The landscape of bank compliance management is one of the most regulated ones. New regulations are constantly being rolled out to the sector. These rapid and dynamic changes make the banks a great canvas on which you can observe the transformative power of the compliance management software.
A recent study that was published by CSIweb.com: What will be the top banking priorities of 2020, shows that regulatory compliance is among US banking institutions’ top priority. The data of the research shows that:
- 75% of banks spend up to 20% of their budget on regulatory compliance
- 75% of banks are planning to spend up to 40% of their budget on compliance and cyber security
- 72% of bank executives said they will spend up to 20% of their budget on cyber security
The fluidity of the compliance environment in financial institutions is a stable proposition for dynamic changes in the government regulatory landscape too. One of the trends that is being observed in government regulators is their growing comfort about new technologies as AI and data automation in the finance sector. Government agencies are a conservative field, but they are demonstrating a will to support the adoption of new technologies in the compliance management operations of banks.
Is there a reciprocity of new tech adoption between banks and regulators?
On the other hand the acceleration of using cutting edge technologies like AI in the banking sector is creating a growing level of reciprocity. It means that regulatory agencies are also transforming by adopting new technologies in their inspection management process. For example our product Canalix – a cloud inspection solution successfully brings AI and data automation in government agencies as a result of their effort to move away from outdated legacy systems.
By updating their compliance management systems, regulators are not only responding to the upgrades that banks are investing in. Regulators are also realizing the need to shift their priority away from old legacy compliance systems and move it towards cloud-based solutions.
Is Covid-19 going to influence the adoption of new technologies in compliance management?
The CSI report was published in the end of 2019. It doesn’t capture the current shifts that are a result from the covid-19 crisis. However, looking at other reports that suggest growing use of cloud-based SaaS technologies, it’s a safe bet to say that regulatory compliance is about to come more into focus for the near future.
The dynamic changes in regulations in the financial field may be a big drama for banks and other financial institutions. But the growing level of adopting new inspection and compliance management systems from both: regulators and banks may make the drama a little bit more enjoyable.
Are you a financial regulator, looking for inspection management solution? Or a bank institution that needs to upgrade their compliance management system? Contact us now.