How is a financial company going to acquire new software when implementing its AML policy without overspending?
This dilemma many industry leaders are facing is very instructive for this purpose. We have to stop illegal money moves, but the software costs a lot.
The best practices will help you achieve the goal of running a well-planned and -executed implementation that delivers results both in time and budget.
Budgetary constraints must never prove a barrier to efficient compliance with AML. Proper planning and research ensure that the implementation of AML compliance solutions meets all regulatory requirements within budget constraints.
This article will take you step-by-step through choosing, buying, and implementing AML compliance software right for your financial institution within your budget.
Assess Your Needs Carefully
Identify your AML needs carefully. Determine your size and type of business. Transaction volumes and risk levels must also be considered.
Recently, nearly 70% of financial institutions plan to boost their AML budgets in the coming year, based on a recent report by ACAMS.
Search for the features you need in AML software solutions. Determine how many users need access. Find out whether you want on-premise or cloud-based software.
Bonus: Financial institutions strive to ensure cost-effective AML compliance software solutions. You can learn more about how our experts can help implement the right solution for your requirements and budget.
Research Vendor Options Thoroughly
Don’t only take the bigger AML software suppliers into account. Think about possibilities from a variety of suppliers, both big and small.
Review what each provides and how easy it is to use. Look at reporting options and how they integrate into your systems.
According to an industry report, the AML software market worldwide is forecast to reach $2.8 billion by 2026, meaning a growing demand for effective solutions.
Request Comprehensive Demos Selectively
Once you identify some top AML software options, ask for full demonstrations selectively. The demos will give an opportunity to assess the features and workflows on a more practical level.
You can ask detailed questions. This will help you get an idea of how well each will meet your needs and budget. By going through them in this manner, you may choose the one that most closely matches your bank.
The software market is anticipated to expand since there is a growing need for efficient AML compliance solutions software. By 2026, it will increase to 3.5 billion dollars from 1.5 billion.
Consider Cost of Ownership Fully
Take into account an AML solutions total cost of ownership. The total cost of ownership includes support fees, updates, maintenance, and training.
Ask vendors about extra fees. According to a recent survey, the TCO for AML solutions may be three times the primary purchase price within five years. Find out the total prices for a five-year usage period.
Make sure the budget covers all expenses. Picking the cheapest option may cost more in the long run. Knowing costs in full detail may aid in finding solutions that meet all needs and budgets.
Negotiate Pricing Strategically
Expect vendors to negotiate on price. Do not expect a customer to pay the highest price offered.
Have a top price in mind. Be prepared to walk away and buy from another if the vendor will not come down in price enough.
Multi-year contracts are the least expensive option because organizations can save up to 30% on compliance solutions by committing to longer agreements.
Ask for what other discounts are available. Vendors might offer cheaper costs for referrals or speedy deployment. Strategic negotiation brings in the best AML compliance solutions at the lowest price.
Plan Implementation Process Wisely
Vendors charge you more to set up the software for you. Work to do some setup in-house. Stagger payments over implementation milestones.
Request free or low-cost training options from your vendors. Use existing tools and knowledge whenever possible. Clearly outline steps and sufficient time to be spent.
A 2023 survey shows that organizations that have planned their AML system implementations with great care realize 30 percent lower costs in comparison with those not done so.
Stagger Payments if Needed
Only a few vendors let the total cost be split over the contract term. Request payment in installments after certain steps are carried out.
For example, paying for set-up first, for training next, and the last before the live date. This saves cash flow when deploying new AML solutions.
According to research, the adoption of phased payment plans can increase the cash flow of organizations by 25%.
Its benefits include budgeting and spreading over long-term what would have been expensive expenses.
Monitor for Improvement Continuously
AML software is intended to make compliance easier over time by making it more efficient. Validate that the solution will bring back the ROI promised when implemented.
Data may find ways to improve efficiencies even after 90 days of implementation. AML software often cuts false positives by as much as 50%.
It also saves a lot of money in costs. Partnerships that ensure smooth-running software are necessary for savings to continue coming, rather than fines for violating regulations.
Such continuous monitoring ensures that financial institutions get value out of their hard-earned money for the AML compliance solutions they purchase.
Implementing an AML compliance solution doesn’t have to be expensive. Learn how to choose the right AML solution, buy it, and integrate it on our website efficiently.
