Banks and other financial service providers that operate internationally are facing ever greater challenges: on top of the relentless growth in regulatory requirements and the need to enforce them more systematically, calls for greater tax transparency are also threatening to add to these companies’ compliance burden.
Companies that sell products and perform financial services abroad or for foreign customers have to observe a host of local regulations and restrictions in the various countries they operate in. However, the complexity of cross-border business is also due to the large number of processes and hence different offices and people involved inside the company.
Moreover, the situation is exacerbated by the frequency international regulations change. This increases the danger for financial service providers of accidentally straying into non-compliant behavior, with the considerable legal and reputational risks this entails.
Our technology provides you with a system with which to model and manage cross-border processes. The regulations and restrictions to be observed are represented in the form of decision rules and automatically applied in the specific processes.
The graphic modeling approach for processes and rules ensures maximum transparency and traceability of the definitions made – including with respect to third parties and from an historical perspective. By systematically implementing the “modeling instead of programming” principle, companies can get the relevant in-house business specialists involved in the processes as opposed to just having IT experts do all the work. For example, compliance officers can design and adapt processes and decision rules. This also enables very short implementation and introduction times.
From a technical point of view, our technology permits the integration and management of data from different sources, including legacy applications, thanks to a variety of ready-made standard connectors and adapters.
Typical cross-border scenarios
Depending on the type and scope of a financial service provider’s cross-border business, different processes will have to be defined. Below are a few examples:
Checking for and tracing contract documents in cross-border situations
You will receive prompts for contract documents, related documentation, and written confirmations when they are required on account of the head office, residence, or tax domicile of a customer, or when they become necessary in the course of a business relationship.
Checking the suitability of services/products in cross-border situations
The suitability of services and products for a customer is tested both before and after the conclusion/implementation of a contract. In addition to the actual suitability from the point of view of the customer (e.g. tax considerations) the check also takes into account the financial service provider’s internal guidelines and strategic decisions.
Approving meetings with customers abroad
By means of an approval process, a relationship manager applies for a meeting with a customer abroad, which is then assessed and either approved or refused in a fully or partly automated process.
What are the advantages?
Graphically modeled rules and processes ensure transparency
Rules and processes can be as simple or as complex as you like
Short implementation and introduction times (time to market)
The relevant business specialists in your company can be involved and not just IT experts
Traceable, audit-proof processes
Highly scalable and therefore suitable for processing large volumes of data
Problem-free integration into existing IT landscape