In an era marked by increasing regulatory scrutiny and rapidly evolving market demands, the roles of Human Resources (HR) and Compliance in the banking sector have never been more intertwined. Both functions, typically operating as support departments with constrained resources, are essential in upholding the operational integrity and reputational strength of banks. Their complementary roles – from managing employee training to ensuring adherence to strict regulatory standards – underscore a broader trend toward integrated organisational practices.
Tuesday, March 04, 2025
By Paul Jon Martin, Managing Director at PeopleWeek SA and Nabil Hatimy, Director and Head of Clients Delivery & Partnerships at Indigita SA
Collaboration in Practice
At the heart of this integration is the practical collaboration between HR and Compliance teams. Take, for example, regulatory training and certification. Compliance experts outline the necessary training programs on topics such as anti-money laundering (AML), know-your-customer (KYC) protocols, data protection, and cross-border regulations. Meanwhile, HR departments leverage learning management systems (LMS) to schedule, track, and report on these training sessions. This joint effort not only keeps employees informed about critical regulations but also minimizes legal and reputational risks for the institution.
Similarly, in the area of employee conduct and ethics management, HR develops comprehensive codes of conduct and ethics policies. Compliance then plays a pivotal role in aligning these policies with evolving regulatory expectations and monitoring adherence. Such measures foster a culture of integrity and transparency, where clear guidelines and reporting mechanisms, including whistleblowing channels, help maintain ethical standards.
Other collaborative areas include managing conflicts of interest and personal account dealings. Here, Compliance establishes the frameworks for monitoring such activities, while HR embeds these guidelines into employment contracts and performance management systems – thereby reducing the risk of insider trading or market abuse. The partnership also extends to cross-border regulatory compliance, where both teams ensure that employees understand and follow international rules, thus safeguarding banks from inadvertent breaches that could lead to fines, sanctions, and reputational damage. Finally, comprehensive background checks further illustrate how the combined expertise of HR and Compliance can prevent the recruitment of individuals who might pose financial or reputational risks.
Cultivating an Ethical Organisational Culture
Beyond these specific tasks, the synergy between HR and Compliance is instrumental in nurturing a robust organisational culture. By working together, these departments not only manage people-related risks but also set the tone for ethical behaviour throughout the organisation. Leadership that models the right behaviours, combined with clear policies and effective measurement tools, helps instill a culture where ethical practices are the norm.
The Importance of Integrated Systems
While the benefits of collaboration are clear, achieving true operational synergy requires robust and integrated systems. When HR and Compliance operate on separate platforms, even basic tasks – such as managing employee declarations, tracking mandatory trainings, and overseeing new hire procedures – can become unnecessarily complex. Integrated systems streamline these processes, enhancing efficiency and ensuring that banks can more easily demonstrate compliance with regulatory requirements.
Stronger Together
For readers in the Swiss banking community, these developments highlight a potential evolution in how banks address the dual imperatives of regulatory compliance and effective oversight of their employees. As banks navigate an increasingly complex landscape, the integration of HR and Compliance processes and systems can serve as both a practical solution and a strategic advantage. It also underscores the notion that, when an integrated approach is taken, the two functions are stronger together.
Enhancing Compliance and HR Efficiency: Indigita & PeopleWeek Partnership
Recognising the challenges posed by siloed systems and the need for greater digitalisation, Swiss companies Indigita SA, a compliance specialist, and PeopleWeek SA, an HR software provider, joined forces in 2023 to bridge this gap. Their collaboration has evolved into a formal partnership aimed at seamlessly integrating compliance frameworks into HR processes.
Through this partnership, banks can streamline employee training, track certifications, manage conduct policies, and handle cross-border training and travel approvals. Additionally, the integrated solutions enable digitalisation of employee compliance attestations and background check functionalities during onboarding. By leveraging these systems, financial institutions can strengthen regulatory adherence, mitigate risks, and foster a culture of integrity.
