PeakFin Investments, a new investment firm, faced a severe challenge. Their compliance procedure was tedious, manual, and out-of-date. It took 6 hours daily with a 20% error rate. Addax developed a custom, intelligent, automated compliance management system that optimized PeakFin's compliance processes and improved regulatory compliance. After implementation, compliance time was reduced to less than an hour, and errors were practically eliminated!
Author's Note: To respect the non-disclosure agreement with our esteemed client, we've used 'PeakFin Investments' as an alias, the same goes for their employee names.
Before Addax's involvement, PeakFin Investments struggled with several compliance issues:
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Their manual, outdated compliance processes made a mid-size team spend an excess of six hours of daily monitoring transactions and managing risk assessments.
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Manual handling resulted in frequent errors, with about 1 in 5 reports containing inaccuracies.
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Incorporating new regulations into their process took up to five days, risking compliance lapses.
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The firm spent nearly 30% of their operations budget on compliance due to timely consumption and error rates.
In the face of these challenges, Oliver Reed, the CEO of PeakFin, and Grace Thompson, PeakFin Compliance Officer, decided it was time for outside help. They turned to Yaro Shevchenko and his dev team at Addax for their expertise in building compliance management systems for financial institutions.
Addax devised a custom SaaS-style solution. This consisted of a compliance management system using Python and Django for backend development, ReactJS for an intuitive frontend, PostgreSQL for robust data management, and Docker for consistent deployment across environments.
This system automated PeakFin's compliance processes, such as customer onboarding, transaction monitoring, and risk assessment. It also offered real-time insights into PeakFin's compliance posture, enabling the firm to identify and address compliance risks swiftly.
The Addax Compliance Management system achieved remarkable results:
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Daily time spent on compliance processes dropped from 6 hours to just 1.
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Accuracy rates soared to nearly 100%, practically eliminating manual errors.
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New regulations were incorporated into PeakFin’s process within hours, ensuring that PeakFin always remains in sync with the regulatory compulsories.
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Compliance costs fell from 33% to 10%, freeing up a whopping 23% of the operating budget!
Our compliance management system has transformed Peakfin's approach to compliance and opened up new possibilities for the firm. Real-time insights enhanced decision-making, and the firm could identify and manage compliance concerns, lowering the chance of regulatory infractions. Their compliance team also gained significant efficiency because of the swift collaborative capabilities newly available.
Oliver and Grace managed to cut company costs significantly. They were more than satisfied with the new system stating:
"Addax's regtech solution has been a game-changer for us. It has transformed a daunting compliance challenge into a streamlined, automated process that aligns perfectly with our commitment to regulatory adherence and operational efficiency."
This project stresses the vital function of regulatory tech in automating and improving compliance operations. It also demonstrates how the Addax "custom SaaS" development approach can solve messy problems in the financial industry. The tech stack was Python, Django, ReactJS, PostgreSQL, and Docker. Inquire for more information about how our technology approach fit our clients' technical infrastructure.