The most basic question affecting any organization’s development strategy is whether to buy or build operational solutions. Nowhere is this decision more critical than in the area of AML Compliance. Any time there is an element of regulatory risk, there can be a tendency amongst organizations with proficient IT departments to go the “build” route, under the assumption that in-house effort will provide a tailored solution for the business.

As discussed in the FINCAD report “Build vs. Buy – The Risks and Considerations for System Implementations”, there are many factors an organization must consider to understand the trade-offs of either approach. With developing regulatory software (as with other areas of niche expertise), the fundamental question is not whether a financial institution can build sufficient compliance tech, but more so should they?

ROI considerations aside, financial services industries need to focus their product strategy on developing solutions that delight their customers. Similarly, Regtech companies specialize in understanding the impact of compliance regulation, and are always enhancing their products to maintain currency while providing features that minimize friction in the customer due diligence (CDD) process. Regtechs have the advantage of servicing numerous compliance departments, providing both the benefits of best practices across industries, as well as offering customization options to meet the specific needs of any business.

Interested in how your organization can increase verification rates and improve your online acquisition of new customers in a safe and compliant manner? Securefact’s solutions to digitally onboard individuals and businesses provide you with Confidence in Compliance as you grow your business.