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RegTech Supply Chain - Process Tools

RegTech Supply Chain – Process Tools and Controls

RegTech Supply Chain - Process Tools

Welcome back to the RegTech Supply Chain Series! This series of posts helps make sense of the RegTech ecosystem; the different sectors, what tools are available, and how they help satisfy compliance requirements and challenges. In the first four parts of the series we looked at onboarding, monitoring, detection and reporting tools.

We now move on to Part 5 where we explore process tools and controls. As we introduced in Part 1 of this series, one way to catalog all of these tools is by business needs, specifically classifying based on time-frames of the use of the RegTech tool.

Let’s review, what are different time-frames across a process life-cycle?

  • Onboarding
    Tools for the first step of signing up a customer. These are often one time or for new cases (ex. ONC, CDD, and KYC).
  • Monitoring
    Tools for analyzing performance on an ongoing basis.
  • Detection
    Tools for flagging potential events, such as risk or fraud. These are occasional in nature but require the utmost of attention.
  • Reporting
    Tools to warehouse, organize and send data to regulators at scheduled intervals.
  • Process Tools and Controls
    Tools and controls that operate over the entire process lifecycle

Process Tools and Controls

Throughout the onboarding, monitoring, detection and reporting processes, compliance is not complete. There’s a necessity for process tools and controls that operate over the entire process lifecycle.

Process tools and controls help support consistency across each process. They help to ensure that the process flows effectively from onboarding, monitoring, detection, and reporting. Controls ensure that all requirements are met across each process, which is essential for meeting compliance requirements and mitigating potential risks. FIs can be assured that they are in compliance with their regulatory obligations across each process stage.

Here are some other tools that are useful in the process tools and controls stage:

Company NameCategoryDescription
ContinuityControls AutomationAutomatic alert generation and workflow solution
EarlyIQControls AutomationVerifies that investors are accredited for Regulation D investments
FlextradeControls AutomationOrder management system
InvestGlassControls AutomationOffers robo-advising solutions
TillrControls AutomationInternal audit automation
ICIXEnvironment, Health, Safety, and QualityHelps retailers manage risk across supply network
IntelexEnvironment, Health, Safety, and QualityManage environment, health & safety, quality and suppliers.
Aesthetic IntegrationFinancial ServicesFinancial algorithm testing
AlgoValueFinancial ServicesValuation tool for fair valuation calculations
ArgosRiskFinancial ServicesBusiness credit risk analytics and software
Cloud9Financial ServicesCloud communication for financial markets
Credit BenchmarkFinancial ServicesRisk management and capital allocation decision making
CreditPointFinancial ServicesCommercial credit risk and collections management solutions
FincadFinancial ServicesDerivatives risk management software and pricing analytics
FinomialFinancial ServicesAutomated investor servicing
KoreConXFinancial ServicesRaising equity capital and simplified shareholder communications
KyribaFinancial ServicesTreasury and risk management solution
Limina Financial SystemsFinancial ServicesAutomated fund management systems
LoanLogicsFinancial ServicesMortgage loan and enterprise lending software
RiskalyzeFinancial ServicesPortfolio analysis and risk alignment platform
Greenlight.guruHealthcareHealth quality management software
Invis Alert SolutionsHealthcareCompliance-based patient safety solutions
Qualtrax Compliance SoftwareHealthcareManaging documentation, automating business processes, and streamlining training management for compliance processes
CheckrIdentification/Background CheckAutomated background screening
NowwecomplyIdentification/Background CheckIntelligent Robotic Process Automation
ThisIsMeIdentification/Background CheckProtects and stores identities online
VeratoIdentification/Background CheckIdentity resolution platform
AlacraIdentity Management and ControlWorkflow applications for client onboarding, client screening, vendor risk management and front office business research
AvoxData (Thomson Reuters)Identity Management and ControlData entity identification data enrichment
Nice – ActimizeIdentity Management and ControlProvider of anti-financial crime, risk and compliance solutions
OpusDatumIdentity Management and ControlFocus on economic sanctions, anti-money laundering, anti-bribery & corruption and financial fraud
TransparINTIdentity Management and ControlMoney laundering and financial crime public risk information
CertraxVendor Risk ManagementInsurance tracking and compliance and management system
PrevalentVendor Risk ManagementThird party risk management for financial services
VenminderVendor Risk ManagementBank and credit union vendor management

As you can see from the variety of vendors and solutions, process tools and controls covers a lot. There are industry-specific vendors, who can help you comply with the regulations for that industry.

When considering what RegTech solutions are appropriate for your company, starting from an industry point of view makes a lot of sense. Each industry will have its own regulations, so you need to exactly what laws apply to you and what the regulators are looking for.

There are various vendors who help mitigate various risk components. For example, background checks help companies ensure that their employees don’t have criminal backgrounds, or that they are eligible for security clearances. Or, systems that check vendors to ensure they are legitimate.

What are the risks that your companies face? The first step to mitigating risk is to understand what you are facing. From this point, you can create strategies and polices to deal with various risks and then look for the appropriate solutions.

What are your company’s plans for growth? RegTech should not just be about simply meeting today’s compliance needs. If that is the case, you will always be scrambling, trying to catch up of any changes in regulations or changes in company focus occurs.

Effective RegTech is about setting up systems that are agile, scalable, and fast. By properly assessing your requirements, anticipating your needs and picking the correct vendor, you can turn what many view as a cost, to cost-saving, or even revenue-generating and competitively-advantageous.

We hope you find this RegTech Supply Chain series interesting and useful. We now turn it over to you, what questions do you have or what issues would you like to resolve? Let us know in the comments which direction you’d like to see this series take.

Disclaimer: Trulioo provides no warranty that the information contained in this document is accurate, up to date or complete and in no circumstance does such information constitute legal advice. Any person who intends to rely upon or use the information contained herein in any way is solely responsible for independently verifying the information and obtaining independent expert advice if required.

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