Secrets to Budgeting for BSA/AML and Fraud Software
Best Practices When Budgeting For BSA/AML And Fraud Software
As budgeting season kicks off, it is important to understand your department’s goals for the next year in order to accurately budget for BSA/AML and Fraud software. Are you prepared for the Beneficial Ownership ruling to take affect in May 2018? Do you still need to automate your processes? What inefficiencies do you face on a daily basis?
Once your team has evaluated your needs, be sure to communicate your vision with all of the project stakeholders. Come to the budget committee prepared with reasoning as to 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 a few tips to consider when budgeting for BSA/AML and Fraud software.
Determine the features you will use. Compliance is not a one size fits all approach and your monitoring system shouldn’t be any different. There are vendors that 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 make sure you get a solution that best fits your institution’s needs. Partner with a vendor that can provide a true ROI and that has the ability to explain its value and, potentially, slightly higher price tag. A cheaper solution might be much more expensive to you, your brand, and your financial institution in the end. 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 needs to 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 off of overall averages will reduce the number of 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; they are focused 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.
For more information about Banker’s Toolbox and budgeting for BSA/AML and Fraud software you need to protect your institution, visit our product page or speak with one of our experts.