Launch new bank products faster with integrated risk management

Gayle Woodbury

Digital technology has made the risk management process more complex. Customers have more options than ever before, and they’re increasingly taking advantage of those options and moving to digital channels, including nonbank entities. As a result, banks are aggressively focused on offering new banking products and services as quickly as possible to attract the next generation of customers.

But in their haste, many banks often make the mistake of not including risk and compliance teams in the early stages of new product development. Waiting too long to bring in risk and compliance teams can delay the release of new banking products or services – or result in fines from regulators.

By taking an integrated approach to risk management that proactively identifies and mitigates potential risks from the beginning, organizations can launch new bank products faster.

To learn more or schedule a consultation and demo, visit the webpage for Crowe IRM-as-a-Service.

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Banks are naturally risk-conscious. So why aren’t risk and compliance teams more integral in the new banking product process?

Risk management is a critical part of launching new banking products or services – and until recently, it seemed like a relatively simple process. In the past, banks were better able to assess risk using manual tools and processes when customers visited branches and filled out paperwork in person.

Technology solutions now are often used to help increase speed, but in their efforts to move fast, banks can actually get bogged down for a number of reasons, including:

Consciousness of risk

Digital channels have introduced new risks related to cybersecurity, fraud, and data privacy. These emerging risks can slow down new banking product deployment as the entire organization learns to adapt.

Lack of coordination

New bank products require an orchestration of functional resources that, more and more, includes third-party resources. If those resources are in harmony, the process is effective and efficient; if they’re not, mistakes can pile up fast and cause delays.

Communication breakdowns

Organizational silos often cause conflict between the first and second lines of defense, which can make it difficult to plan and coordinate new banking product rollouts in a timely manner.

Delaying the involvement of risk and compliance

Bringing in risk and compliance teams at the last minute can make it difficult to launch new bank products quickly and smoothly, especially if potential issues need more time to be resolved. If involving risk and compliance is skipped altogether, the bank might open itself up to significant operational and regulatory compliance risks.

Instead of assuming or hoping they’ve covered all the bases, banks should include risk and compliance in the early stages of the new banking product development process. By embracing risk and compliance, banks can move forward confidently – and quickly – with new product rollouts.

How can risk and compliance teams help mitigate new bank product risk more proactively?

Digital channels might introduce new elements of risk, but that doesn’t mean new banking products and services have to be launched with a slow, uncoordinated process.

The goal of an integrated approach to risk management is to quickly identify potential risks in the upfront processes so that such risks can be anticipated – and planned for – as new bank products are developed and released. Banks can use their risk and compliance teams to strategically identify existing products and services that can be modernized and upgraded to help meet evolving customer demands and maintain a competitive edge.

A centralized risk and compliance platform can help banks assess risk at all levels of the organization. It can also help eliminate communication issues between business and risk teams, help organizations strategically adapt to changes in the market, and deliver new bank products and services that customers want.

Crowe IRM-as-a-Service can help you manage risk to launch new bank products faster

One of the reasons we created Crowe IRM-as-a-Service is to help small and midsized banks streamline communication throughout the organization as they develop new bank products. Crowe IRM-as-a-Service, which provides a centralized hub for managing risk and compliance activity, helps business and risk teams speak the same language so they can explore growth strategies with agility and speed. Crowe IRM-as-a-Service also includes a library of content to help risk management teams identify risks and controls related to new banking products and services. Additionally, Crowe IRM-as-a-Service makes it easier to engage specialized resources when you need them to help assess new and emerging risks for your bank.

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Want to learn more about Crowe IRM-as-a-Service and how it can help you mitigate the risk that comes with bringing new bank products and services to the market? Get in touch – we’d love to chat.

Gayle Woodbury

Principal, Financial Services Consulting

+1 630 586 5325

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