Compliance costs have been rising steadily over the years but may have hit their peak. While firms typically spend 4% of total revenue on compliance currently, that amount could rise to 10% by 2022 according to some estimates. The top three compliance risks facing firms are business risk, fraud and financial crime risk, and cyber risk. However, firms are now using financial technology (FinTech) to help meet compliance needs and gain efficiencies to minimize costs. New technologies can automate routine tasks, increase operational efficiency, and help firms ride past the peak of increasing compliance costs.

1. Email: Kwame.Essieh@eaiinfosys.com
Learn what the right
compliance technology can
do for your organization
Check the upward trend
Over the years, compliance burdens have
risen steadily
But compliance expenditures may have
hit their peak
– Thomas Ward, EY5
1
Stacey English, Susannah Hammond, “Cost of Compliance 2017,” Thomson Reuters
2
Accenture, “Compliance Costs for Financial Institutions Will Continue to Increase Over the Next Two Years Driven by
Regulations and Emerging Risks, According to Global Accenture Survey of Executives,” April 10, 2017
3
Lucy McNulty, “Compliance costs to more than double by 2022,” Financial News, April 27, 2017
4
John Rodgers, Sachin Sachdeva, “Best Practices for Operational Compliance Transformation,” International Banker,
February 16, 2017
5
Tom C.W. Lin, The Rise of FinTech and Compliance,” Compliance & Enforcement, NYU School of Law Program on
Corporate Compliance & Enforcement, March 23, 2017
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Firms typically
spend 4% of total
revenue on
compliance, but
that could rise to
10% by 20223
Percentage of
institutions spending
more than 5% of
their net income
on compliance2
Percentage expecting an increase in compliance
budgets in 20161
48%
69%
35%
26%
2016 percentage of firms spending
more than 1 full day per week tracking
and analyzing regulatory change1
2017 percentage1
Percentage expecting an increase in 20171
53%
Business riskFraud and financial crime risk
47%
Cyber risk2
45%
The top 3 compliance risks:
Budgets are moderating
Regulatory changes are
becoming less demanding
70% 89%
2017 2022
4%
10%
2015 2016
16%
23%
And regulatory
uncertainty remains
The Trump administration and Brexit,
were seen as some of the greatest
compliance challenges practitioners
expected to face in 20171
“The deluge of data and regulations that
compliance departments now oversee
simply demands the monitoring,
analytical, and processing power of
new information technology.”5
“When companies use data and tech
to automate routine tasks, they can
increase operational efficiency and
better utilize the skills and
expertise of human personnel.”4
of financial firms
expect the focus on
managing regulatory
risk to increase over
the coming year1
of financial services
industry executives
globally expect
continued cost increases
in their compliance
departments over the
next two years2
COMPLIANCE
Most importantly, firms are using FinTech
to meet compliance needs, in addition to
gaining efficiencies that minimize costs
Get the most from technology.
Ride past peak compliance with EAI:
Record data quickly, accurately and securely
Efficiently and automatically manage broker/dealer risk and
liability across multiple business lines
Aggregate data from multiple systems and sources and view on
a single screen
Automatically red-flag non-compliant or unsuitable transactions
for increased scrutiny and document compliance reviews at
varying levels
in compliance costs