Running To Stand Still? That’s Exhausting – And Compliance Without Strategy

Jonathan Charley

Man jogging --- Image by © Beau Lark/CorbisMost bank staff must feel like athletes these days, trying to react with speed and precision to volatile markets and tough regulatory requirements. Yet despite the best training and intentions, are they – and their organizations – moving forward? Are they leaping towards business goals or running on an exhausting treadmill to tick regulatory boxes?

The good news is that there are practical solutions designed to achieve both, while saving us what we’re all short on: time and energy.

“Embrace what you cannot change” has always been a healthy life philosophy and it’s certainly true in finance. Supervisory bodies are here to stay, and stress testing by banking authorities is the new norm. The frequency with which firms must answer inquiries will only grow. But according to this piece, “A Roadmap For Navigating Stress Testing And BCBS 239,” developing the right core strengths to meet these demands will enhance business performance too.

Consider that 70% of annual IT budgets are typically spent on maintenance – and around half of that on compliance. That’s a whopping 35% of funds directed at fighting fires just to stay in business, leeching vital resources away from where they could be used to drive growth, revenue, and innovation.

The solution? A technology foundation to see organizations through decades of changing regulations and markets – not just tomorrow’s or next week’s stress test.

  • Relieve pressure by moving away from legacy architectures. They aren’t designed to manage Big Data. If data can’t be easily found, and needs to be pulled together manually, you won’t find valuable nuggets buried within it or speedily meet regulatory guidelines.
  • Simplify systems and processes. Should systems meet broad needs or be specific to narrow areas of business? Define your strategy, along with a consistent platform and processes.
  • Gain new capabilities and insights to better serve customers.

Wherever the organization is headed, compliance, business, and technology function best as a high-performance team, overcoming adversity now and delivering enduring advantage.

Gain deeper insight on sorting signal from noise as you chart your enterprise’s digital transformation by reading People Are the Power in the Digital Economy.

Jonathan Charley

About Jonathan Charley

Jonathan Charley is the EMEA North General Manager of Financial Services at SAP. He is responsible for EMEA North Financial Services sharing thought leadership and leading customers through their digital transformation