How Banks Can Automate RBI Compliance Without Coding: A No-Code BRF Guide
Constantly changing rules and policies by the RBI (Reserve Bank of India) make maintaining compliance in banks very challenging. Demands around KYC (Know your customer), AML (Anti-Money Laundering) and internal audits are increasing, and manual processes are not enough to keep the banks up to date with these changes. Hence, there is a need for an enterprise automation tool that helps these financial institutions to manage rules and automate decision-making, without decreasing the bottom line or increasing the IT workload.
A no-code business rule engine in banking hence, becomes the go-to solution. It allows teams to check for compliance by defining, testing and deploying rule-based workflows without writing a single line of code. This puts the control in the hands of business users, which enables these financial enterprises to streamline compliance processes while reducing risk and operational effort.
RBI Compliance needs to followed by banks
Eliminating dependency on dev teams to define rules
A no-code framework enables business teams to create and manage rules for some of the applications such as:
- KYC and customer onboarding
- Checking against sanction lists
- Credit scoring and flagging for enhanced due diligence
No-code applications like Lexium BRF are specially built for non-technical users, enabling rule changes to be done quickly in response to updates from the RBI about new regulations and internal policy updates.
Automated Customer Onboarding and Sanction List Screening
Manual and repetitive checks leave a lot of room for error and cause a lot of delays, reducing customer satisfaction. Automating them is the way to go. Some examples include:
- Automating the process of customer screening during onboarding by defining logics for checking government-issued IDs, cross-referencing global watchlists and applying credit scoring.
- Flagging and notifying the concerned authorities as soon as risk thresholds are met.
- Any deviation in cases from a compliance point of view gets routed for a manual review.
Financial enterprises can hence use BRF for improving speed and consistency in compliance operations by standardising how these rules are applied.
Enterprise BRF Integration with Legacy Banking Systems
A good Business Rule Engine can integrate easily with legacy systems and scale. APIs can be used to connect to customer databases, document verification tools and case management systems. As the customer base grows, so does the transaction volume. These financial enterprises, hence, need a BRF that can easily scale up without any performance issues.
Other important features in a BRF could be:
- A visual rule builder for business users
- Automation of rule validation and testing
- Audit logs and version history
- Role-based access control and other secure access management features
Features like these ensure that the compliance teams can respond quickly to changes by eliminating dependency in the dev teams
Benefits for finance and compliance teams
Banks and other financial enterprises that use BRF experience several benefits, such as:
- Quick onboarding of customers
- Reduced workload for compliance teams
- Increased accuracy by reducing errors and missed checks
- Up-to-date audit logs for improved readiness
In this constantly changing regulatory environment, a flexible and easily adjustable BRF is the way to move forward. A no-code BRF allows banks to quickly adapt to these changing rules without increasing complexity.
Bring the control back to business teams
Conclusion: Streamlining Compliance with No-Code Solutions
Compliance is where the whole banking industry relies on for maintaining customer trust and to stay in practice for a long period. It’s also one of the hardest things to maintain, considering all the manual work to be done. That’s where BRF comes into play by eliminating the manual work and automating key compliance functions, reducing risk and staying ahead of regulatory changes. A no-code BRF puts the control in the hands of business users, enabling them to make faster and more accurate decisions by eliminating dependency on dev teams. Banks leveraging low-code/no-code platforms report 50% cost reduction from the IT side and an ROI ranging from 150% to 300% (Source: CredAble).
Interested in learning how it can help your compliance practice? Reach out to us at: E-mail: sales@kainest.com