Financial Services Institutions Are Struggling With Regulations and Compliance, Poll Shows
Pegasystems Survey Shows FATCA and KYC Remain Significant Challenges for 2012
Despite stepped-up efforts, financial institutions and insurers are
struggling to cope with the increased demands of new anti-money
laundering and tax regulations, according to a recent survey by
Pegasystems
Inc.(http://ctt.marketwire.com/?release856581&id1311559&type1&urlhttp%3a%2f%2fwww.pega.com%2f)
(NASDAQ: PEGA), the leader in Business Process
(BPM) and software for customer centricity. The survey found that
several organizations are still far away from implementing Foreign
Account Tax Compliance Act (FATCA) regulations, and many don't have
enough visibility into existing due diligence and Know Your
(KYC) processes for customers globally and across lines of business.
In fact, two-thirds of all respondents said they either have little or
no visibility into these key compliance activities. Nearly half, or 44
percent, said they are still learning about FATCA versus actively
implementing solutions to address the law, which shifts the onus of
identifying U.S. account holders for tax reporting and compliance onto
foreign financial institutions and other foreign entities and will
take effect in early 2013.
Global organizations face challenges ensuring compliance to new and
existing KYC requirements that are country, risk, and line-of-business
specific, while ensuring a 360-degree view of customer risk and
minimizing the impact on sales and revenue growth. Organizations that
adopt
between sales, compliance and IT, ensuring auditability and control
with faster on-boarding. Combining rules, process and case management
technology from
organizations to bridge cross-silo KYC data because they can apply
specialized rules, determined by the relevant product, geography, line
of business, risk and channel. Financial institutions that lack
customer-centric KYC
including rules-driven KYC regulatory
run the risk of inconsistent compliance, slow on-boarding and
diminished customer satisfaction. Global institutions are not only
implementing Pega's agile KYC solution to automate and ensure
compliance to current and complex KYC requirements, but also to meet
new regulatory demands such as FATCA and suitability requirements. As
risks and requirements change, institutions need to be able to
implement changes quickly to ensure compliance and manage risk.
The survey was taken at a
co-hosted with
that drew nearly 200 mid to senior-level executives from global
financial institutions to address these industry issues and learn how
the Pega KYC
can be used to ensure compliance and manage future regulatory changes.
Incorporating its patented Build for Change@ technology, the Pega KYC
solution ensures institutions can quickly deploy and easily extend to
handle new regulatory requirements risks, and operations including
suitability, full on-boarding and end-to-end sales.
Quotes & Commentary:
customer due diligence and watch lists has become one of the biggest
regulatory pain points today, especially for large institutions. AML
compliance is evolving and becoming more complex, not only due to
regulatory demands, but also because of the techniques being devised
by institutions to try to deal with that regulation."
and more world-class global financial institutions and insurers
continue to implement rules-driven KYC systems to manage complex,
siloed and highly manual compliance processes that are hindering
efficient on-boarding, time to revenue and customer experience. New
regulatory requirements, such as FATCA, are prompting these
institutions to re-evaluate their KYC programs and technology to
ensure compliance while minimizing the impact on the customer. Many
institutions are addressing the ever-growing regulatory demands
head-on, choosing a unified platform to ensure a global 360-degree
view of customer risk, ensure compliance to existing and emerging
regulatory experience, while improving on-boarding times."
Supporting Resources:
To read more about Pega's compliance solutions, visit:
http://www.pega.com/solutions/by-industry/financial-services/risk-fraud-compliance(http://ctt.marketwire.com/?release856581&id1311583&type1&urlhttp%3a%2f%2fwww.pega.com%2fsolutions%2fby-industry%2ffinancial-services%2frisk-fraud-compliance).
<p> To read more about financial service-focused solutions, visit:
http://www.pega.com/solutions/by-industry/financial-services(http://ctt.marketwire.com/?release856581&id1311586&type1&urlhttp%3a%2f%2fwww.pega.com%2fsolutions%2fby-industry%2ffinancial-services).
To read more about Pega financial services customers' successes,
visit:
http://www.pega.com/solutions/by-industry/financial-services/customer-success(http://ctt.marketwire.com/?release856581&id1311589&type1&urlhttp%3a%2f%2fwww.pega.com%2fsolutions%2fby-industry%2ffinancial-services%2fcustomer-success).
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About Pegasystems Pegasystems, the leader in business process
management and software for customer centricity, helps organizations
enhance customer loyalty, generate new business, and improve
productivity. Our patented Build for Change@ technology speeds the
delivery of critical business solutions by directly capturing business
objectives and eliminating manual programming.
clients to quickly adapt to changing business conditions in order to
outperform the competition. For more information, please visit us at
www.pega.com(http://ctt.marketwire.com/?release856581&id1311601&type1&urlhttp%3a%2f%2fwww.pega.com%2f).
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| Copyright: | (c) 2012 The Associated Press |
| Source: | Associated Press |
| Wordcount: | 720 |
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