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1. Identify the total costs of PLD software

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Before calculating ROI, it's important to understand all the costs associated with implementing and using the software. These costs fall into two main categories:

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a) Implementation costs

• Time and resources dedicated by your internal team (for example, compliance or IT).
• Technical support from the vendor to integrate the software with current systems.

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Example:

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Your team dedicates 100 hours (at $50 per hour) to implementation, resulting in a cost of:

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b) Recurring costs (subscription)

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• Monthly or annual fees for using the software.
• Technical support and upgrade costs included in the subscription.

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Example:

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The provider charges a monthly subscription of $2,000. This adds up to:

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Estimated total cost for the first year:

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2. Evaluate the benefits of PLD software

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ROI depends not only on costs, but also on the benefits that the software brings to your institution. Here are more ideas for identifying and calculating these benefits:

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a) Reduction of operating costs

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• Automation of manual processes, such as reviewing transactions or generating reports.
• Fewer repetitive tasks, more time for strategic decisions.

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Example: If you automate processes that consumed 80 hours per month and your team's hourly cost is $50.

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b) Preventing regulatory sanctions

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Failure to comply with regulations can result in significant fines. Good PLD software helps reduce this risk.

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Example: Your industry faces average fines of $100,000. With software, risk is reduced by 90%.

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c) Improved efficiency

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• Faster detection of suspicious activity.
• Reduction of false positives, reducing unnecessary investigations.

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Example: Reducing false positives by 50% saves 40 hours a month.

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3. Calculate the ROI

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Use the basic ROI formula:

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Practical example:

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• Estimated total benefits: $162,000 per year (reduced operating costs, prevention of sanctions and efficiency).
• Total costs: $29,000.

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In this case, the investment in the PLD software would generate a return of 458.62% in the first year.

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Other costs to consider

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It is important to note that implementing PLD software also involves certain costs that may vary depending on the institution:

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• IT team time: Integrating software with internal systems can require significant technology resources.
• Learning Curve: The time the team spends familiarizing themselves with the tool represents a cost in working hours.
• Historical data migration: If there is a need to transfer information from previous systems, this can create additional costs in time.

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Other benefits to consider

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In addition to the calculations mentioned above, PLD software such as Complif offers additional benefits that can transform your operations:

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• Time savings: In document analysis, adverse media searches, list crossings and monitoring of documentation requests.
• Better customer experience: Faster and easier onboarding makes it easier to onboard new customers.
• Process automation: Fewer repetitive tasks and greater focus on strategic activities.
• Standardization and efficiency: More consistent processes and fewer human errors.

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Conclusion

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The impact of PLD software goes beyond direct savings or the reduction of regulatory sanctions. Improvements in productivity, customer experience and operational efficiency are just as valuable for achieving robust and scalable compliance. While some of these costs are unavoidable, a good software vendor, such as Complif, works to minimize them by offering technical support, agile integrations, and effective training from the start. If you are looking to optimize these aspects in your institution, Complif may be the solution you need.