How Morrison Finance Transformed a Leading European Bank's Compliance Framework

Background

A prominent European bank, serving over 10 million clients across 15 countries, faced significant challenges due to evolving regulatory requirements under the European Bank Compliance and Regulatory EnhancementEuropean Union’s financial directives. The bank's existing compliance structures were fragmented and struggled to accommodate rapid regulatory changes, leading to potential risks including penalties and reputational damage.

Problem

The bank encountered multiple regulatory non-compliance issues that triggered investigations and audits. These arose from inadequate compliance protocols and systems that failed to effectively adapt to new regulations such as GDPR, MiFID II, and PSD2. These compliance failures threatened not only hefty fines estimated around €5 million but also the loss of customer trust and potential business opportunities.

Plan

To address these issues, Morrison Finance was enlisted to provide expert consulting services, focusing on overhauling the bank's compliance and regulatory frameworks. The plan included the following strategic actions: 

1. Comprehensive analysis of existing compliance protocols against current regulatory requirements. 

2. Development of a unified compliance framework integrating AI & automation technologies. 

3. Training and development programs for the bank’s compliance teams across all regions. 

4. Implementation of a real-time compliance monitoring system.

Solution

Morrison Finance facilitated the development and rollout of an Advanced Compliance Enhancement System (ACES), which utilized AI to predict and adapt to regulatory changes. ACES integrated data from various bank departments, automatically updating compliance processes in real-time. Furthermore, Morrison Finance initiated a series of workshops and seminars to enhance the skills and knowledge of over 200 compliance officers. 

Results

The implementation of ACES and subsequent training programs brought transformative changes to the bank’s compliance operations.

Regulatory Compliance Accuracy

Improved from 79% to 97% within the first year post-implementation.

Audit Performance

Negative audit findings reduced by 85%. 

Compliance Cost Efficiency

Overall compliance operational costs were reduced by 30%, saving the bank approximately €3 million annually. 

Operational Speed

Time needed for compliance updates was decreased by 50%, significantly enhancing response time to new regulations. 

Employee Competency

Post-training, the effectiveness of compliance teams increased by 40%, as assessed by internal performance reviews. 

Conclusion

By partnering with Morrison Finance, the European bank successfully overhauled its compliance framework, resulting in substantial cost savings, improved efficiency, and higher regulatory adherence. The strategic use of AI & automation positioned the bank as an industry leader in compliance innovation, ultimately bolstering its market standing and client trust. 

* Client confidentiality is of utmost importance to us. Although we have altered their names, the outcomes remain authentic.