Key Points:
- Financial regulations are becoming more restrictive, making compliance software essential for financial institutions.
- Employees may be hesitant to use compliance software because they see it as tedious and offering no direct benefit.
- Creating a culture of compliance and highlighting the importance of each task can drive software adoption.
- Involving first-line managers in the adoption process can foster greater accountability and a stronger compliance culture.
- Distributing compliance updates and information effectively can help employees find answers to their questions.
- Automating manual tasks with compliance software can save time and increase efficiency.
Financial institutions are facing increasingly strict regulations, making compliance software a necessary tool. However, convincing employees to use this software can be a challenge. Many employees view compliance tasks as tedious administrative work that offers no direct benefit to them. They may also struggle to see how their individual compliance roles contribute to the organization’s larger mission.
Another hurdle is the use of multiple disconnected technology solutions to support compliance requirements, which can confuse employees and hinder adoption. To overcome these challenges and drive software adoption, compliance teams need to create a culture of compliance that emphasizes the importance of each task and makes compliance tasks easy to complete.
1. Involve First-Line Managers
Instead of placing all the responsibility on compliance teams, involving first-line managers can foster greater adoption and accountability. By ensuring their direct reports execute compliance expectations, managers can help create a stronger culture of compliance. Compliance software can support this effort through dashboards, automated alerts, and prescheduled reports, reducing the need for one-to-one communication from the compliance officer.
2. Distribute Compliance Updates and Information Effectively
Providing employees with an easily accessible document library or database within the compliance software can help them find answers to compliance-related questions. Including material that addresses common compliance issues, such as gifting policies or approval request procedures, can guide employees and promote software adoption.
3. Automate Manual Tasks Where Possible
Highlighting how compliance software can automate manual tasks and free up time for higher-value work can incentivize adoption. For example, using a platform that automatically ingests executed trades or processes paper broker statements can save time and increase efficiency. This reduces the burden on employees and compliance officers while enhancing the compliance team’s ability to identify and address suspicious activity.
By implementing these strategies, compliance teams can increase the adoption of compliance software, manage organizational risk, and avoid regulatory fines. Ultimately, creating a culture of compliance and highlighting the benefits of software adoption are key to successfully integrating compliance software into financial institutions.
