At Reform, we're introducing a new paradigm we call "Solution as a Service" (SaaS). In a previous blog post, we discussed the challenges posed by legacy systems and the skills deficit. So, how can this conundrum be addressed?

Covering FinCrime Operational Requirements

Regulator's expectations are evolving from a technical compliance ("tick-in-the-box") approach to effective monitoring. Financial institutions should validate and test their FinCrime models to ensure they remain effective.

This shift triggers new processes, significantly increasing the workload. Retail banks, with substantial transactional volumes and a diverse customer base, have a higher need for tuning and threshold optimization. Similarly, wholesale banking, CIB and non-banking FSIs need domain-specific risk assessments. In both cases, legacy systems fall short, and organisations struggle to find the required expertise needed.

The Lack of Supporting Tech Tools

With legacy platforms failing to support these processes, organisations are left using simple tools such as Excel, reporting tools, and Python scripts. However, these approaches lack robustness, effectiveness, and ease of deployment.

The Lack of Skills

Effective FinCrime monitoring creates processes that previously went untested. While external advisors are used to compensate for the lack of internal knowledge, they too fall short, using projects as training for junior resources.

Remediating the Problem

At Reform, we come in from a different angle. We've assembled a team of international domain experts who delivered such projects in jurisdictions where regulators enforced this approach earlier, or at early adopters of a proactive approach.

A formal methodology has been developed. Nimble technology automates quantitative and qualitative assessments. Experts focus on applying their judgment rather than spending time on repetitive, manual work.

This is the "solution" side of the equation: benefits are tangible, with reductions in time and effort exceeding 75%, and effectiveness gains through closing uncovered risks.

Solution-as-a-Service

We then deploy the solution as a service, both for the technology and the project . We roll out the combined tech and advisory proposition in stages:

Project Phase: we use the technology during the project in support of our consultants.

Deployment Phase: we deploy the technology at the client's site together with advisory support.

Handover Phase: we transfer knowledge to the local team and continue to provide advisory support, ensuring the availability of expertise throughout the full lifecycle.

This approach also qualifies as an operational expense, generally accelerating the deployment process.

By adopting our "Solution as a Service" model, organisations can bridge the gap between legacy systems and the new demands of effective FinCrime operations, leveraging both cutting-edge technology and expert advisory services.