Compliance spending rises as regulatory pressures mount
Almost 90 per cent of financial services firms have reported higher compliance expenditure over the past five years, amid ongoing pressure from regulators.
According to a new report from compliance tech and data analytics firm SteelEye, 44 per cent of firms plan to invest more in regtech over the next 12 months, in order to cope with the growing pressure on regulated businesses.
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Another 41 per cent said they planned to invest the same amount as they did over the previous 12 months.
“Our first Compliance Health Check Report demonstrates the breadth and complexity of challenges facing today’s compliance professionals,” said Matt Smith, chief executive of SteelEye.
“Keeping abreast with regulatory change, improving data quality and managing risks and controls within the business are just some of the headaches facing compliance teams.
“The good news is that firms are clearly beginning to recognise the role technology can play in solving complex compliance challenges. In fact, 85 per cent expect to invest the same amount or more in regtech in the next 12 months.”
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75 per cent of the compliance professionals surveyed said that they think the financial services sector is in a good position to handle more stringent regulatory rules over the next five years, but SteelEye’s research pointed towards an increased reliance on technology.
Almost half said that they struggle with data management requirements, while 20 per cent said that keeping up with regulatory change is their biggest challenge.
“Technology and data are key to establishing future-proofed compliance processes and procedures,” added Smith.
“It is great to see that a large proportion of firms view the enhancement of data quality as a top priority and that most firms are actively investing in technology.
“By prioritising how to bring together disparate datasets and make better use of data firms can more easily address regulatory change and other compliance challenges that will emerge down the line.”
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