(Newswire.net — June 15, 2023) —
As the financial industry keeps developing at a fast pace, the market creates more and more advanced and life-changing saluting for mortgage lenders, credit unions, banks, and fintechs. And Knowledge as a Service or KaaS is one of them. So, what is KaaS, and how it can help your institution? Let’s find out.
Knowledge as a Service is an innovative approach that merges technology and knowledge in a cloud-based software to provide easy access to information and expertise in the form of research materials, analysis, datasets, articles, and model content. KaaS’s primary objective is to furnish FIs with efficient and streamlined means of accessing this knowledge. It’s the perfect way to help your board, management team, and employees leverage information essential for efficient performance and operations as well as well-informed decision-making. To put it simply, all without the need to hire additional employees or invest in more infrastructure.
SaaS vs KaaS: What is the Difference?
Software as a Service (SaaS) is a cloud computing model in which software applications are provided over the Internet as a service. In this model, users can access and use software applications without the need for installation or management of software solutions. Popular examples of SaaS include customer relationship management (CRM) systems, project management tools, collaboration software, and email marketing platforms. However, they can be anything starting from apps like Google Calendar to loan management software.
The main difference between SaaS and KaaS is in the purposes and tasks that these applications perform. SaaS platforms are developed to streamline business operations and make your institution more efficient – accelerate routine tasks, automate reporting, and more. KaaS platforms are made to level up this efficiency by making it knowledge-driven. What it means is that KaaS solutions help financial institutions save hours of obligatory research and make their decisions data-driven. These tools constantly grow their knowledge base by making them an up-to-date and reliable knowledge source.
Top Benefits of KaaS Solutions in Finance
Market offers a variety of KaaS solutions right now across all industries with financial services being known as the one where these solutions have a particularly significant impact. Fintechs have a wide range of solutions to offer and they go beyond basic compliance functionality and risk management automation. By working with compliance and risk management experts, fintechs are able to develop KaaS that turn complex knowledge into easy-to-understand information. This makes such KaaSs the best source of knowledge that helps better understand their risks and make data-driven decisions faster.
Here’re the top benefits of Knowledge as a Service solutions you need to know:
- Get to market faster with new products and services
When a financial institution launches a new product or service, it requires a lot of research, such as delving into federal and state laws and regulations. KaaS software can help with that by providing all applicable banking regulations in a second without the need to look for other sources of information.
- Track regulatory changes in a single platform
Basic regulatory software helps you document an institution’s efforts to comply with new regulations. However, it usually doesn’t provide detailed information about any specific changes made, their impact, and recommended implementation plans. Consequently, extensive hours of meticulous research and reading are still required.
While a KaaS compliance platform is usually regularly updated by an experienced team of regulatory attorneys and compliance officers daily. This eliminates the need for your institution to dedicate valuable time to extensive reading and research, allowing you to focus on executing necessary tasks. Furthermore, KaaSs teams usually condense lengthy regulatory texts into easily understandable summaries, providing clarity on what is expected. Implementation guides are also provided to offer your institution a head start in determining the next steps and a clear path forward.
- Take fair lending data analytics to the next level
While a fair lending solution can effectively analyze data, a KaaS solution takes data analytics to a higher level by providing comprehensive explanations of the findings and suggesting actionable steps for your institution.
The KaaS approach usually combines sophisticated data analysis with regular meetings facilitated by our Fair Lending analysts. These meetings are designed to enhance your understanding of the intricacies of your fair lending program and provide guidance on necessary adjustments. Data analysis alone lacks significance without proper context.
- Understand what questions to ask and which areas to evaluate during risk assessments
Risk management is a must for any financial institution. And risk assessment powered with KaaS can assist with identifying potential risks, questions, and areas to evaluate. A solution can offer a model risk assessments to guide your team in the right direction. Modern solutions can offer dozens of model risk assessments, such as loan servicing, IT governance, AML compliance, and more.
- Simplify vendor due diligence
While a technology solution can provide vendor software for storing documents and sending reminders for updates, it falls short in assisting with the demanding task of collecting, reading, and analyzing crucial information buried within extensive documents such as test results, financial reports, SOC 2s, and more.
To address this challenge, vendor management KaaS platforms have a team of specialists dedicated to gathering due diligence documents, meticulously deciphering technical jargon, and summarizing key points. This enables you to access the necessary information to assess vendor risks without getting overwhelmed by the volume of documents. Additionally, KaaS platforms can send out alerts when selected vendors encounter cybersecurity issues, ensuring you stay informed and proactive in managing vendor-related risks.
Conclusion
These are just the smallest part of Knowledge as a Service software solutions in compliance and risk management that can help you better evaluate risks, boost the performance of your team, and get the latest insights from the best experts in the financial industry. If you want to know more about KaaS, reach out to Ncontracts to explore top-notch software for financial institutions.