ATLANTA — Today, LexisNexis® Risk Solutions published an infographic summarizing the survey results of U.S. and Canadian compliance professionals on the range of challenges that financial institutions have experienced during the COVID-19 pandemic. The survey outlines the issues that many financial institutions encounter today and finds that the pandemic continues to test the resilience and agility of businesses across every market.
Respondents from banks, investment firms, asset managers and insurance firms answered a series of questions that would help determine the business impact that the pandemic has had on compliance departments. The top three issues that compliance departments within financial institutions have experienced during the COVID-19 pandemic are:
COVID-19 protocols and subsequent remote working requirements are also negatively impacting the effectiveness and efficiency of key compliance activities. The compliance professionals surveyed highlighted several important aspects of their positions that stand out as particular problem areas. Percentage of compliance professionals reporting negatively impacted areas:
The ongoing pandemic-related pressures that compliance departments face will likely also drive increased compliance costs in the future. This is true for financial institutions of all sizes. While technology seems to be a greater cost factor for larger financial institutions, labor costs impact smaller institutions on a greater scale.
“The events of 2020 have been unprecedented and financial institutions must prepare for increased risk of financial crime for the foreseeable future,” said Leslie Bailey, senior director of financial crime compliance strategy for LexisNexis Risk Solutions. “Compliance teams can optimize resources to better navigate the new normal brought by the pandemic while maintaining the customer experience with a multi-faceted approach that includes efficient technology, intuitive analytics and extensive global risk intelligence.”
Download a copy of the Impacts of the Global Pandemic on Financial Crime Compliance infographic.
The study surveyed 150 decision-makers in the U.S. and Canada who oversee financial crime compliance processes at their companies, including but not limited to sanctions monitoring, Know Your Customer (KYC) remediation and anti-money laundering (AML) transaction monitoring. Organizations included banks, investment firms, asset management firms and insurance firms. The total annual cost of compliance across firms was calculated using survey data on financial crime costs, as a percent of total assets and secondary data that provides the total assets for all FIs in the U.S. and Canada. The spend amount was generated by multiplying the average percent allocated to financial crime costs by the reported total asset amount.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com.
Senior Director, Global Communications