4 reasons why you should buy (rather than build) compliance effectiveness testing

4 reasons why you should buy (rather than build) compliance effectiveness testing

If you agree with Sheetal Parikh, Deputy Counsel, VP of Compliance at Treasury Prime, and Jason Boova, BSA Officer at Grasshopper Bank that we are moving towards “the supply chain of banking”, and you believe we are now in the world of Compliance 3.0, then the final question for you to consider is whether you buy or build your effectiveness testing solution. 

Here is why companies like Grasshopper Bank, Axiom Bank, Tide and Ramp Network all chose to buy.

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Understanding where you are today

Effectiveness testing in financial crime prevention begins with a solid understanding of your risks and controls. At Cable, our Automated Risk Assessment tool is a great place to start. With no integration required, this tool empowers banks, fintechs and any company operating in the financial services industry to comprehend and manage risks without the hassle of a lengthy implementation process. 

Understand the customer and transaction lifecycle

While an internally built effectiveness testing tool may offer a basic MVP solution, it often lacks essential features crucial for comprehensive testing. Any breaches of requirements or failures of controls need to be surfaced based on an understanding of the complete customer or transaction journey. Getting this right for any new control or customer type can be arduous, but is built in as a fundamental part of our product.

Similarly, once any breaches or failures are found, for a full understanding of your compliance effectiveness, these need to be fed into your risk assessment tool. Cable’s Automated Risk Assessment tool updates based on any issues found, so you always have a downloadable risk assessment that is fully up to date.

Future Proof Technology: Adapting to Constant Changes

Banking and compliance are ever evolving, subject to frequent changes in guidance, regulations, and typologies. Building an effective system internally may seem feasible, but the real challenge lies in maintaining and updating it to stay compliant with the ever-shifting landscape.

Buying a system ensures not just initial functionality but also ongoing maintenance. An internally built system will quickly become outdated without significant ongoing development and compliance expertise. Financial crime risks are not static and neither is Cable’s effectiveness testing platform.

Cable's solution comes with the expertise needed for continuous updates, ensuring that your bank stays ahead of the curve across regulations, risks, and testing capabilities

Network Effects: Leveraging Shared Knowledge

Effectiveness in financial crime prevention is greatly enhanced by understanding risks and typologies. Shared networks offer a valuable resource for banks to tap into a tapestry of real-world insights from their peers. Cable's growing customer base creates a community where banks can benefit from the collective knowledge and strategies employed by others in the fight against financial crime.

A bought solution like Cable taps into shared intelligence across our entire customer base (with no data sharing concerns) to stay on top of new risks. An internally built system won't benefit from these shared insights

True Independence: Ensuring Unbiased Effectiveness Testing

To be fully effective, independence is a non-negotiable aspect of effectiveness testing. 

When building internally, banks face the risk of relying on the same individuals who designed their onboarding controls or transaction monitoring system. True independence is guaranteed with Cable, offering a level playing field for unbiased effectiveness testing.

If you’d like to learn more about the Cable product, please book a demo or reach out to me directly at natasha@cable.tech

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