Opinion | Banks must beef up compliance technology to survive in the era of digital threats
The creation of annual plans driven by once-a-year risk assessments is no longer an effective compliance road map
Faced with the growing threat of industry shocks such as cyber fraud, cryptocurrency, quantum computing and open banking, the time for compliance departments to act is now. They must embrace innovation just like other parts of the business are doing.
As financial institutions navigate digital threats and an evolving regulatory landscape, management teams need to allocate funding and time to developing new operating models, bringing in new tools and technologies and equipping staff with new skills.
Most financial institutions expect to increase their compliance investments during the next two years as they seek new approaches to strengthening their compliance capabilities, according to a new report by Accenture. Those that don’t are at risk of falling behind their competitors.
Based on a survey of 150 compliance executives at financial services institutions globally, Accenture’s fifth annual compliance risk report, “Comply and Demand,” found that 89 per cent of respondents expect to increase their compliance investments in the next two years. The study revealed that the top spending priority for compliance officers during the next 12 months is technology transformation, cited by 24 per cent of respondents. Investments will be led by the implementation of new surveillance tools, with half (49 per cent) of respondents planning to deploy these technologies this year.
