Manage Risk And Compliance Associated With Financial Services

Manage Risk And Compliance Associated With Financial Services

Last Updated on February 14, 2024 by Nasir Hanif

The risks and compliance associated with financial services can be managed with the help of financial data aggregation companies. Of course, as the market trends show, the differences in risk functions in banks or in the financial sector will be drastically different a few years from now, so risk management should start right now.

Due to technological advancements, the next 10 years will suffer a bigger transformation than the last decades combined. Technology adoption at a large scale also needs to be followed by regulations created to protect the data being managed from cyber threats and inappropriate practices, especially when this data is sensitive for the end customer.

Financial services must have compliance and risk management as a business goal, and the actions to ensure it must be part of the corporate data aggregation strategy. Regulatory changes happen fast, and companies must be prepared to react at the same speed to ensure zero disruptions and errors. Problems can affect all areas and departments, so risk management should be faced as an enterprise-wide solution.

When talking about financial data aggregation specifically, a process that is crucial to provide the best customer experience possible, the services are designed to be personalized – which means that risk management and compliance should be considered in the entire flow.

The banking crises made the price of risk management and regulatory compliance increase significantly, as the need for investing in new technologies along with hiring and training employees also grew. Dealing with financial services, in general, made companies go after data, software, monitoring, risk management, access management, and so on. Some went straight away after financial data aggregation companies, which can prepare the business for today and make them ready for future regulatory compliances.

Data Aggregation for Financial Services

Data aggregation is the process of compiling large amounts of data from different sources and organizing it into one single format, that will be unified and summarized to be easier consumed. This way, researching through the data and making the decisions will be much faster. 

Financial data aggregation is the same, but the information compiled from different sources are from accounts, like bank accounts, credit card accounts, investments, loans, and any other financial account that has data that can be extracted, and everything is shown and unified into one single place. 

The risks involved in financial information, having a data aggregation company looking out for the process is not only much more convenient but also much safer. Data aggregation for financial services is not the future, it’s the present. 

The financial market can only benefit from data aggregation to manage risk and compliance. The process offers a convenient solution to customers, employees and users, and also helps in the decision-making to act on the root of the problems and avoid them happening again – and if they do happen, it’s easier to trace what happened and where it came from. 

Data Aggregation Companies Are a New Approach Towards Compliance

When working on risk management, compliance and regulations, the common practice was to identify the issue, develop or purchase the solutions to solve it. But this process made companies lack the entire view of the problem, which resulted in extra costs when regulations got revisited over the years. 

This led to a step back into the process to work on solutions that could diminish the risk exposure, while making it prepared for future changes and turn it into an even more integrated system that would have everything in one place, without the need of having multi-technologies and multi-partners to make the information flow between systems located in different places that could easily risk the information and have it leaked.

To manage any compliance risks while keeping an integrated approach to their data and systems, the solution is to work with data aggregation along with compliance effectiveness – this is the way to reduce not only the issues, but also costs and the amount of effort required to make the process run smoothly. 

The Best Data Aggregation Company for Financial Services

The Emissary data integration tool is easy to implement, but it’s a powerful platform to reduce risks and help on regulatory compliances, making the time spent on data more strategic and productive. 

With the use of artificial intelligence and machine learning, the platform will integrate all components of your data management systems. And when it comes to the financial sector, Emissary can be used as the main data management tool.

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