Did you follow the news stories from last week’s World Economic Forum? 2500 of the world’s top bankers and financial managers gathered in Davos, Switzerland, where they spent a lot of time discussing the challenges posed by increasing regulatory scrutiny. The big financial institutions are reluctantly bracing themselves to cope with more oversight.
I’m ambivalent about this. I hate the idea of being burdened with additional charges and fees, which is how some big financial services organizations will get consumers like me to pay their costs of compliance. But I like the other potential outcome, which is that the banks may be compelled to seek out ways to operate more efficiently.
I hope the moguls who met last week in Davos are giving some thought to improving operational efficiency within their organizations, because more regulation is certain to bring more content control challenges. After all, the majority of non-compliances are the result of poor documentation or inadequate training.
To keep on top of all this regulatory change, the banks will need to become much more agile. They’ll have to develop new processes quickly and efficiently, and update and revise their documentation to keep pace with the changes. They’ll also have to become black belts at training and supporting a workforce of highly skilled and adaptable employees.
When they’ve hired and trained great people, implemented the best technologies available, and learned to create and manage clear, user-focused content, who knows? Maybe financial organizations will drive down their costs to the point where we'll see some of those unwelcome fees disappearing from our monthly statements. As somebody in a baseball movie once said, “It could happen.”
For more information about the compliance-related challenges facing the financial industry, read our free whitepaper, Getting Compliance Under Control.