Best Financial Services Compliance Software & Buyer’s Guide

I’ve evaluated dozens of compliance software products that financial services are using in 2023. Here’s a summary of the different products available, what each one does best, and a buyer’s guide showing how to select the right software depending on what type of buyer you are (financial institutions, investors, fintech companies, etc).

10 Best Financial Services Compliance Software

Here’s a variety of compliance software in use at financial services firms and what each does best:

1. NetSuite: Best for cloud-based ERP and CRM
2. VGS platform: Best for compliance management across multiple industries.
3. Workiva: Best for collaborative and integrated reporting and compliance processes.
4. Metricstream: Best for GRC and quality management in large enterprises.
5. Resolver: Best for incident management and risk assessment.
6. Hyperproof: Best for automation and risk management.
7. Exclaimer Cloud: Best for managing email signatures and disclaimers.
8. iComply: Best for regulatory compliance in the cannabis industry.
9. Vertex Cloud: Best for cloud-based compliance with advanced analytics and insights.
10. NameScan: Best for accurate AML and KYC screening and due diligence.

---

Expert Pick

---

What Is Financial Services Compliance Software?

Financial services compliance software is a type of software used by financial institutions such as banks, insurance companies, investment firms, and other financial service providers to manage and ensure compliance with regulatory requirements and internal policies.

This software is used to accomplish several tasks, including tracking regulatory changes, managing policies and procedures, monitoring transactions and activities in real-time for suspicious behavior, identifying potential risks and mitigating them, generating compliance reports and audits, and ensuring that employees are trained and knowledgeable about compliance requirements.

By using this type of software, financial institutions can streamline their compliance management processes, reduce the risk of non-compliance, and avoid costly penalties and reputational damage.

Types Of Financial Services Compliance Software

There are different types of financial services compliance software, each with its own focus and set of features.

Some examples include:

• Anti-Money Laundering (AML) software, which helps financial institutions detect and prevent money laundering and terrorist financing
• Know Your Customer (KYC) software, which verifies the identity of customers and ensures that they are not involved in illegal activities
• Trade Surveillance software, which monitors trading activities to detect market abuse, insider trading, and other regulatory violations.

Other types of Financial Services Compliance Software may focus on specific regulations or areas of compliance, such as:

• General Data Protection Regulation (GDPR)
• Payment Card Industry Data Security Standard (PCI DSS)

Some software may also offer broader compliance management capabilities, such as:

• Regulatory change management in general (there’s a lot of overlap in functionality in products that carry out regulatory change management, and many are built into a general GRC software or compliance management software)
• Policy and procedure management (this includes a growing number of contract management and contract automation solutions)
• Audit management
• Risk assessment
• Training and certification management for compliance teams

How To Choose Which Financial Services Compliance Software To Buy

The compliance software you need depends on both the regulatory environment of the industry you’re in and the specific type of compliance management you’re carrying out.

Here’s a breakdown of the common types of buyers so you can identify the types of compliance software that are commonly used in each industry, as well as the main functionality and features to look for when buying compliance software, regardless of industry.

Which type of buyer are you?

Banks, lenders, brokers, and other financial institutions

These organizations are subject to numerous regulatory requirements, such as the Bank Secrecy Act (BSA), Dodd-Frank Act, and Sarbanes-Oxley Act, and therefore require robust compliance management systems.

Common compliance systems in banks and financial institutions include Accuity Compliance Link and Wolters Kluwer ComplianceOne.

Insurance companies

Insurance companies are also subject to various regulations, including the Health Insurance Portability and Accountability Act (HIPAA) and the Insurance Act, that require them to ensure the confidentiality, integrity, and availability of customer data.

Many insurance companies carry out compliance programs using ACL GRC and LogicManager.

Investment firms

Investment firms are subject to regulations such as the Investment Company Act, Investment Advisers Act, and Securities Act that require them to provide transparency to investors, maintain accurate records, and comply with various reporting requirements.

Common compliance monitoring solutions in investment firms include ComplySci and ACA Compliance Group.

Payment processors and other fintech companies

These companies must comply with regulations such as the Payment Card Industry Data Security Standard (PCI DSS) and other financial services regulations that require them to protect customer data, ensure secure transactions, and prevent fraud.

Many payment processors use solutions like Trustwave Compliance Portal and Reciprocity ZenGRC.

Regulators and auditors

Regulators and auditors may also use financial services compliance software to monitor compliance by financial institutions and identify areas of risk and non-compliance.

Financial services auditors often use regulatory compliance software like AuditBoard and TeamMate+ by Wolters Kluwer.

Functionality and features to look for

1. Regulatory compliance management: Any compliance solution should have the ability to monitor and stay up-to-date with the latest regulatory changes and updates, and to automatically flag compliance issues.
2. Policy and procedure management: The software should allow organizations to create, manage, and distribute policies and procedures, and ensure that employees are trained and knowledgeable about compliance requirements.
3. Risk management: The software should be able to identify, assess, and mitigate compliance risks, and provide a framework for tracking and reporting on risk management activities.
4. Transaction monitoring: This functionality first screens transactions and monitors transactions and activities for suspicious behavior, such as money laundering, identity theft, or payment fraud. Common transaction types it should be able to process include P2P, ACH, TRP, and Zelle.
5. Reporting and audit trail: The software should have robust reporting capabilities, the ability to generate compliance reports and audit trails, and provide evidence of compliance to regulators.

Important purchase considerations

1. Integration with other systems: The software should be able to integrate with other systems through pre-built integrations or an API. It’s common to integrate compliance software with accounting and customer relationship management (CRM) software, to provide a comprehensive view of compliance management across the organization.
2. Customizability: The software should be customizable to meet the specific needs of an organization and enable the organization to add or modify compliance rules, notifications, approval workflows, and compliance processes as needed.
3. User-friendly interface: The software should be easy to use and navigate, with a user-friendly interface that allows for quick and efficient compliance management.
4. Consider scalability and flexibility: Choose a software that is scalable and flexible enough to adapt to your organization’s changing needs, including the ability to integrate with other systems, add or modify compliance rules, and handle new regulatory requirements.
5. Security and data privacy: Consider the software’s security and data privacy features, including encryption, access controls, and data backup and recovery.

Other Financial Services Software And Compliance Software Guides

• Choosing Governance, Risk & Compliance (GRC) software
• Guide to compliance software in general
• Financial services software (many of which include compliance functionality)

Key Takeaways

This buyer’s guide for financial services compliance software emphasizes the importance of identifying specific compliance needs, evaluating scalability and flexibility, and considering the user experience when choosing a software solution.

It also highlights important purchase considerations, including cost, regulatory requirements, integration, customization, vendor reputation and support, security and data privacy, and scalability.

By taking these factors into account, organizations can select a software solution that best meets their unique compliance requirements and can adapt to changing needs over time.

---