Context

CBO recently implemented a new Regulatory Tech (RegTech) Software-as-a-Service (SaaS) solution to replace an outdated Transaction Monitoring System for a local bank. This project focused on bolstering the client’s compliance capabilities, specifically in the monitoring of Financial Crime, while simultaneously enhancing operational efficiencies.

Approach

Our team achieved this by identifying vendors suitable for the client’s size and needs, to enable the selection of a strategic, scalable solution that met both business & regulatory requirements. We developed a comprehensive RFP and scoring mechanism, assessed the vendor responses and confidently selected the most appropriate vendor.

With the increased monitoring capabilities provided by the vendor, we collaborated with the client to significantly update to the bank’s Transaction Monitoring framework, redefine the business process and assess impact on people, process and technology.

During the configuration of the new system, we discovered some logic limitations in the supplier platform, which required adjustments to the initial framework.

Rigorous testing always helps us check suitability and iron out any issues, and by collaborating with the supplier and completing a robust Proof of Concept (POC), we found a solution that met the requirements, and aligned with the bank’s risk appetite. The POC also demonstrated that the new process generated meaningful and reasonable monitoring alerts, whilst minimising false positives for end users.

We also managed capacity constraints within the client’s project team by ensuring flexibility in milestones and extending third-party contracts where necessary. Proactive management of these complexities enabled us to successfully integrate the new solution with the bank’s core banking system and deploy the new Transaction Monitoring process successfully.

To empower and build capability within the client’s team, we provided comprehensive training and created detailed documentation for end users, covering compliance, business, and operational aspects.

The CBO tried and trusted approach meant we were able to answer questions, communicate clearly and concisely, and think about a project in a holistic sense throughout every stage of the project.

Outcome

We were delighted that the implementation of this new Transaction Monitoring System was successful and met all the defined success criteria. It has left the bank’s team feeling empowered and capable, with enhanced operational efficiency and compliance capabilities, and improved oversight and change control processes for Transaction Monitoring.

Due to this more robust process, there are more meaningful and reasonable alerts for the end users, and feedback has been very positive overall.