Compliance Is Starting To Break The Bank — It Doesn't Have To

On February 21, 2024, LexisNexis Risk Solutions published its True Cost of Financial Crime Compliance Study, reporting on the results of a global online survey to evaluate the cost, current state, and challenges presented by financial crime compliance operations amongst financial institutions. From May to June 2023, the survey sought input from 1,181 senior decision-makers at financial institutions, with 160 participants from the U.S. and Canada.

The study revealed that financial crime compliance costs have increased 99% for both Canadian and U.S. financial institutions, with industry costs soaring to $6.1 billion, and that financial institutions are keen to prioritize finding efficiencies to cut costs. As the study reveals, technology and outsourcing have been top of mind for financial institutions, both large and small, to deal with the increasingly complex compliance regulatory landscape and heightened customer expectations.