BRENTWOOD, TENN., March 20, 2018 — Technology may ease the compliance burden for banks, but it's not driving down compliance budgets, according to Bank Director's 2018 Risk Survey, sponsored by Moss Adams LLP. In fact, 55 percent of the directors, chief executive officers, chief risk officers and senior executives responding to the survey say that the introduction of technology to improve the compliance function has increased the budget. Just 5 percent say that technology has decreased their compliance costs.
These technological solutions—dubbed "regtech"—are widely used in the industry. The majority of respondents indicate that technology is used to comply with the Bank Secrecy Act, vendor management, Know Your Customers rules and the Community Reinvestment Act.
The 2018 Risk Survey was conducted in January 2018, and surveyed 224 chief executive officers, chief risk officers, senior executives and board members of U.S. banks above $250 million in assets to examine their views on the risk landscape for the banking industry, including cybersecurity, credit risk and the impact of rising interest rates.
Cybersecurity remains a top category of concern for executives and directors. "Cybersecurity continues to be the No. 1 threat that keeps bankers up at night," says Al Dominick, CEO of Bank Director. "From year to year in our survey, boards and executives demonstrate a consistent effort to tackle the issue, but it's hard to stay ahead of cybercriminals—and the industry is well aware of this."
Additional findings include:
"Given the disruption in technology, forecasted rate changes and pressure in regulatory compliance, there's a perfect storm brewing in the banking industry that needs to be carefully navigated by both the board and bank management," says Craig Sanders, a partner at survey sponsor Moss Adams.
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Since 1991, Bank Director has served as a leading information resource for the directors and officers of financial institutions. Through its print and digital editions of Bank Director magazine, executive-level research, annual conferences and its website, BankDirector.com, Bank Director reaches the leaders of the institutions that comprise America's banking industry. Bank Director is headquartered in Brentwood, Tennessee.
About Moss Adams LLP
With more than 2,600 professionals across 20-plus locations in the West and beyond, Moss Adams provides the world's most innovative companies, including over 500 financial institutions with specialized accounting, tax, and consulting services to help them embrace emerging opportunity. Discover how Moss Adams is bringing more West to Business. For more information about Moss Adams, visit www.mossadams.com/fi.
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