Perspective: Realizing the Regulatory Payoff on Compliance Analytics
This IDC Financial Insights Perspective takes a look at the challenges and opportunities of monetizing regulatory compliance spending. Regulatory compliance remains a focus for financial firms worldwide. Firms must maintain their staff and programs and continually search for new ways to maintain compliance monitoring and stay ahead of new threats, schemes, and criminal elements. Increasingly, IDC Financial Insights believes that firm managements will increase pressure on the firms' business and technology teams to find ways to monetize technology spending on regulatory and compliance programs as a way to recapture some of the compliance technology investments. Regulators are keeping up the pressure by adding new regulations and making compliance program reviews and inspections more detailed. For example, regulators are asking firms to see the data and the models firms are using for anti–money laundering (AML) transaction monitoring. As a result, firms are bolstering their AML transaction monitoring capabilities in an effort to stay ahead of new threats.