Why Automation Is the Future of Compliance Management

It is no secret that automation will have a key role to play in the way we do business over the next few decades. Automation is not new and the world business however the role that it has played has evolved overtime. Automation is a founding pillar for industrialization. Once we went from having to hand make everything and could instead make things through machines, our capabilities increased exponentially. What is important to understand here is that automation search 2 roles and both the roles will be important for compliance management.  

The Benefits That Automation Delivers  

When we talk about automation most people think about how it will help companies save money by replacing workers and employees. This is not necessarily, a false statement, because increasing automation will result in the business regarding fewer employees to do the same work. However, what this statement really misses is the fact that simply replacing employees is rarely the reason businesses pursue automation. You can understand the true reason businesses prefer automation by looking at the results of automation at the beginning of industrialization.  

It is true that once machines were created that could produce complex products, the number of products that a company could make increased exponentially. Whereas previously every product was made with hands and took a lot of time, machines could continue working day and night producing the exact same type of thing with the exact quality. As important as it was to be able to create more of things, it was much more important to be able to create the same thing with the exact same standard of quality repeatedly.  

That is why industrialization did not just bring to us cheaper products. It also brought us much better products that have better capabilities and last for a longer time. Almost all the major vehicles and appliances that we use in our daily lives contain thousands of machined parts which need to be accurate to a ridiculous degree to function correctly. We are talking about tolerances less than millimetres. This will simply impossible if every part of this product was still being made by hand. In summary, automation in factory processes did not just result in lower costs but it also resulted in much better quality of the work being done.  

What the Automation Era Would Look Like for Compliance  

We can expect something like happen in the domain of compliance management. It is true that we will see that banks and other financial institutions will require a smaller team to manage more compliance issues for more, but we will also see banks and financial solutions being able to do things they were previously never able to do when it came to compliance management. Some of the most exciting features include: 

Automated Monitoring  
The most exciting and most obvious benefit that automation will help in the world of compliance management is that it completely automates the monitoring of the compliance framework. This means that computer systems will be monitoring each process that goes on throughout the organisation and ensuring that all the steps required for compliance have been followed. This is something that was simply impossible previously, as we cannot expect humans to go through each process and document in the organisation. 

Real Time Analytics  
Real time analytics provide another opportunity for banks and financial institutions to understand compliance in a way they have never been able to understand it before. Since the compliance monitoring is being done automatically, the complex management framework has real time metrics and statistics is related to compliance. This means that the board of the organisation now has a real time view of how compliance is being managed across the organisation. There is no longer a need to depend on outdated compliance reports to understand where the organisation stands when it comes to compliance.