"Ncontracts found that leadership support is rising at the compliance level, with 82% of respondents saying they're satisfied with board and management backing, while 74% are satisfied with their institution's compliance culture. More than half (56%) reported stronger integration of compliance into policies, procedures and training since 2021. Nearly 40% of institutions operate with one or two compliance professionals, while 25% of firms with $1 billion to $10 billion in assets have similarly small teams."
"Meanwhile, 64% expect budgets to remain flat or shrink in the next 12 to 18 months. Experience gaps are growing. While most compliance staff are highly experienced, many are nearing retirement. At roughly one in four institutions, 25% of personnel may retire within five years, and 9% of institutions risk losing more than half their compliance team. Regulatory uncertainty is the top compliance risk at 38%, followed by fair lending (33%), limited resources (30%) and staff training (30%)."
"Traditional risks such as Bank Secrecy Act/Anti-Money Laundering rules (25%) and cybersecurity (16%) have declined from their 2021 peaks. The study also identified a technological divide. Manual compliance processes generate seven times more examiner concerns and four times lower staff satisfaction. Only 32% report no use of artificial intelligence, while 26% are exploring or piloting AI solutions. What we're seeing is compliance evolving into a strategic function that influences everything from risk culture to boardroom decision-making, said Michael Berman, founder and CEO of Ncontracts."
Leadership support at the compliance level is rising, with 82% satisfied with board and management backing and 74% satisfied with institutional compliance culture. More than half reported stronger integration of compliance into policies, procedures and training since 2021. Nearly 40% of institutions operate with one or two compliance professionals, and 25% of firms with $1 billion to $10 billion in assets also have similarly small teams. Sixty-four percent expect budgets to remain flat or shrink in the next 12 to 18 months. Experience gaps are growing as many experienced staff near retirement. Regulatory uncertainty leads compliance risks, while AI adoption is limited and manual processes increase examiner concerns and lower staff satisfaction.
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