IBM’s regulatory compliance platform
Regulatory issues within enterprises have boosted demand for compliance software. To meet regulatory standards and market requirements, IBM (IBM) has continued to build its compliance platform through acquisitions.
In November 2016, the company bought risk management and regulatory compliance consultancy Promontory Financial. In May, IBM bought Armanta, whose technology platform helps financial institutions meet regulatory guidelines.
Recently, such technology is necessary, as it helps organizations, particularly financial companies, avoid penalties in their day-to-day activities. Implementing compliance platforms can speed up companies’ decisionmaking, thereby driving business growth.
How can acquisitions enhance IBM’s compliance platform?
IBM has integrated Promontory’s deep industry and regulatory expertise into its Watson AI platform to offer an enhanced AI solution to clients. Armanta’s technology platform rapidly combines a huge collection of data across systems, saving time.
The launch of such innovative products could drive IBM’s top line while countering competition from tech peers such as Microsoft (MSFT), Accenture (ACN), and Oracle (ORCL). As shown in the graph above, IBM’s revenue has grown at a compound annual rate of 1.2% over the last five quarters.