Trust Exchange has launched a series of applications that enable governments to connect, engage and collaborate more effectively and operate at the speed of trust. Join us on November 15th at 1:00PM EST as we discuss these innovative solutions and how they help local governments digitally transform their interactions with local businesses.
Financial institutions have a regulatory obligation to mange and monitor the compliance of all of their Third Parties ( Vendors, Customers Partners etc.) This function, while normally complex and expensive has been complicated by the uncertainty added to many companies by the pandemic response over the past 18 months. Join us and some industry experts to discuss the state of Vendor Compliance in this new reality.
Thank you to everyone who filled out our 2021 Vendor Management Survey! We had over 1,500 participants from a variety of backgrounds including Banking, Pharma, Government, and Retail! Despite the huge variety in organization size and number of key vendors, there was something over 80% over our respondents had in common: they expect their vendor management costs to increase in 2021.
Trust Exchange, a collaborative compliance platform, today announced that the company has appointed Graham Richard, former Mayor of Fort Wayne, Indiana to its Advisory Board.
You are NOT in the business of compliance. You ARE in the business of relationships. Trust Exchange gives you the time to return to that mission again. In high-regulation industries, managing the compliance of your vendors and partners is an ever-increasing task. Because of this acceleration, instead of the coach or teacher that you should be, you’ve become the truancy officer. Here’s why the job grew so difficult.
We live in a Networked World. Consumers have adopted collaborative platforms to make their lives easier but businesses have been slow to adopt these technologies. They are still hailing cabs in an Uber World. In the near future, business interactions will look more like Social Networks and less like email.
With Trust Exchange you can create custom collaboration networks to solve big problems, get information faster, increase transparency and accelerate digital transformation.
The digital transformation of compliance has begun. The emergence of technologies such as cloud computing, artificial intelligence, crowdsourcing, and blockchain is accelerating the demise of the manual pushing and parsing information. Financial institutions have been at the forefront of adopting these technologies for “front office” functions such as marketing, digital banking, and customer experience yet have been slow to transform the “back office” functions where they are still moving things around. A key step in this process is “Dematerialization” or, the process of using fewer things to create more output.
Compliance professionals need to stop thinking like notaries and think in terms of compliance "bits." Bits don't take up space, they can be easily shared or even broadcast to many parties simultaneously. The cost of storing or transporting "bits" is so minimal it's hard to measure. Validation processes can be completed remotely via digital signatures, digital tasks, or some sort of digital proof. As regulations grow and become more complex, the atomic world can't keep up.
While very powerful, Artificial Intelligence (AI) is often misunderstood and broadly applied to solve problems that may not be a fit for the technology. In banking and finance, compliance pressure and the associated costs have grown exponentially in recent years instigating a search for effective solutions. Unfortunately, AI is becoming the hammer used against almost every compliance nail.
Businesses of all sizes, throughout all industries, make the same errors every day. I understand, the competition is ruthless and is always looking to take some market share. Even non-profit organizations are in competition. Why would you ever want to share information with a rival? I’m going to begin my answer with an example. When casinos catch a cheater, what do they do? They quickly notify all their competition throughout the region. Why would they do this? The cheater won’t do any more damage to their business. Why not let the cheater go wreak some havoc at the competition’s Blackjack table? You know the answer, because passing that information quickly and efficiently helps to keep the industry healthy. When it comes to reporting cheaters, there is a high level of trust between competitors.
While fintech and regtech are changing the face of banks and financial institutions, regtech is applicable in many more industries. Complex regulatory requirements are NOT unique to banking and financial services. In fact, while we are pushing thirty financial institutions as customers, in the near future we will be announcing our first regtech applications for our clients in the pharmaceutical industry, human resources and municipalities. Almost everywhere we look, there is an opportunity to apply our technology to dramatically reduce the cost of compliance.
As we pointed out in our prior post, The Secret of the B2B Credit Middlemen, the process for establishing, maintaining, and granting credit is fundamentally busted. It’s expensive, inaccurate, and non-transparent. We believe this industry can be restored in three key ways: 1. Freeing the Data, 2. Socializing the Data and 3. Fixing the Process. In this post we’ll discuss how socializing the data can eliminate one of the key problems in business credit reports: accuracy.
As discussed in our earlier post about B2B Credit Middlemen, a powerful aspect of doing business on the Internet is the elimination of sales and distribution layers between the producer and consumer. In a typical non-Internet value chain there are many “value-added” steps in the process between the producer and consumer. Each step increases costs and reduces profit.
Internet distribution models eliminate many of these steps by scaling distribution and eliminating sales complexity (e.g. Amazon, iTunes, and Zappos). In this post, we will attempt to illustrate the value chain for the B2B credit industry and point out the false value provided by the credit industry middlemen: the credit bureaus.
Credit Bureaus
Credit bureaus estimate a company’s viability by aggregating data from other businesses for them to use in making new credit application decisions. Unlike banks and financial institutions, they DON’T ISSUE CREDIT. Businesses issue credit to each other and should be the real arbiters of worthiness.
Furthermore, this data is created by businesses, provided to the credit bureaus (for a fee of course), and then resold to other businesses. The never-ending fees keep people from using the service and in turn make the data less accurate, less timely, and pretty useless. Who is a better judge of a company’s viability: a random call center operator or the people at companies who interact with each other?
Free the Data
The prevalent business model among these bureaus is to charge companies to ”establish” their profile, charge to view other companies’ profiles, and charge to submit data regarding the quality of interactions they have with other companies. Charging to submit data is a disincentive to accuracy and keeps the largest population of companies (small businesses) from participating. If companies could freely exchange THEIR data, then there would be a more timely and probably more accurate way to determine creditworthiness.
The value of the data increases as the number of active users in the network increases. A sort of Metcalfe’s Law for social networks in practice. The data should be free!
At Trust Exchange, we've created a community of businesses that disclose information with each other to build trust. We believe that with increase trust, business happens faster and more effectively. We've helped many companies in several industries. If you're interested in learning more you can either request a DEMO.
OR...just get started with a Free account HERE.
The process of collecting and monitoring business information is broken, laden with middlemen who don't add value and yield less than perfect information. One of the most compelling aspects of Internet companies is their ability to eliminate the number of parties involved between a producer and a consumer.
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