Regtech doesn’t kill compliance jobs; it complicates them

Before applying regulatory technology, which is supposed to simplify working processes and save costs, banks must first have compliance officers who understand how it works.
Left to right: Ann Shi (FinanceAsia), Brian Tang (ACMI), Mary Wong (PwC), Jenny Fung (ABN AMRO), Paul Costers (Bureau van Dijk)
Left to right: Ann Shi (FinanceAsia), Brian Tang (ACMI), Mary Wong (PwC), Jenny Fung (ABN AMRO), Paul Costers (Bureau van Dijk)

Across most of the financial sector, compliance has been the only department growing in the years since the financial crisis of 2008. That's no surprise, given banks have since paid about $321 billion in fines over failures to identify and address money laundering, market manipulation and terrorist financing, among others, according to Boston Consulting Group.

But the surge in the number of compliance officers has also added to the pressure on the bottom line of financial institutions. A McKinsey study put the cost of navigating the regulatory minefield at more than 10% of all operational spending of major banks around $270 billion per year between them.

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