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September 12, 2024
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How to implement Salesforce’s regulatory compliance modules for banks

Everything you need to know about Salesforce’s regulatory compliance modules in banks. From necessary steps to potential challenges.
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In the financial sector, maintaining regulatory compliance is not just a matter of meeting standards; it's a significant financial burden. Large organizations report that the average cost of compliance is about $10,000 per employee. For global banks and major brokers with over 20,000 employees, this translates to an astounding annual expenditure of more than $200 million. Such a hefty price tag underscores the critical need for effective compliance strategies.

Despite the high costs, banks face ongoing challenges such as increasing regulatory complexity and technological obstacles. On average, financial institutions must navigate over 200 new or updated regulations every working day, adding to the pressure.

Salesforce offers a solution to these challenges, providing tools that help banks streamline their compliance processes and manage regulatory requirements more efficiently. This article, written by Noltic’s experts with extensive experience collaborating with financial institutions, explores how Salesforce’s regulatory compliance modules can address these issues and support your institution’s compliance efforts.

How Salesforce can help your bank overcome regulatory compliance challenges

Unlike many other solutions, Salesforce provides all the essential tools for financial and banking institutions. In addition, it offers built-in features that make it much easier to meet regulatory compliance. Let’s take a closer look at them below.

Know Your Customer (KYC)

Banks are obliged to verify the identity of their clients to prevent fraud and ensure they are not engaging in illegal activities. Organizations must collect and verify various forms of identification and personal information, which can be time-consuming and complex. The following Salesforce tools can help with KYC compliance:

  • Salesforce Customer 360
  • Einstein Analytics
  • Salesforce Shield

Anti-Money Laundering (AML)

AML regulations require banks to detect and report suspicious activities that may indicate money laundering. Monitoring transactions and generating alerts for unusual activities can be overwhelming with large volumes of data. Banks can use the following Salesforce tools to accelerate the AML compliance process:

General Data Protection Regulation (GDPR)

Banks must comply with GDPR requirements to protect customer data and ensure privacy. Regulation includes managing data access, handling data subject requests, and ensuring data security. Salesforce helps to automate these tasks with the following features:

  • Salesforce Customer 360
  • Salesforce Shield
  • Privacy Management

Payment Card Industry Data Security Standard (PCI DSS)

Banks must adhere to PCI DSS requirements to secure payment card data and prevent breaches. Banks are required to maintain a secure network, implement strong access control measures, and regularly monitor systems. You can facilitate these efforts with Salesforce tools:

Dodd-Frank Compliance

The Dodd-Frank Act requires banks in the US to adhere to strict regulations related to financial stability and consumer protection. Financial institutions must maintain transparency in financial transactions, manage risk, and adhere to new reporting requirements. Tools for automating compliance processes with Salesforce:

  • Salesforce Financial Services Cloud
  • Einstein Analytics
  • Salesforce Shield

A guide to implementing Salesforce’s regulatory compliance modules for banks

Implementing Salesforce’s regulatory compliance modules involves several key steps:

Conduct compliance assessment

  1. Review your bank's regulatory standards, such as KYC, AML, GDPR, PCI DSS, and Dodd-Frank.
  2. Evaluate your current compliance processes and identify gaps or areas needing improvement.
  3. Based on your assessment, set specific goals for what you want to achieve with Salesforce’s compliance modules.

Choose the right Salesforce modules

Salesforce modules are components that can extend the functionality of the base version to align with your business goals. For instance, if you want to boost sales or enhance customer experience. Regarding regulatory compliance, there are several options to choose from.

Salesforce Shield

This tool is crucial for ensuring data security for banks and maintaining compliance with regulations such as PCI DSS and GDPR. It helps banks safeguard sensitive customer information and monitor system activities to detect and address potential compliance issues. Salesforce Shield features include:

  • Encrypting sensitive data at rest and in transit to protect against unauthorized access.
  • Monitoring user activity and system performance, helping detect suspicious actions, and maintaining audit trails.
  • Audit trail management with Salesforce by tracking changes to data fields and maintaining a history of modifications. 

Salesforce Financial Services Cloud (FSC)

This module supports the specific needs of financial institutions, including KYC and AML compliance. It centralizes customer data, automates compliance processes, and offers tools for effectively managing regulatory requirements. Here is how you can accelerate your compliance processes with Salesforce FSC:

  • Managing customer profiles and verification processes, automating the collection and verification of identity information for KYC regulations.
  • Monitoring transactions and identifying suspicious activities to comply with AML.
  • Managing customer interactions and tracking compliance activities in one centralized hub.

Einstein Analytics

This is an unmatching helping tool for banks to analyze large volumes of compliance data. It helps predict risks, track compliance metrics, and create custom dashboards for real-time monitoring and regulatory reporting with Salesforce. Here is what you get with Einstein Analytics:

  • AI Data analysis and prediction of potential risks or compliance issues.
  • Customized dashboards to monitor compliance metrics and visualize data trends.
  • Insights into compliance-related data to track performance against regulatory standards.

Salesforce Privacy Management

This module is essential for banks to comply with data protection regulations like GDPR. It simplifies handling customer data requests and ensures that consent and privacy preferences are managed effectively. Here is how:

  • Facilitates the management of customer requests related to data access, deletion, or correction in accordance with GDPR.
  • Tracks and manages customer consent preferences for data processing and marketing activities.
  • Helps generate reports to demonstrate compliance with data protection regulations.

Salesforce Customer 360

A complete view of customer profiles with consolidated transaction histories and reports accelerates KYC and AML compliance efforts. This tool offers comprehensive features:

  • Integrates data from various sources to create a comprehensive view of each customer’s interactions and history.
  • Connects customer information across different systems and departments, ensuring a single, accurate source of truth.
  • Provides detailed insights into customer behavior and needs, supporting better decision-making and compliance management.

Migrate or integrate the necessary data

  1. List all the data that needs to be moved or connected to Salesforce.
  2. Align your existing data to Salesforce fields to ensure compatibility.
  3. Use Salesforce Data Loader or other tools to integrate data from legacy systems into Salesforce.
  4. Connect Salesforce with external systems using APIs or integration tools for real-time data synchronization.

Customize and configure your Salesforce version

  1. Define how Salesforce needs to be customized to meet your compliance needs. Set up custom fields, objects, and page layouts.
  2. Adjust Salesforce settings according to your compliance requirements, such as setting up user roles and permissions in FSC, workflow rules, and validation rules.
  3. Thoroughly test customizations and configurations to ensure they meet your compliance goals and function correctly.

Automate your workflows

  1. Determine which compliance processes can be automated, such as risk assessments or compliance reporting.
  2. Use Salesforce Process Builder, Flow, or other automation tools to create rules and workflows.
  3. Test automated workflows to ensure they work as expected and make necessary adjustments to maintain real-time compliance.

Implement a change management plan for your employees

  1. Create materials to educate employees about the new compliance processes and Salesforce tools.
  2. Provide training to all relevant staff on how to use Salesforce’s compliance modules effectively.
  3. Offer ongoing support and address employees' issues or questions during the transition.

Integrate external data sources

  1. Determine which external data sources provide current regulatory information relevant to your bank.
  2. Use Salesforce integration tools or APIs to connect with these external sources.
  3. Regularly update your data integrations to ensure they provide the latest information and adjust as necessary to maintain compliance.

What you can achieve after successful Salesforce’s regulatory compliance modules implementation 

Implementing Salesforce’s regulatory compliance modules offers several significant advantages for banks, facilitating compliance with regulatory requirements and increasing operational efficiency.

Accelerated workflows

Automating compliance processes speeds up workflows by eliminating manual processing, which reduces the time spent on repetitive tasks. This automation minimizes the risk of errors related to manual data entry and processing, allowing employees to concentrate on more valuable tasks while Salesforce’s automation tools handle routine compliance duties.

A consolidated view of all compliance-related data

Salesforce modules like Customer 360 integrate information from various sources to offer a unified view of all compliance-related data. With the consolidated data, bankers can analyze and monitor compliance metrics faster, leading to more informed decision-making. Centralizing all relevant data in one place also simplifies the creation of compliance reports and ensures consistency.

Reduced risks of human errors

Salesforce’s automated features reduce manual data entry and calculations, lowering the chance of human errors. Automated workflows ensure consistent processes and data handling, reducing discrepancies. Additionally, tools like Einstein Analytics help spot and resolve potential compliance issues before they escalate.

Automated reporting

Salesforce’s automation tools simplify the creation of compliance reports, ensuring they are generated accurately and promptly. Automated reporting provides banking employees with up-to-date compliance status information, reflecting any real-time changes. Users can also create customized reports to meet specific regulatory and internal requirements.

Higher adaptability to changing regulatory requirements

Salesforce modules can be modified to fit new or changing regulations without significant rework. The platform regularly updates its compliance modules to align with the latest regulatory changes, ensuring continuous compliance. Its scalability enables banks to adapt their compliance processes as their needs shift or regulations become stricter.

Reduced risks of fines and penalties

Automated compliance management with Salesforce reduces security breach risks by following and documenting all the necessary processes. Salesforce’s features help keep accurate records of compliance activities, which are essential for audits or regulatory reviews. Hence, with Salesforce tools, banks can avoid errors that could result in costly fines or penalties.

Challenges and considerations for implementing regulatory compliance modules within Salesforce

Data quality and integrity

Banks should closely monitor data accuracy and consistency. Inaccurate or inconsistent data can result in compliance breaches, incorrect reporting, and potential regulatory fines.

To avoid this, organizations should employ Salesforce’s data governance features to enforce stringent data quality standards. Tools like data validation rules and automated cleansing can ensure that your data remains accurate and reliable.

Integration complexity

Integrating Salesforce with legacy systems and various external financial data sources can be complex and require significant customization, impacting project timelines and resource allocation.

Salesforce offers comprehensive integration tools and APIs to connect with legacy systems and external data sources. Effectively using these tools can simplify the integration process and ensure smooth data flow.

Frequent regulatory changes

Financial regulations are subject to frequent updates, which can complicate keeping compliance measures current and effective.

Salesforce frequently updates its compliance modules to reflect new and changing regulations. Keeping your Salesforce system updated ensures that compliance processes align with the latest regulatory requirements.

Data security

Given the strict regulatory standards for data protection, ensuring the security of sensitive financial data against unauthorized access and breaches is a major concern.

Your bank can use Salesforce Shield for advanced security features, including encryption, event monitoring, and field audit trails to safeguard compliance data and meet stringent security standards.

Performance issues

Implementing compliance modules may affect system performance, potentially leading to slower transaction processing and reduced operational efficiency.

Focus on optimizing your Salesforce environment by using performance tuning and load balancing techniques. Monitoring and adjusting system performance can help maintain efficiency even with extensive compliance modules in place.

How Salesforce accelerates regulatory compliance for banks: our case studies 

At Noltic, we have extensive experience implementing Salesforce in financial organizations. Our case studies highlight how we helped banks to meet complex compliance requirements and improve operational efficiency. Our portfolio of successful projects ranges from adjusting CRM setup and securing documentation flow to developing comprehensive financial solutions.

Marketing Cloud implementation for Esquire Bank

Esquire Bank needed to enhance marketing with hyperpersonalization, which required extensive automation. Our team’s expertise with Marketing Cloud helped the bank manage large volumes of customer data and integrate it with the CRM system to improve user engagement. Here is what we did:

  • Simplified content management with drag-and-drop features and reusable components.
  • Set up website integrations for tracking and data collection.
  • Developed responsive landing pages and advanced email campaign features.
  • Captured and integrated event data from the WordPress site.

Noltic's collaboration with Esquire Bank

CRM implementation for Esquire Bank

Along with improving marketing operations, Esquire Bank needed to upgrade its reports and analytics and implement a new CRM system to facilitate customer data management. The goal was to speed up sales, boost revenue, and reduce CRM interactions for the sales team. Our solutions:

  • Implemented a customized Salesforce CRM with a tailored UI.
  • Enhanced marketing automation and campaign support with the Sales Console Tool.
  • Automated lead and opportunity processes.
  • Customized conversion process with duplicate alerts.
  • Linked website data to Sales Cloud for lead tracking.
  • Added lead scoring, data cleaning, and product interest integration.
  • Integrated financial data analysis, loan calculations, and analytics.

Business impact:

  • Boosted revenue and reduced internal processing time.
  • Reduced manual CRM operations.
  • Easier integration of new employees and data with an intuitive interface.
  • Created scalable solutions and adaptable tools for updated processes.
  • Increased automation and campaign support.
  • Faster sales process with automated lead and opportunity management.

Key takeaways 

Navigating regulatory compliance is a complex task for banks, but Salesforce provides powerful tools to simplify this process. Key regulatory standards like KYC, AML, GDPR, and Dodd-Frank require comprehensive solutions to manage and accelerate compliance. Salesforce offers specialized modules to address these needs effectively:

  • Salesforce Shield ensures data encryption and event monitoring.
  • Financial Services Cloud supports KYC and AML requirements.
  • Einstein Analytics helps with risk prediction and compliance dashboards.
  • Customer 360 integrates customer data across systems for a unified view.

Noltic’s extensive experience with Salesforce, including over 110 successful projects and a team of 10 Salesforce-certified architects, underscores our capability to deliver tailored solutions for the financial sector. We’ve helped numerous banks enhance their operations and achieve remarkable results.

Let Noltic’s expertise guide you through the process and transform your operations.

FAQs

How can banks keep up with frequent regulatory changes using Salesforce?

Salesforce helps banks stay current with regulatory changes through its flexible and scalable solutions. By using Salesforce’s modules like Financial Services Cloud and Einstein Analytics, banks can adapt to new regulations quickly. The platform offers regular updates and customizable features that align with evolving compliance requirements, ensuring your system remains up-to-date.

Is Salesforce expertise required for regulatory compliance modules implementation?

Yes, expertise in Salesforce is highly recommended for implementing regulatory compliance modules. Specialized knowledge is crucial for configuring the system correctly, ensuring all compliance requirements are met, and optimizing the platform’s capabilities. Experienced professionals can navigate the complexities of these modules and tailor them to your bank’s specific needs.

How long does Salesforce’s regulatory compliance modules implementation typically take?

The implementation timeline can vary based on the complexity of the requirements and the size of the organization. Generally, the process takes between 3 to 6 months. This includes phases such as assessment, customization, data migration, and user training. A detailed project plan can provide a more accurate timeline tailored to your specific needs.

How can we ensure a smooth transition for our staff?

To ensure a smooth transition for staff, it’s essential to provide comprehensive training and support. This includes hands-on training sessions, detailed documentation, and ongoing support from Salesforce experts. Engaging employees early in the process and addressing their concerns will also help ease the transition and improve adoption rates.

What are the costs associated with implementation?

Costs vary depending on factors such as the size of the organization, the complexity of the implementation, and the specific Salesforce modules required. Typical costs include licensing fees, implementation services, customization, and training. It’s best to work with a Salesforce partner to get a detailed cost estimate based on your specific needs.

What about data migration? How can we ensure data accuracy?

Data migration involves transferring data from existing systems to Salesforce. To ensure accuracy, start with a thorough data audit to identify and clean any inconsistencies. Utilize Salesforce’s data migration tools and work with experienced professionals who can perform the migration carefully and validate the data post-migration to ensure it’s accurate and complete.

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Igor Petrovych
CEO/Co-founder
Noltic's manager of managers, 12x Salesforce certified architect
Oleksandra Petrenko
Content writer
Engaging and data-driven content creator focused on Salesforce solutions.
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