Technology, agility key components of next generation of compliance – survey

Faced with a future of unending disruption, as new technologies change the way business is conducted, ethics and compliance teams in the financial services sector must maximize use of this new tech to become more agile in identifying risks.

A report from professional services firm Accenture, based on a global survey of 151 senior compliance executives in the financial sector, found while 87% of respondents see investments in compliance increasing in the next two years, 72% said they have quantitative cost-cutting goals of more than 10% over the next three years.

'Such a dichotomy calls for incisive and bold thinking. Proofs of concept that showed a promising but uncharted path to a desired future, or that are no longer able to deliver the gains required, should give way to more industrialized deployment of new technologies that can provide a more flexible architecture able to drive risk management in the information age,' stated the report.

The report concentrates on the following and is a must read for anyone in the compliance profession:

1. Accenture’s 2019 Global Compliance Risk Study finds function leaders tasked with cutting costs but keeping pace with rapid change.
2. Compliance leaders can’t be complacent. Several steps can help them build Compliance 2.0.
3. New technology, new roles and a next-generation compliance officers are part of the path to compliance for the information age.

With financial institutions fueling growth with new business models, 'traditional approaches to compliance seem to be no longer fit for the future,' it said. 'Compliance should take steps to modernize its thinking to remain relevant as an advisor to business amidst the pace of the fourth industrial revolution.' One reason is the efficiencies achieved through use of artificial intelligence, machine learning, FinTech and other innovations shaping how work is done. Another is that front offices are taking on greater oversight of compliance, becoming what the report called 'a true first line of defense'.