It’s clear that compliance should no longer be perceived as a mere regulatory cost, but as an opportunity to reduce operational and reputational risk, enhance the customer experience and lead to high overall digitization, ultimately benefitting the banking performance.
This short paper, illustrated by Temenos Value Benchmark observations and data, demonstrates how targeted investments in compliance can have an overall positive impact on the bank’s financial performance.
- Total average compliance spend can be equivalent to 6.7% of revenues, 69.5% of which are attributable to FTEs
- On average only 32.4% of banks’ IT budget is dedicated to growth and innovation, the rest is directed towards maintenance and the cost of “keeping the lights on”
- The more digitalized a bank is, the higher the compliance staff efficiency
- Maintaining an efficient compliance function contributes positively to the bank’s financial performance
- Compliance is an opportunity to reduce operational and reputation risk, enhance the customer experience, and lead to high overall digitization