Shield - The New Compliance Normal for Financial Firm

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The New Compliance Normal for Financial Firm
COVID-19 accelerated the migration of financial
firms to the cloud
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This is the first in a series of blog posts
dedicated to the new compliance normal. RegTech
companies have joined the conversation to talk
about how regulatory compliance regarding market
abuse has shifted since the pandemic began.
During the research for this post, it was
apparent that many of the firms addressed the
shift to cloud as a possible solution to the
current challenges that the pandemic brought with
it. Perhaps the greatest effect of COVID-19,
beyond the catastrophic loss of life and
financial turmoil, is the migration to the cloud
by financial firms. Whereas digital
transformation was a concept (pre-COVID), it has
emerged as the new business imperative.
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Banks have been slow to embrace change and to
adopt new technology overall, some are arguably
fully resistant to the idea of migrating
financial services information and services into
the cloud. But the new compliance normal is
forcing a shift. Banks, called out for their
resistance, cited regulatory ambiguity as the
primary reason for their reluctance to embrace
the cloud yet it is now regulatory compliance.
Banks have been slow to embrace cloud computing
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According to Lysis Financial, select firms,
particularly those in Ireland, who were already
prepared with effective and tested business
continuity plans fared well and were almost
unaffected. Cloud-based infrastructures have
enabled firms to be resilient, compliant and
minimally impacted by the pandemic.
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The benefits of a cloud-based compliance solution

• Larger banks have offered data that suggest a
  cloud-based strategy affords them about a 25
  savings on IT infrastructure costs. Collectively,
  thats about 15 billion per year.
• However, mid-size and smaller banks may not be
  seeing the same cost advantages some even
  suggesting that their costs are now higher.

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• According to FIS, Managed Services in the cloud
  are not just less costly but also more accessible
  even in adverse conditions.
• It has never been more apparent than on-premise
  compliance software brings along significant
  risks. The ability to conduct remote
  installations and upgrades is becoming a
  requirement.
• Cloud-computing enables multi-channel
  relationships with customers at every step and
  for every service from data storage and transfers
  to the delivery of just-in-time services.
• Firms should be looking to the Cloud for
  adaptable solutions that can be used at-scale to
  meet business needs as they fluctuate during
  uncertain times.

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The future came quicker than expected
COVID-19 has brought the future to the present.
The new compliance normal has arrived. Alyne
states, Smooth future-orientated operations may
be extremely challenged if the organisation
continues to rely on on-premise software. There
is no better time than now for institutions to
adopt scalable, cloud-based solutions. Gain
insights and knowledge at The New Compliance
Normal Hub and contact us if your organization
would like to contribute to the conversation.
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CONTACT US
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