Jun 12, 2024

10 Criteria for Choosing a Compliance Automation Tool

There is (finally) a growing number of compliance automation tools hitting the market and helping organizations globally. Saying that, not all tools are effective just because they claim to automate something that has previously been an almost entirely manual process.

In this blog, we break down the key criteria for choosing a compliance automation tool that truly works. Consider this your trusted checklist for finding the right compliance tool (and yes, spektr might be the answer you’ve been looking for).

1. End-to-End Compliance Automation

At its core, a compliance automation tool must effectively automate compliance. Automation itself is insufficient if it is not done well. So, what does good automation look like? Exemplar compliance automation will maximize resource efficiency, slashing unnecessary costs without compromising on performance. The other 9 points below also testify to what good automation looks like.

2. Scalability

Your needs are bound to evolve. Therefore, it is important to choose a tool that scales seamlessly with internal and external data sources, supporting global expansion by integrating with a diverse range of services for different markets.

Look for tools that can handle increasing volumes of data and users, as well as support global expansion by integrating with a diverse range of services for different markets to remain compliant across various jurisdictions

3. Integration Capabilities

Vendor integration is paramount for seamless data exchange between key systems and stakeholders. Connecting your processes with a range of certified third-party vendors will enrich your client profiles and contribute to efficient alert resolution (also touched upon a little further down). Practically, this means you should look for tools that offer robust API support, having the ability to connect with a wide range of third-party services.

4. Configurability and Flexibility

Automation is by no means the antonym of customization; in fact, both can (and should) work very well together. A strong compliance automation tool will ensure customization of processes for sharper decision-making, secure tracking, and easy adaption to unique needs.

A strong compliance automation tool will offer extensive configurability options, allowing users to customize workflows, risk parameters, and monitoring frequencies for sharper decision-making, secure tracking, and effortless adaptation to unique needs.

5. Instant Alert Resolution

To keep up with any unexpected changes of profile information, businesses will want to set up alerts for tracking purposes. spektr’s Slack integration helps with this, ensuring you are just one notification away from identifying and responding to these changes as quickly as possible.

6. Ongoing Monitoring

Compliance doesn’t have a start or end date, it is an ongoing journey that is constantly unfolding. This requires a tool that allows users to stay one step ahead.

Innovative features, such as loops, facilitate end-to-end automation of risk journeys. So, what are loops? Loops, a distinguishable feature of the spektr platform, facilitates continuous compliance automation by automatically re-verifying customer information when risks or alerts pop up. By connecting risk assessment and monitoring, users can promptly address any issues, ensuring swift and responsive compliance measures.

7. User-Friendliness

When weighing the pros and cons of different compliance automation tools, consider their ease of use. As great as a tool may be, if it is overly complex and can only be used by a limited number of users, it might not be the most logical solution in the long-run.

spektr offers a highly intuitive, no-code platform that empowers compliance, operations, and product teams to build customized workflows without straining internal IT resources. So, just one platform to perform all of your compliance tasks, end-to-end…it really doesn’t get much more user-friendly than that!

8. Targeted Compliance Automation

No matter the use case or industry (crypto, financial services, payments, investment platform brokers etc.) automation should be targeted (linking back to the idea of configurability and flexibility).

Also very much linked to configurability and flexibility, targeted automation makes sure to adapt to changing business needs. Organizations are not static, meaning that upfront customization is not enough – a proficient tool is able to continuously evolve in real-time with changing strategic objectives.

9. Audit Trail

Robust and reliable audit trails are imperative when it comes to your ongoing due diligence process. That’s why a sturdy compliance automation tool should feature comprehensive logging capabilities and thorough user access controls to restrict and monitor who can view or modify sensitive/critical information. Without this, the integrity of audit trails risks being compromised.

10. (Data) Security

A strong compliance automation tool will prioritize data security through a multi-layered approach. Implementing advanced encryption standards is crucial for safeguarding data. Furthermore, strict access controls ensure that only authorized users have access to sensitive or critical information. On top of this, regular security audits conducted by independent experts help to identify and address potential vulnerabilities before they can be exploited. Also, robust data backup and recovery procedures are essential to guarantee the integrity and availability of data – ensuring business continuity even in the event of a data breach or disaster.

Final Comments

There you have it! These 10 criteria should be non-negotiable when it comes to choosing a compliance automation platform. Something important that we should add is that you can find a tool that offers all of these 10 criteria without breaking the bank…enter spektr. spektr automates your compliance tasks without sacrificing on functionality or hurting your budget.

So, if you read this and thought, ‘Hey, I’d like to learn more about a platform that offers all of this’, feel free to book a chat with one of our in-house experts! We’d love to get you up to speed with spektr’s industry-leading solution.


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