Dodd Frank Compliance – Leveraging Business Intelligence for Business Transformation

The Dodd-Frank act has stirred emotions as well as opinions from those both inside and outside of the financial services space. While there are still ongoing debates on the merits of the legislation, there is perhaps more consensus on the fact that the rules have been implemented in a less than optimal manner. However, at this point it is clear that the rules are here to stay — at least for now. As financial entities plan and implement their answers to the regulations, it is worthwhile to take a look at the benefits these regulations potentially have for business transformation.

For businesses, thought leaders have offered more of management theories than the rules and regulations the government has managed to place inside the Dodd-Frank act. That being said, ensuring continuous improvement is one such theory that is currently in favor and widely utilized among many industries. Developing a feedback mechanism that uses business intelligence to expose both strengths and weaknesses can help ensure that the organization continuously improves.

To be compliant with Dodd-Frank, an organization’s external business conduct requirements should examine their client onboarding process by benchmarking themselves against competitors, as benchmarking is another widely accepted tool in management theory. These benchmarks should be target values in the performance dashboard. These targets can then be compared against the actual results captured by the onboarding solution, which should be able to look at the onboarding process as a series of sub-processes that are typically assigned to various teams or individuals. Even these sub-processes can often be broken down to an even more granular level, all of which can then also be benchmarked. This type of information can be captured through case management system’s enhanced reporting and dashboard capabilities.

The true value of business intelligence is to provide information that can used to improve a process. In this case, by breaking down the client onboarding process, an organization can identify bottlenecks, inefficiencies and continuously improve programs. Since financial institutions, defined and registered as swap dealers, are required to comply with the Dodd-Frank mandated business conduct regulations, consideration of a business intelligence component should be a key part of the decision making process.