, most businesses prefer to work with a platform that runs on machine-learning or AI software. It works in real-time and is more sensitive to analytics, highlighting subtle trends or predictions in regulatory intelligence.
Moreover, machine learning technology facilitates horizon scanning, so your people can see what’s around the corner before it happens. At CUBE, our horizon scanning technology is one of the most advantageous features of RegAssure, because it takes the manual work out of regulatory compliance. Plus, this feature highly reduces the risk of non-compliance fines and penalties, even for smaller businesses.
Of course, another important factor is whether your regulatory compliance management software operates in the jurisdiction(s) that you do. This is often an overlooked factor for companies running in a single country, but if you’re looking to scale, it could grow in its importance.
For example, CUBE currently operates in 712 jurisdictions around the globe. Instead of purchasing different products for different continents, our clients can learn about each of the relevant regulations incorporated into a single program. Not only does this lead to significant time savings, it saves on financial investment, too.
How to choose the right regulatory compliance software for you
Choosing the right regulatory compliance software for your business might feel like choosing between a frog and a toad- they look pretty similar on the surface. But it can be costly to choose the wrong one – “buy cheap, buy twice”.
So if you’re looking for a program that can help you monitor and classify changes all in real-time), CUBE might be the right fit. We offer two different automated products, RegPlatform and RegAssure, creating flexibility for financial institutions. Enhance your risk manageme
Request a demo to see for yourself how CUBE can help you.