Building compliance automation with a human touch
Compliance automation doesn’t necessarily mean less human involvement. In fact, quite the opposite. Rather than replacing compliance professionals entirely, smart automation expands their toolkit and saves time and effort.
So, how do you build a compliance ecosystem that strikes the right balance and supports expert judgement instead of replacing it with one-size-fits-all automation? Read on!
What is compliance automation?
Let’s set the record straight first: what do we mean by compliance automation? Essentially, automated compliance is the practice of using software technology to streamline compliance procedures and ensure full adherence to both external regulatory standards (e.g. the CSRD and GDPR) and internal, company-specific rules on business operations, data security and general AML and risk management.
Automation makes perfect sense: keeping up with compliance is a massive undertaking for any business, and organisations cannot afford to spend their valuable human resources on manually vetting every transaction or other scenario. This is where compliance automation enters the picture – typically in the form of individual software tools or an all-encompassing platform that integrates best-of-breed software and practices, like Harmoney.
Compliance automation myths debunked
If compliance efficiency is the goal, fully automated decision-making isn’t necessarily the answer. Among the companies we serve with our end-to-end compliance platform, compliance officers typically have to overcome widespread compliance misconceptions when explaining automation benefits to other decision-makers in their organisation.
Here are some of the most common myths:
Myth #1: “Compliance tools and software are inflexible or one-size-fits-all.”
Modern compliance tools are designed with configurability in mind. They recognise that organisations need to tailor their workflows, rules and alert thresholds to align with both their industry-specific regulatory requirements and internal policies. The misconception often stems from outdated, single-purpose legacy tools that lacked integration and adaptability. Flexibility is a core feature of high-performing compliance platforms.
Myth #2: “Compliance automation introduces security risks.”
Cloud computing has come a long way. In 2009, for example, half of all banks hadn’t adopted a single cloud application – something unthinkable today. Today, well-designed compliance platforms incorporate security features such as encryption, access controls, audit trails and regular updates. These are capabilities that most organisations wouldn’t be able to implement effectively on their own.
Myth #3: “A rules engine will make all decisions and replace compliance officers entirely, leaving no room for human oversight.”
While rule engines excel at handling straightforward, binary compliance checks, they can only act on predefined logic. They struggle with the grey areas of complex compliance scenarios, which require deep company knowledge and contextual judgement calls that only experienced compliance professionals can provide. Smart compliance automation tools are designed to surface the most relevant high-risk cases and anomalies for human review. Instead of replacing humans, automation supports compliance teams and enables them to focus their expertise where it matters most, making informed decisions faster.
The takeaway from all these myths is clear: human oversight matters more than ever.
What compliance managers really want from automation
Ultimately, what compliance managers aim to achieve is simple: fully compliant workflows that are easy to implement, reliable and scalable, without hidden surprises like unexpected costs. Across all our conversations with compliance managers, the following criteria consistently stand out in their decisions about platform automation:
- Regulatory and internal compliance across all workflows.
- Demonstrated platform success in similar organisations and sectors.
- Fast platform implementation without operational disruption.
- Full transparency on total cost of ownership (TCO) and support.
- Strong platform security, future integration potential and scalability.
Real-world automation: lessons from ALD Automotive
Every organisation has unique compliance strategies and systems in place, tailored to fit its unique company DNA. So, how do you implement continuous compliance automation effectively? The real-life case of ALD Automotive provides clues into building compliance best practices with Harmoney.
Two key takeaways from this case:
- Scaling compliance without increasing employee workload is essential. Harmoney’s customer onboarding and client lifecycle management workflows are excellent examples of efficient, large-scale automation.
- Effective third-party relationship management (TPRM) through a single platform like Harmoney helps manage all external partners, vendors and service providers in your automation ecosystem.
Read the full case to learn more about how ALD Automotive used Harmoney to build a comprehensive, human-in-the-loop approach to compliance.