Secrets to budgeting for BSA/AML and fraud software
Best practices for creating BSA/AML and fraud software budgets
Take a moment to consider your best-case scenario budget and what steps bring you closer to what you need.
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Best practices when budgeting for BSA/AML and fraud software
As budgeting season kicks off, it is essential to understand your department’s goals for the next year to accurately budget for BSA/AML and Fraud software. Do you still need to automate your processes? What inefficiencies do you face daily?
Once your team has evaluated your needs, communicate your vision with all the project stakeholders. Come to the budget committee prepared with reasons why your team needs to budget a certain amount for your BSA/AML and Fraud software. Selecting a new solution can be stressful, but making the expectations of each person/department clear before a vendor is selected has proven to make a smooth transition. Below are some tips for budgeting for BSA/AML and Fraud software.
Determine the features you need. Compliance is not a one-size-fits-all approach; your monitoring system shouldn’t be different. Some vendors take this “bundled price” approach. An all-in-one solution may sound nice, but don’t you want your system to be tailored, specifically, to what you will be using and not what your vendor wants to sell to you?
Cheaper isn’t always better. We get it…budgets are tight, but you want to ensure you get a solution that best fits your institution’s needs. Partner with a vendor that can provide a true ROI and explain its value and, potentially, a slightly higher price tag. A cheaper solution might be much more expensive to you, your brand, and your financial institution. If your institution incurs substantial losses or fines, you may end up paying many more times as much as your ideal BSA or Fraud software would have cost.
Time is money. Your partner should provide efficiency; it should not add to your already demanding workload. Your solution must be easy to use, tailored to your institution, and completely transparent. You shouldn’t be bothered with trying to understand your vendor’s proprietary algorithms before you even get to the investigation of suspicious activity. Partnering with a company that tailors the solution specifically to what you encounter and not based on overall averages will reduce the hours spent weeding through the dreaded false positives.
Make sure to get the support you need. You want to partner with a company that is as invested in your success as you are. If a vendor wants to charge you to support the product they built, they aren’t focused on your success but on their bottom line.
Budgeting for BSA/AML software doesn’t have to be a chore. Simply focus on the needs of your team and communicate with key stakeholders to get a BSA/AML and Fraud software that will protect your institution from losses and fines.