The Future of Compliance in Banking: Key Trends and Challenges

Compliance Headcount: Size Matters

A bank’s compliance function size is directly linked to its scale, geographic presence, and level of regulatory scrutiny. As banks expand globally, they require dedicated local compliance capabilities, driving up the headcount.

The Impact of Digitization on Compliance Functions

Digitization has revolutionized compliance functions by enabling agile ways of working. This shift allows for increased speed, efficiency, and effectiveness while maintaining independence. By embracing digitization, compliance teams can:

Improve data management and analysis
Enhance collaboration and communication
Reduce manual errors and increase accuracy

Pressure Testing: A Crucial Component of Compliance Programs

Regular pressure testing is essential to ensure the effectiveness and efficiency of compliance programs. This process helps identify vulnerabilities and areas for improvement, enabling banks to make necessary adjustments.

Staying Ahead: Five Key Topics Shaping the Compliance Landscape

Over the next three years, five key topics will significantly impact the compliance landscape:

Efficiency: Streamlining processes and reducing costs without compromising effectiveness
Data Availability: Ensuring access to accurate and reliable data for informed decision-making
Regulatory Focus: Adapting to evolving regulatory requirements and expectations
Qualified Employees: Attracting, retaining, and developing skilled compliance professionals
Comprehensive Risk Assessment and Oversight: Identifying and mitigating risks through robust assessment and oversight

Conclusion

To make their compliance functions fit for the future, banks must address these challenges and trends proactively. By doing so, they can ensure continued regulatory compliance, mitigate risks, and maintain a competitive edge in an increasingly complex and dynamic environment.