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Retail Banking Compliance Survey: A Reality Check

Retail Banking Compliance Survey: A Reality Check

82% of compliance directors surveyed said that compliance demands will be higher in the next three years, while only 18% thought demands would stay the same, and none said that demands would shrink.
By Eva Weber

Boston, MA, August 13, 2007 – A new report from Aite Group, LLC details insights into the daily challenges of compliance professionals, and addresses compliance trends, budgets and staffing, and the various aspects of compliance technology. The report findings are based on a survey of heads of retail banking compliance at 17 banks, including 16 of the top 150 banks ranked by assets and one community bank.

The report, Retail Banking Compliance Survey: A Reality Check, shows that compliance demands are clearly rising and that, for most institutions, there is significant pressure on resources. As a result, many banks are looking to technology to help them do more with less. Compliance managers are thinking through resource allocations to ensure that the most important issues are addressed first. But meeting current regulatory standards is an exercise in near-constant course correction because state and federal laws are in a perpetual state of flux. Committing the right amount of technology to do the job without literally and figuratively breaking the bank proves difficult.

"Creating an effective compliance program is a highly customized process—every bank needs to think through its unique blend of products, processes, customers, geographies and technology to determine where the major risks are, and how they should be addressed," says Eva Weber, analyst at Aite Group and author of this report. "But it is clear from this survey that firms are almost universally struggling with resource constraints and rising workloads."

This 38-page Impact Note contains 32 figures. Clients of Aite Group's Retail Banking services can download the report.