As well as performing historic functions such as Past Business Reviews (PBRs), the assessor should be seeking to reduce risk and facilitate compliance in the future. At EQ, we appraise the use of regulated technology (regtech) and applied specialist knowledge:
- Technology: One report found that companies can realise cost savings averaging at 20% through adopting automation. Remediation recommends technological solutions to automate key processes and to improve outcomes through effective data capture of customer communications and analytical capability to ensure future compliance.
- Human resources: Research by EQ found an increasing number of people wanting to talk to a person, rather than just deal with automated systems. Remediation explores whether sufficient headcount is in the place, with investment where it is needed and that staff have the necessary skills to fulfil their roles.
- Workflow: Disjointed processes can grow organically over time as a business expands, impacting operational efficiency. Remediation seeks to streamline these processes using technology to deliver highly flexible, multiple workflow streams that guide users seamlessly through a prescribed process.
Transformation in action
In the financial sector, businesses are now beginning to realise remediation presents an opportunity for change and transformation and in doing so can deliver significant cost and efficiency gains.
For example, one major UK retail bank sought assistance with the remediation of 500,000 unsecured debts across multiple brands to ensure compliance. Working collaboratively with the bank we were able to advise upon how the project could be used to digitally transform their case management process.
In another example, a retail bank sought to efficiently resolve over 200,000 customer claims for PPI. A stand-alone solution automated and simplified processing into a single workflow, reducing the time taken to action claims from weeks to days.
The automation of workflow saw complaint handling reduced by between 50-65 per cent, allowing the bank to reduce headcount.
Root Cause Analysis then identified a number of business processes that could be improved, leading to a reduction in complaints, increased customer retention and a reduction in the costs associated with corrective action. Streamlining workflow therefore had multiple knock-on effects enabling the bank to achieve cost savings and better customer relations.
What both these examples illustrate is that regulatory remediation adds a lot to a business. It can add value, reduce cost and increase efficiency across the board. It just takes a team who are forward-looking enough to keep a broad view so the potential is never limited.
Remediation conducted in this way is no longer reactive. It realigns operational processes and protects the business against future change while delivering real cost benefits. Remediation can and does now drive transformation across businesses.