Hidden costs of manual compliance (and how to fix them)
Manual compliance doesn’t cut it anymore. While it might seem like a cost-effective way to comply with EU regulations and internal policies, hidden costs start racking up quickly and manual outreach and campaigns no longer match the reality of regulatory and operational complexity.
Smart financial institutions, brokers and other organisations are shifting to all-in-one compliance, for complete peace of mind and greater efficiency. In this blog, we break it down for you.
Key problems of manual compliance
On paper, manual compliance looks simple: keep track of existing and new internal requirements and external regulations, and update inaccurate client, UBO or other related-party dossier details as required through ad hoc emails or larger-scale targeted campaigns. The reality, however, is a different story. Hidden costs can escalate quickly: compliance teams spend their time chasing paperwork and signatures instead of delivering true compliance excellence.
As a result, processes slow down and audits become a nightmare. Every year, new legislative updates like MiCA and DORA add even more complexity. What feels like a low-cost way of staying compliant for your organisation actually introduces more risk and frustration for everyone involved – including your end clients.
9 recent EU updates every compliance professional in financial services should know (Q3 2025)
MiCA regulation: impact on financial institutions
Digital Operations Resilience Act (DORA regulation) impact on financial institutions
Examples: hidden cost of manual compliance
Manual compliance almost always turns out to be expensive. Here are some of the most common issues our clients at Harmoney used to run into before automating their compliance:
1. Operational inefficiency
Compliance teams quickly lose hours reconciling data from different data silos and finding the right records between different systems. Fragmented workflows slow down client onboarding, AML reviews and dossier approvals.
2. Audit and regulatory risks
Manual systems and siloed record-keeping make it difficult to demonstrate compliance to regulatory authorities, increasing the risk of fines or reputational damage.
3. Employee frustration
Repetitive tasks are not what your compliance specialists signed up for. Chasing UBO signatures, updating files and re-entering data across multiple systems is demotivating and may lead to higher staff turnover.
4. Increased risk of errors
Manual updates through individual, non-standardised emails or phone calls are prone to human error. A mistyped entry or missed deadline can have far-reaching consequences, from failed audits to broken client trust.
Savings on all fronts with automated compliance
Forward-looking financial institutions, brokers and leasing companies are moving towards end-to-end, all-in-one compliance platforms like Harmoney. Why? They want complete peace of mind, transparent and traceable processes, and the flexibility to grow their business instead of being bogged down by manual compliance tasks that take up too many resources. The benefits of automation are clear:
- Cost savings through automated data capture and document flows, reducing time spent on routine manual tasks.
- Improved accuracy and transparency with standardised processes.
- Scalability with automation platforms that adapt and grow alongside your business.
How Harmoney helps you fix manual compliance
At Harmoney, we’ve built the technology that makes compliance scalable and future-proof, while integrating with your existing tech stack. Our comprehensive compliance platform is trusted by leading financial institutions and organisations to automate onboarding, KYC remediation campaigns and ongoing client monitoring, all while staying fully up-to-date with the latest regulatory frameworks. The key advantages in a nutshell:
All-in-one compliance
Connect to your preferred internal data sources and external data providers, automate document collection and campaigns, and keep client profiles up to date without manual intervention.
Audit-ready workflows
Every compliance step is logged and fully traceable and transparent, reducing the workload and stress during regulatory audits.
Flexible modules
Start small with a single module to gradually automate one of your KYC or AML workflows, or roll out full automation across your organisation.
The result? Our clients report faster onboarding times, lower operational costs, and more time for compliance teams to focus on their core tasks.
Harmoney offers a cutting-edge digital platform that streamlines intricate onboarding and compliance procedures, featuring automated screening functionalities. Interested in discovering more about our innovative solution? Reach out to us for further details!