How Realta Logic’s Connected Compliance Solution helps organisations remain compliant and competitive
Written by: Guy Mettrick (pictured), Industry Vice President – Financial Services, Appian
High inflation, rising interest rates and concerns about a global recession are not the only challenges impacting business growth. Organisations are also grappling with tighter regulation, escalating compliance costs, and increased risk.
Compliance management cost Australian businesses $250bn in 2020—a 42 per cent increase from 2017—and costs continue to increase exponentially. Finance and insurance institutions and the government agencies that regulate them are especially struggling to meet their increasingly complex regulatory obligations.
Risk, operations, and IT executives are challenged by the volume, complexity, and velocity of risks, which are managed inefficiently across business silos using a variety of methodologies and measurements. In the face of these challenges, executives are making modernising their legacy infrastructure a top priority.
But, to save time and cost, organisations must find better ways of using the resources they already have to achieve this. Ripping and replacing legacy systems is often not an option.
A Deloitte Risk Management Survey found, when asked about their enterprise-wide internal controls framework, 63% of financial services and insurance CROs said that “internal controls optimisation, simplification, and coordination will be an extremely or very high priority for their institutions over the next two years.”
To avoid financial penalties and remain compliant and competitive, financial institutions need to invest in technology solutions that provide them with a single source of regulatory rules that can be easily integrated throughout the business and workflows.
A common problem for financial institutions is they struggle to construct a single source of truth, and this lack of visibility increases their risk of non-compliance. Additionally, their legacy technology solutions have created data silos, which have increased operating costs and risk while reducing efficiency and transparency.
Process automation can solve a number of challenges facing financial institutions struggling to meet their regulatory and compliance obligations.
Turning compliance from a cost to an opportunity
While compliance is often viewed as a financial drain that leads to business stagnation, Co-founder of Realta Logic, Síobháine Slevin, says it can become a business driver. “Compliance is not a hygiene factor; compliance is a source of innovation,” she said. “And risk is not a dirty word. It is something you should embrace.”
Realta Logic’s Connected Compliance solution (powered by Appian’s Connected Onboarding solution) provides a digital regulatory intelligent infrastructure that underpins workflows. It is a way to connect processes, procedures and compliance seamlessly.
“If you have a digital regulatory architecture underpinning your operating model, it allows you to get to the point of decision-making faster,” Slevin explains. “It allows you to get to market faster, and it allows you to design new products. A digital regulatory twin, fulling innovation not curbing it.”
New regulatory technologies, like those provided by Realta Logic, provide key regulatory touch points and way gates to use as part of any application. They offer single source of regulatory rules that increases speed to market, reduces labour costs, ensures compliance, and mitigates risk.
With the latest advanced compliance apps, actionable content can be integrated across systems and processes, providing end-to-end regulatory obligation traceability. Importantly, solutions can scale and incorporate new workflows and compliance obligations across business units and existing systems. This ensures ongoing compliance as new legislation affects the business.
Realta Logic’s Connected Compliance solution operationalises compliance
A vital component of Realta Logic’s Connected Compliance Solution is their regulatory fabric, which applies regulatory knowledge in context to support both business and compliance decisions.
The Realta Logic Connected Compliance solution uses The Appian Platform’s data fabric capabilities, which unify data from multiple systems to enable secure and easy to access enterprise data. This gives financial and insurance companies a 360-degree view of the business, a single source of truth from client portal to servicing.
The solution harnesses process mining, which uses automated intelligence to identify bottlenecks, process non-conformance and inefficiencies. When this is overlayed with a regulatory process mining view, it ensures both the regulatory and business requirements are aligned as part of any solution.
Because many financial and insurance companies are still hindered by inefficient manual processes and cumbersome legacy systems, end-to-end process automation was vital to the Realta Logic Solution. Integrating actionable content into workflow delivers real-time visibility of the impacts of regulatory changes, enabling traceability of regulatory obligations.
The platform creates a total experience, engaging users across both a web and mobile experience. Because the Appian platform is configurable rather than codable, it was also able to integrate a regulatory perspective into the customer journey. This provides a user-friendly interface for internal and external users.