In the financial services world, the role of risk and compliance teams is crucial. Tasked with balancing marketing creativity and regulatory necessity, these teams are often seen as the final checkpoint before marketing materials can reach the market.
According to Saifr, a survey of 59 U.S. financial risk and compliance leaders shed light on their perspectives regarding their pivotal role and the hurdles they face in content approval and creation processes.
A distinct divergence in how different departments perceive compliance has been noted. The legal and finance sectors deem it crucial, whereas marketing and sales view it as a potential barrier to their innovative efforts.
The workload for these teams has notably increased, highlighted Saifr, a trend observed since the pandemic began. Marketing channels have multiplied, thus amplifying the content that needs vetting. According to a March 2023 survey, 61% of marketers are utilizing more channels than previously, with a significant uptake noted among B2C leaders.
This surge in marketing channels necessitates an increased content output, subsequently burdening compliance review teams. Findings from the survey highlight that 61% of these teams are witnessing a rise in their review volumes. In particular, junior compliance officers and large department teams report an even higher workload, with 76% and 83% respectively facing increased volumes.
Moreover, compliance teams are finding the review process challenging due to the multiple rounds required and the inefficient systems in place. About 56% of leaders stated that their teams need four to five days to review marketing content, with 39% taking six to ten days. The inefficacy of content management systems, which either lack integration or are altogether absent, exacerbates these delays, hindering effective collaboration between marketing and compliance departments.
Interestingly, there seems to be a discrepancy in the understanding of how much content actually undergoes compliance review. While compliance leaders claim a review percentage of 66%, marketing teams report only 59%. This misalignment could stem from the fragmented systems and lack of visibility into the compliance processes.
Despite these challenges, there is a silver lining. Compliance departments are increasingly receiving support from the C-suite due to their expanding workloads. Ninety-four percent of surveyed leaders acknowledged an increase in available resources, which, although unspecified, are enhancing their operational capacity. Furthermore, the adoption of advanced platforms equipped with machine learning and workflow management is helping these teams prioritize tasks and improve their efficiency.
All surveyed leaders agreed that their work is generally viewed positively by their peers in other departments, who appreciate the necessity of adherence to regulations and the internal review processes that ensure the firm’s legal and ethical integrity.
Find the full post here.
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
