Regulations are like traffic lights. They are there for our protection but they can, nonetheless, slow down our momentum. If you work in the banking industry especially, you may have a better understanding of how regulation weighs heavily on financial organisations.
From edicts on corporate governance to CCAR, there are plenty of rules banks need to follow.
This presents a challenge in the form of rising costs. In fact, research shows that banks spend over $270 billion a year on compliance, which is equal to 10 per cent of their total operating costs. Moreover, the cost of regulatory compliance is set to double by 2022.
Banks need a solution that can make regulatory compliance a more cost-efficient part of their work. This is where SAS banking analytics can help finance organisations. In this post, we look at why financial analytics platforms are the solution banks are looking for.
Regulatory compliance causes data to balloon in volume.
When regulators pass a new law, it generates a new wave of corporate data. A wave that upends current data governance, data collection, and reporting mechanisms.
When this happens, banks are in a lurch. They have to implement new procedures, policies, and teams to ensure they are complying with the law.
There is also the issue of data management.
New regulations expand a bank’s data lake. Sounds good, right? Well, not if you have the wrong tools in place. Without the right tools, banks can’t keep up with the volume of new data or make sense of it.
Banking data is voluminous and complex because of its different sources. Data sources include transactional data, operational data, reference data, and security data. There is also the fact that each team manages its own branch of data.
Analysts must work with these different types of data to meet compliance regulations, which is a slow, painful procedure. Traditional analytics platforms need several data analysis cycles to complete operations, prolonging analysis and driving up costs.
What banks really need is an analytics platform that can help them adapt to new regulations quickly and reduce compliance costs. The ideal data analytics solution will reduce compliance costs and improve core operations.
Sounds complicated, right? Well, not if you have the right data analytics solution, which is why SAS banking analytics is an invaluable investment.
SAS banking analytics can help you resolve several compliance-related issues. It can meet the needs of banks and other large corporations, making it better equipped to handle the large volume of data stored in their databases.
SAS analytics uses technology like AI, machine learning, and cloud computing to help you optimise certain data collection and analysis processes to make compliance more efficient.
Besides optimising data collection procedures, banking analytics from SAS can optimise reporting procedures. You can create an infrastructure that merges data modelling, measuring, and reporting to better manage risk and regulatory management.
SAS analytics platforms support compliance for most regulatory risks, including regulatory capital, and liquidity risk. They can reduce the length of analytics cycles, improving operational efficiency. By speeding up processing time, we can also reduce the cost of compliance.
Additionally, data management becomes more efficient because it’s much easier for research teams to store data and derive useful information from it.
Along with improving regulation, banks can also improve governance with analytics. SAS analytics provides a risk profile that covers the entire network of the organisation. This ensures a level of transparency, which is difficult to manage using other means.
Better transparency makes it easy to meet regulatory compliance demands and manage internal risk, which can avert potential disasters.
As the banking industry faces tighter regulations, data analytics platforms are the key to helping the industry navigate the complex regulatory environment.
That, however, just scratches the surface of what SAS analytics platforms can do.
SAS solutions can also resolve other problems the banking industry faces, like fraud. Moreover, banking analytics can help banks improve customer service by turning it into a more personalised experience. If used properly, SAS banking analytics can resolve many of the issues the banking industry faces, especially the burgeoning cost of regulation.
To learn more about SAS analytics and what it can do for different industries, visit Selerity.