Since the 2008 global crisis, government tolerance for bank failures has decreased, and the demand for interventions that use taxpayers’ money to save banks has been reduced.
Fremont, CA: Risk and compliance management are both very crucial for banks. Risk and compliance are heavily influenced by changing business lands, the economy, corporate vision, customer demands, and much more. Information technology proved to be a driving force behind most of the changes in banking. The 2008 financial crisis brought a massive wave of change in the banking sector, compelling banks to rethink their method of handling risks.
Growing Regulatory Requirements
Since the 2008 global crisis, government tolerance for bank failures has decreased, and the demand for interventions that use taxpayers’ money to save banks has been reduced. Regulatory bodies are monitoring suspicious behavior with more effort, with many planning to use cutting-edge tools and technology to enable better audits.
Banks can overcome challenges by building a resilient regulatory compliance framework that enables them to detect non-compliance and monitor risks quickly. This can be achieved with compliance management solutions that provide continuous monitoring along with streamlined compliance workflows.
Changing Customer Expectations
Customer expectations and demands are changing with time. These changes in customer expectations are allowing for radical changes in the profile of the banking sector. The extensive use of technology will soon become the norm for customers when interacting with their bank.
Customers prefer digital banking services because they enable them to access their accounts and perform necessary transactions at any time of the day without going to a bank. Digital banking is a win-win situation for both customers and banks – banks reap benefits because they can offer services to customers without increasing headcount and other associated expenses. Banks can also consider more customers without needing to open more physical branches and hiring more employees.
