The LexAlign solution automates the onsite audit function for banks’ commercial customers that use treasury products like remote check deposits, ACH, and Wires.

Sounds simple but what does this mean? 

As Tracey Jackson, SVP Treasury Services Manager at Southern Bank & Trust said “Last year, when I had 680 RDC customers, my auditor told me that I had 680 bank branches.  We gave up trying to do on-site compliance audits years ago—it’s just not possible given the staff time it takes.  Now we have 750 RDC customers and I need a better solution.”

Regulators hold the bank responsible for ensuring their customers comply with regulatory guidelines covering security, RDC, ACH, and Wire processes.  If your client hasn’t yet been cited, it could happen at the next audit, as FFIEC expectations are rising to confront exploding fraud.

Performing audits at customer sites is just not feasible at scale given the related costs.  There is growing recognition that using one-size-fits-all questionnaires is also incredibly laborious and largely ineffective. Why is this?

The bank customer sees no value in returning the questionnaire as there is nothing in it for them.  So, while their banking agreement requires the completion of annual audits, they have little motivation, and almost no jeopardy when they don’t do them.

Why is this important?

Despite the efforts of the bank:

  • Fraud continues to rise exponentially as fraudsters target the gaps in customer operations and sophistication.
  • Fraudsters no longer need to break into the bank, they just manipulate the customer to get access to their deposit accounts.
  • The bank is left with the dismal choice of reimbursing their customers’ fraud losses or risking lawsuits and serious reputational harm.

So, how does LexAlign help?

By automating the on-site audit function and providing immediate value for the bank customer, the LexAlign solution is able to attain a greater than 70% assessment completion rate.  The LexAlign assessment is a great online experience for the customer.   Not only is it an intuitive user interface but the customer gets real value by completing the assessments.

Banks get access to a dashboard that gives them visibility into the activities of their customers while providing the records that demonstrate risk management—exactly what the regulators are looking for.  By using the LexAlign solution, banks can lower their costs, improve their operational efficiency ratios, and provide the records regulators expect.