Financial Services Compliance Officers Saddled With Dated Technology

Financial Services Compliance Officers Saddled With Dated Technology, Tight Job Market Fight To Manage Implementation And Staffing, New Survey Says

Senior-level executives cite concern with workload, difficulty integrating compliance systems enterprise-wide

New York, August 2, 2016 — In an increasingly complex regulatory environment, many financial institution executives are concerned that they have insufficient staff, technology and budgetary resources to support their anti-money-laundering (AML) efforts, a survey of financial service executives released today by financial technology solutions provider NextAnglesTM revealed.

The top future concern for executives regarding AML was effective enterprise-wide compliance and integration, with 79 percent describing themselves as moderately or very concerned. The respondents also said case analysis time is concentrated heavily on routine monitoring such as data analysis (35 percent), data collection (34 percent) and data consolidation (29 percent).

For 2016 and 2017, cybersecurity, Know Your Customer (KYC) regulations, and AML remain top priorities.

AML in particular presents a host of challenges for financial institutions. In addition to the integration of AML systems in different business functions and regions, future concerns cited by respondents include the introduction of new regulations (77 percent), staffing challenges (76 percent), and a lack of clarity regarding rules for compliance with existing regulations.

The online survey of 280 senior-level executives of financial institutions with $3 billion or more in assets was conducted in May, 2016 by SourceMedia Research for NextAnglesTM. All survey participants are involved in compliance-related decision-making and execution.

When asked to outline their priorities related to their overall governance, risk and compliance strategy, cybersecurity was cited as a top concern by 81 percent of respondents, while 71 percent cited anti-money laundering and 72 percent said know-your-customer regulations were top priorities.

Despite increasing technological advances in artificial intelligence-based compliance solutions, 27 percent of respondents said their staff still utilize spreadsheets on the job.

Staffing remains a challenge due to a multitude of factors. More than three quarters cited the competitive job market as a concern, while 77 percent noted a shortage of qualified applicants and their own hiring budget as a concern. 67 percent said compliance training of existing staff remains a challenge.

“The survey shows increasing anxiety among financial institution executives that they are insufficiently staffed and equipped for today’s compliance challenges,” said Mallinath Sengupta, Chief Executive of NextAnglesTM. “Even more concerning, the inability to build cohesion in AML systems leaves institutions vulnerable to missed red flags, inefficiencies, and redundancies.”

The survey showed that a majority of companies employ fewer than 1,000 employees dedicated to compliance, with about 20 percent viewing that level as too low. And while 9 out of 10 bankers said they would be interested in an anti-money laundering (AML) solution that provides an integrated view of customer data; evolves incrementally with usage; and can be applied across diverse risk and compliance areas, three quarters did not know where to find such a solution in the current market.

To view the full NextAnglesTM Anti-Money Laundering (AML) Survey Results, please visit: https://nextangles.com/downloads/download-info/nextangles-anti-money-laundering-survey/

To read a NextAnglesTM white paper analysis of the current AML compliance landscape, please visit: https://nextangles.com/downloads/download-info/the-aml-compliance-landscape/


About NextAngles™

NextAngles™ is a venture within Mphasis Corporation. We believe in Compliance Reimagined —a new breed of disruptive solutions for regulatory risk and compliance. The solution we are building incorporates cognitive models and smart data that empower intelligent system behaviors. Our smart compliance approach reduces the risk, burden, cost, and stress of compliance substantially, harnesses data streams to automate fulfillment of multiple regulatory requirements, and scales to meet enterprise-class business and regulatory challenges. For more information, please visit www.nextangles.com

About Mphasis

Mphasis enables chosen customers to meet the demands of an evolving market place. Recently named by American Banker and BAI as one of the top companies in FinTech and as the “Most Distinguished Digital Company in 2015” by The Economic Times, Mphasis fuels this by combining superior human capital with cutting edge solutions in hyper-specialized areas. Contact Mphasis on www.mphasis.com

Financial Services Compliance Officers Saddled With Dated Technology

Financial Services Compliance

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted & limited time offer for being a sophisticated and loyal reader.

ValueWalkPremium is a website and newsletter on the latest industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 2/29/2019 or after next 25 subscribers take advantage whichever comes first – please do not share this discount with others

 

0