is a lever of strategic flexibility for banks

It’s no secret that the banking industry is subject to both restrictive and changing regulations. Every bank must be able to identify any changes that occur between the rules in force every day in order to adapt as quickly as possible, without waiting for the actions to meet the expectations of its customers. . This is where monitoring is essential for all banking players. But it is far from serving only this regulatory framework…

A large set of professions that require special monitoring

The banking sector is divided into three sectors: retail banking (also called personal finance), investment banking and the markets sector. In addition to this historical core, the banks have made numerous investments and expanded into other business areas over the years. Thus, banks are taking a position in the construction sector. Most of them have also invested in car rental subsidiaries such as ALD Automotive for Société Générale or Arval for BNP-Paribas. They have also integrated the insurance market, where the regulatory part is also important, as well as the area of ​​asset management. Banks positioned in this way combine a diverse set of businesses and functions, each with unique characteristics. In this regard, monitoring must be integrated: it is at the same time regulatory, competitive and in direct contact with the constant evolution of markets.

A sector experiencing strong dynamics

The regulator watch, as we said, is part of the classic movements. This is important and requires the use of particularly good monitoring tools capable of making the most of exponential and technical data. This monitoring plays a major role in the organizational dynamics of banks. A regulatory change (such as a rate change or even new anti-fraud and anti-money laundering measures) actually leads to significant algorithmic, IT, and promotional investments among teams to adapt to the new framework. These changes are constant, and banking institutions pay particular attention to weak signals they can identify through their monitoring. The goal: identify any changes as soon as possible to structure ourselves internally and thus be ready for D-Day for both private and professional clients. The same applies to the markets: the sector is experiencing strong dynamics, the impact of which has a direct impact on many banking products. Here again, you need to be able to organize yourself collectively in a flexible way.

Provide innovation

This accuracy and detail of information is also important when monitoring certain key sectors for the future. Banks, for example, follow fintech, start-ups and innovations. They are interested in dematerialization of money. They are also very careful about positioning neo-banks, which in turn has led them to offer comparable services. The placement of cryptocurrencies in a globalized universe has always been carefully considered.

In such a context, large banking institutions prove that they are able to adapt to competition and even innovate in record time. You have to understand the level of performance that belongs to them: the turnover of banks is sometimes very sharp, even though we are talking about organizations that sometimes operate in more than 60 countries, with about 200,000 employees… with numerous monitoring measures, these huge institutions day by day they are able to reorganize themselves, even reinvent themselves.

For many years, banks have been continuously looking for new customers, diversifying, rationalizing their activities, relying on subsidiaries with known flexibility. For this, the influence of their monitoring is global and the observation they demonstrate is used in direct decisions. For watch solution publishers, this sector is particularly important and involves both technical and organizational requirements. Because, of course, banks should be offered highly effective solutions, but it is also important to fully understand the meaning of their actions, listen to them and offer solutions that will help them be more flexible.

Arnaud Marquant, KB Crawl SAS Director of Operations.

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