Why a ‘failure to comply’ could be the most expensive mistake your business could make
It’s been an ‘interesting’ few years for the Nordics’ biggest banks. In June, Sweden’s financial watchdog penalized SEB 1 billion SEK for ‘broad and longstanding financial crime compliance failures’, while in March, Swedbank, the country’s largest lender, was fined 4 billion SEK for the same offence. For Danske, things might be getting even more ‘interesting’, with potential payments of up to 12 billion SEK to authorities and shareholders, according to Jyske Bank analyst Anders Volleson.
Now, whether or not you believe that the failures at these banks were based on badly designed and enforced processes or involved a deliberate ‘blind eye’ to large Baltic state transactions in the interest of profits, one thing is clear. Failing to comply with banking regulations – innocently or otherwise – can get very, very expensive…
These large banks – while suffering a significant hit to both reputation and profits – should be able to survive these failures. Large capital cushions, well above the regulatory requirements, should allow them to pay fines without impacting their business on a long term basis.
No bank wants to fail in their regulatory obligations. But complying with ever more demanding requirements (particularly when it comes to data security), keeping up-to-date with new regulations, all while ensuring that your bank is technically innovative and offers the latest services? From a human resources and cost perspective it’s almost an impossibility.
Fortunately, there’s an answer.
With its strong links to Ålandsbanken, Crosskey is – by default – up to date with all banking and payment regulations. Over the last century Ålandsbanken has developed a reputation for solidity and integrity, with a banking philosophy that is more geared to long term sustainability than short-term risk taking.
Crosskey, as the technical banking integration experts, benefit hugely from this expertise. Together with Ålandsbanken, we have access to the relevant banking associations and can provide ‘Banking as a Service’, where we act as the technical banking experts, while Ålandsbanken have the necessary licenses. This allows us to leverage this expertise to provide the perfect solution for smaller banks – whatever their demands.
Working with Crosskey means complete regulatory peace of mind as standard – we can eliminate risk, since the services that we offer are designed and maintained with compliance always at the front of mind.
If you’d like to learn more about how Crosskey can help your business solve compliance headaches, why not get in touch at firstname.lastname@example.org for more details.