Improving business agility, productivity, and insights with technology

Published | Thursday, June 28th, 2018

ACL recently commissioned Forrester Consulting to conduct “The Total Economic Impact™ of ACL: Cost Savings and Business Benefits Enabled by ACL for a Financial Organization” study in March 2017 as part of a series of studies measuring the benefits, costs and tangible value for organizations using the ACL Platform.

A previous study in the series, completed in December 2016, revealed an ROI of 402 percent over three years for an international airport.

“We believe these independent studies show ACL consistently delivers staggering ROI while also facilitating interdepartmental collaboration among teams responsible for managing diverse areas of enterprise risk,” said Dan Zitting, chief product officer at ACL. “ACL not only equips organizations with a single platform to assess risks, manage projects and continuously monitor transactional data, but also enables organizations to improve strategic agility by eliminating slow regulatory processes. Our customers can also directly tie—and track—strategic risks to business objectives, supporting performance as the number one driving force.”

The study identified the following quantifiable benefits the bank realized using the ACL Platform:

  • Cost efficiency in enterprise risk management (ERM) and compliance functions.These two divisions alone saved over US$237K each year. The compliance team is managing data more efficiently, and the ERM team is able to self-assess risk, eliminating the need to hire additional consultants.
  • Productivity boost of 50% among multiple departments and branches. Previous processes required 1,000+ non-audit employees to spend significant time servicing audit needs, rather than focusing on customer needs. The bank has been able to reduce that time by nearly 20 hours per affected employee—20K hours total—each year, generating more than US$500K in productivity savings over three years.
  • Decrease in salary and consulting costs. The bank’s 27-person audit department needed to conduct 80 audits per year (a 31-person job), often requiring hired consultants to fill capacity gaps. Now, even after losing two employees to attrition, the department is considered fully staffed, saving salary and consulting costs of up to US$399K each year.
  • Revenue spike through strategic data visualization. Due to improved strategic insight from ACL, the bank generated an additional US$

In addition to these quantified benefits, Forrester identified several unquantified benefits, or qualitative advantages, to using ACL’s data-driven compliance and risk management software including:

  • Improved regulatory standing and strategic agility in acquisition opportunities.The bank implemented ACL a few years after a Memorandum of Understanding (MOU)—a non-punitive measure adding regulatory scrutiny over the institution’s business dealings—caused them to miss out on a key acquisition opportunity. Now with ACL, the bank was recently able to complete a similar strategic acquisition, while a competitor was burdened by slow regulatory processes.
  • Enhanced information technology (IT) process management and reporting.Before using ACL software, the IT department spent excessive time manually extracting information from log files and emails or repeating certain procedures from earlier in the year. With ACL, IT processes are logged and documented automatically, reducing fatigue, frustration and turnover among the department’s professional staff.

According to the bank’s Vice President of Risk, “ACL is the right product for us. It is organized. It is logical. [It is] more of an open-book approach to enterprise risk management. We’re constantly assessing and evaluating now, and so our processes have become more mature as we’ve become more risk aware.” The VP added, “With ACL’s platform, we can see how decisions are derived, and that has helped make the bank more risk aware.”

Read the full study, “The Total Economic Impact™ of ACL: Cost Savings and Business Benefits Enabled by ACL for a Financial Organization,” including a detailed financial analysis, now.

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