INSIGHTS

For over two decades, organizations have relied on a Governance, Risk, and Compliance (GRC) model that is fundamentally broken. GRC 1.0 — along with its more recent rebrand as Integrated Risk Management (IRM) — promised operational alignment, proactive compliance, and streamlined oversight. In practice, however, it delivered little more than fragmented systems, spreadsheet sprawl, and manual processes masked by marketing jargon. The traditional approach centers on mapping controls to regulatory requirements. On paper, this seems rational. In reality, it means that companies are asked to translate legal frameworks into internal checklists, build and maintain custom workflows, and rely on periodic sampling — all while assuming that sampled controls reflect systemic compliance. They don’t. The traditional model leaves organizations exposed in ways that are hard to justify today. It fails to identify areas where controls are missing altogether, allows existing controls to shift without notice, and gives leaders the illusion that everything is under control when it isn’t. Instead of offering clarity, compliance turns into an exercise in educated guessing. Companies are left to manage the heavy lifting — building systems, interpreting regulations, and enforcing policies — all while struggling to see whether their efforts are actually working or paying off.

Azimuth, a pioneer in compliance automation, announced today that it is growing its strategic partnership with Truist Financial Corp (NYSE: TFC). With this multi-year expansion of their current partnership, Truist will implement Azimuth’s VALIDATOR software, enabling the bank to deploy automated, full-population compliance monitoring across multiple consumer businesses.

Change is happening overnight at the Consumer Financial Protection Bureau (CFPB) As we await the Senate confirmation of Rohit Chopra to lead the Consumer Financial Protection Bureau, there are things you can do to prepare for what’s to come. We know from Chopra’s background and experience, more intense scrutiny is on the horizon to protect consumers. That means companies and organizations need to step up compliance operations.

JACKSONVILLE, FL — Azimuth GRC, a compliance automation pioneer, today announced Detroit Venture Partners has joined its series A, bringing the total round to $6.3 million.

Financial institutions nationwide are facing a growing challenge of remaining compliant while evolving in an ever-increasing, cost-pressure environment.

Despite advancements in technology, most financial institutions today still rely on sample-based manual compliance testing. But is this really the best approach?

In the financial sector, the evolution from traditional sample-based manual testing to full-population testing marks a critical shift. This advancement is not merely technological but represents a fundamental reevaluation of compliance management strategies. Full-population testing ensures the integrity of financial institutions and protects consumers by offering complete coverage of every transaction, making it an indispensable tool in today’s regulatory landscape. The Case Against Sampling: A Call for Full-Population Testing Historically, institutions relied on sampling for compliance testing—a method that now seems outdated given today’s technological advancements. Sampling’s major flaw lies in its limited scope. Typically, only a small percentage (as low as 0.04%) of transactions are tested, risking significant oversight and potentially leaving institutions vulnerable to non-compliance penalties. In a data set of 100,000, potentially only 40 will be tested. In contrast, full-population testing offers a more reliable and insightful approach. It’s not only feasible but also more cost-effective than manual sampling, thanks to technological advancements. With full-population testing, institutions gain frequent and comprehensive insights into their compliance status, enhancing decision-making and strategic planning. Why Full-Population Testing Is Essential Full-population testing involves scrutinizing every item within a dataset or portfolio, ensuring adherence to all applicable laws and regulations. This method offers a stark contrast to sample-based testing, which only examines a subset of data, potentially overlooking critical compliance issues. When regulators find an issue, they require full population testing. Comprehensive Coverage and Accuracy: Full-population testing eliminates the reliance on inferential statistics used in sampling methods, which can miss non-compliant transactions. This comprehensive approach ensures that institutions capture every compliance anomaly, no matter how minor. Efficiency and Cost-Effectiveness: Modern solutions like Azimuth’s VALIDATOR transform full-population testing into an efficient process. These automated systems can analyze vast datasets in minutes, significantly reducing the labor and time traditionally required for compliance checks, thereby lowering operational costs and accelerating product time-to-market. Proactive Risk Management: By identifying compliance issues early, full-population testing prevents minor discrepancies from escalating into significant problems, maintaining system integrity and public trust. Agility in Regulatory Change Management: As regulations evolve, full-population testing systems quickly adjust, ensuring continual compliance and demonstrating institutional agility. Insightful Data Analysis: This testing method extends beyond compliance, offering insights that can drive strategic decisions and operational improvements. Azimuth’s Revolutionary Approach with VALIDATOR Azimuth is pioneering this field with VALIDATOR , a product that quickly automates compliance testing across entire portfolios. VALIDATOR also offers actionable insights into potential risk areas. Integrated with Azimuth’s OMNIA and LINEAGE, VALIDATOR is part of a comprehensive compliance management ecosystem that ensures seamless information flow across all lines of defense—from understanding legal mandates to enforcing controls and executing tests. The move towards full-population testing is not just a technological upgrade but a necessary evolution to meet higher regulatory expectations and manage risks effectively. Azimuth’s VALIDATOR and its integrated solutions represent the cutting edge of this transformation, providing the tools needed to navigate the complexities of modern regulatory environments confidently. As the industry progresses, full-population testing isn’t just an option; it’s becoming the standard.  Learn how Validator can help your organization. Register for a demo today .

Fintech to join sixth cohort to advance regulatory and compliance capabilities for community banks  JACKSONVILLE, FL — Azimuth, a compliance automation pioneer, announced today its selection to the Independent Community Bankers of America’s (ICBA) ThinkTECH Accelerator Program, which kicks off January 8, 2024, in Atlanta. The sixth cohort selected for ICBA’s ThinkTECH Accelerator program was handpicked for its community bank-focused offerings primed to support several critical community bank needs, including analytics, automation, and compliance. This is the first of two planned accelerator programs for 2024 as part of ICBA’s shift to year-round programing and increased investment in ThinkTECH initiatives to support continuous development and advancement of community bank innovation. “As a growing presence in the global financial services market, we are thrilled to participate in the ICBA ThinkTECH Accelerator, a vital source of community banking innovation since 2019,” said Azimuth Founder and CEO Rohin Tagra. “Azimuth is transforming the way community banks manage regulatory compliance by leveraging automated full-population compliance testing, empowering them to quickly assess their entire portfolio, saving them time and money.” Azimuth provides a scalable, efficient, and technologically advanced solution for managing the complexities of regulatory compliance while providing a fair and equitable experience for customers. The company has unveiled a suite of innovative products – Validator, Validator HMDA, and Validator 1071, each tailored to address distinct compliance challenges in the financial sector. Validator revolutionizes compliance management by transforming complex regulations into actionable data, enabling organizations to efficiently meet and anticipate compliance demands. Validator HMDA, specifically designed for the Home Mortgage Disclosure Act, streamlines the reporting process, ensuring accuracy and efficiency in mortgage-related data submission. Validator 1071 aids financial institutions in accurately reporting credit application data for small businesses, including those owned by women and minorities, facilitating compliance with these critical new requirements. Together, these products showcase Azimuth’s commitment to leveraging advanced technology for more efficient, accurate regulatory compliance across the financial industry. Since its inception, the ICBA ThinkTECH Accelerator has connected the most innovative fintech companies with more than 1,400 community bankers and industry leaders — identifying and designing workable solutions that solve for today’s modern banking needs. Participants receive mentorship from a distinguished network of industry stakeholders through an immersive 10-week bootcamp and present their refined offerings to community bank executives during a demo at ICBA LIVE 2024 in Orlando. “We are pleased to have Azimuth join us as a member of our latest ThinkTECH accelerator cohort,” ICBA Executive Vice President and Chief Innovation Officer Charles Potts said. “With compliance such a key concern for today’s community bankers, it is critical they have solutions that can help them effectively find and address any gaps in their regulatory management as well as create more efficient processes to help cut costs.” About Azimuth Azimuth revolutionizes the world of regulatory compliance by being the first and only company to codify every state and federal law on one platform, changing the culture of compliance by taking manual compliance work done on paper spreadsheets and automating it. Led by founder and CEO Rohin Tagra, Azimuth is the only company bold enough to offer VALIDATOR, a software that provides daily automated tests of an entire portfolio to determine compliance with all applicable laws and regulations. About ICBA The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation. As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.