Buying a compliance solution? 4 things to consider before you commit

Choosing a technology solution to meet your compliance requirements is complex and challenging. As well as establishing whether your chosen vendor will be able to deliver on the promises made, there are a wealth of technical considerations to weigh up. Understanding whether a vendor has the experience, technology, and support required to meet the bespoke needs of your business is critical to ensuring successful outcomes.  

To help you in your buying decisions, we’ve put together four key things to consider before you sign on the dotted line.

1. Can your chosen vendor deliver integrated compliance solutions without introducing third-party risk and administrative burden?

Many technology vendors have built products to specifically cater to individual branches of compliance – whether that be a specific focus on data archiving, surveillance, or eDiscovery. This often means that financial institutions rely on a layered approach to compliance, resulting in partnerships with multiple vendors delivering a patchwork of solutions to meet regulatory requirements.

Alternatively, some vendors opt to acquire other services in a bid to offer an “end-to-end” compliance solution. However, these acquisition-based vendors can inherit a wealth of legacy architecture, bringing with it a tapestry of known and unknown risk and complexity – and potential accountability issues.

Before you sign on the dotted line:

• Consider whether your chosen vendor offers a truly integrated approach, or whether you could find yourself needing to layer other technology solutions further down the line
• Establish whether your vendor uses scalable, future-proof technology to deliver surveillance solutions, or whether their approach could be fast outdated
• Consider whether you’re fully cognizant of acquisition strategies and the vendor’s reliance on other third or fourth parties to deliver a solution for your business

2. Does your chosen vendor have demonstrable experience and resource to manage your compliance needs?

In 2022, TSB Bank received a £48 million fine for relying on a third-party vendor to deliver a mass data migration which subsequently failed. Among other things, the fine was issued because TSB Bank failed to ensure that its selected vendor had proven experience of managing data migrations at the scale and volume that its project required. This fine clearly cemented the need for organizations to ensure that their third-party vendors have the experience required to successfully deliver on their promises. Experience is vital for myriad reasons – experienced vendors are better equipped to understand your compliance needs, will be better able to navigate market turbulence, and will likely be more financially secure to deliver compliance solutions without disruption.

Before you sign on the dotted line:

• Ensure your chosen vendor can demonstrate successful delivery of similar projects on your required scale
• Consider whether your chosen vendor has the required experience to understand your needs and the evolving landscape
• Understand whether your vendor has the financial stability to provide compliance services without future disruption

3. Will you know where your critical data is stored, and can you access it when needed?

Your company’s data is one of your most valuable resources. Global financial regulators demand that your communications data is preserved securely and have issued over $3 billion in fines to firms that have failed to meet recordkeeping obligations. Despite global outages, many technology vendors continue to rely on large, public cloud providers to store customer data. This can often lead to performance issues, security risks, and hidden fees.

Before you sign on the dotted line:

• Understand where your chosen vendor will store your company’s data, and how easy it is to access that data once stored
• Consider whether there are extra fees if using a large cloud infrastructure such as Amazon, Google, or Microsoft
• Consider whether you may be exposing your firm to potential security risks or operational downtime if your vendor does not own the environment in which your data will be stored

4. Will you be consistently supported, even after implementation?

Acquiring compliance technology for your firm is often long and complex, with varying layers of support required at every stage of your buying journey. Many firms find that they receive unlimited support while working to get their buying decision over the line, but that this support falls away once a purchase decision has been made. For firms looking to implement a solution with hundreds or thousands of users, this can mean that individuals fail to use compliance technology in an effective way, resulting in limited results and challenges in proving ROI.

Before you sign on the dotted line:

• Consider whether your chosen vendor has proven experience in delivering ongoing training and support at a scale that matches your company’s requirements
• Consider whether your vendor’s level of support would have you covered in the event of difficulties or the need for urgent assistance at any time