A lack of automation and properly integrated technology is leading some asset managers to walk away from clients they fear may be a compliance risk.
According to Janusz Lorenc, chief executive of fintech Metrosoft, this is not because the risk is too great but because the firms don’t have the right systems and set-up to properly manage that risk.
In a video interview Lorenc tells FundsTech editor Nicholas Pratt how the compliance process could be the perfect use-case for the adoption of agile software development.
The onboarding process has become more complex in recent years with extra anti-money laundering and counter-terrorist financing checks to be carried out on an ongoing basis.
Unfortunately a number of firms manage these processes in silos instead of a joined up approach that would give a better picture of the client and a better understanding of the risk.
However, says Lorenc, the move to agile development is not just a technology issue but a question of mindset.
“In order to be able to use this methodology, you need to have trust and transparency between vendors and clients,” he says. “It involves a change of mindset, away from just fulfilling contractual agreements and towards common objectives.”
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