The pressure on compliance teams in Financial Services (FS) over the past decade has been enormous. Increased regulation, globalisation and a conservative approach to technology in many compliance teams, has left a number of banks and other FS providers struggling to make their compliance function truly effective.
It’s not a situation that is likely to improve in the short-term. Accenture’s 2019 Compliance Risk Study surveyed 151 senior compliance executives at banking, capital markets and insurance institutions globally, and revealed that 71 per cent of financial institutions’ compliance departments are facing a cost reduction target. 64 per cent of those are targeting budget reductions of between 10 and 20 per cent over the next three years – a considerable reduction when you think that many compliance departments would already consider themselves under-resourced.