Combating new compliance issues in financial services? Focus on using technology to address these three things

Combating new compliance issues in financial services-Focus on using technology to address these three thingsCentered in our nation’s capitol, the buzz from the recent CUNA Governmental Affairs Conference was all about addressing the needs of members – as usual – but this time, it was in the context of meeting compliance demands and alleviating the associated costs.

Being part of the larger technology industry, it always amazes how much of these kind of conversations all boil down to how technology can be applied. Whether it’s regulatory developments such as the Dodd-Frank Act or seeking new ways to reach new members or customers, technology plays a key role in keeping a financial institution compliant.

Some regulations have yet to be written, but financial institutions need to stay ahead of the impending rules. To accomplish this daunting task, technology must do very specific things. From what banks and credit unions are saying, here are the three most important qualities:

  • Auditable processes and content
  • Security
  • Flexibility to adapt to these and other new regulations

Clearly, it’s not just one core system or application that can do all these things to make sure financial institutions are compliant with Dodd-Frank and other regulations. But, here’s the perspective of how an enterprise content management (ECM) system should address these three needs.

Solid ECM solutions offer records management tools. These are in place to control the retention of all associated business records securely organized within a folder interface. Not only does this structure enable faster access to information, but it guarantees consistent and timely management and disposition of documents. This in turn facilitates easier audits, ensures compliance with internal and external standards and prevents costly legal battles.

Gone are the days where an army of people exist solely to find, track and manage paper. Instead, your team can focus on projects and roles that bring value to the organization and make a difference to members/customers.

On the security front, ECM solutions should offer specific encryption features. Encryption provides the tools necessary to meet the Payment Card Industry (PCI) and Data Security Standard (DSS) requirements, while enhancing cardholder data security. When encrypted, keyword values and electronic document files become unreadable if accessed outside of an ECM system.  The result is reduced exposure to risk, reduced costs and protected member/customer information.

Lastly, no financial institution can address the continuously changing compliance demands with a static solution. There’s no question that it’s going to be a long road with evolving compliance requirements. The good news, though, is that it doesn’t have to be too expensive, complicated or resource intensive with the right technology tools in place.

Sam Mazzola

What do you get when you mix a certified Microsoft trainer, five years of experience at a large banking institution and an MBA in Information Systems? The answer – you get Sam Mazzola, Hyland Software's director of financial services solutions. He's been a part Hyland’s team for ten years, specifically focused on financial services. If you have a question about PCI compliance, the latest FDIC regulation or how to battle a seven-footer in the post, contact him at Sam.Mazzola@onbase.com.

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